Can Travel Retail Survive Today's Aggressive Market Competition?

Special Issue TFWA World Exhibition/ FDFA October/November 2015

Can travel retail survive today’s aggressive INSIDE INSIDER News market competition? North America U.S. Airports: MSP, LGA, DFASS at The travel retail industry is DFW, MIA, DFA at IAD facing some daunting challenges Canada: FDFA turns 30 - this year, from currency issues, A look back and ahead with FDFA’s mergers and consolidation, to Peter Brain and Laurie Karson increasing competition coming from outside the channel. South America is suffering from dire political and economic woes, which are impacting travel Expansions and renovations at retail especially hard in Brazil Importations Guay Ltee, and on the Uruguayan border. Blue Water Duty Free “It is a tough market, and unfortunately we think this may Caribbean be the new normal for travel retail Puerto Rico fiscal crisis, in South America. So we will Cuba opens have to get used to doing business South America under these conditions,” one Economic analysis major supplier told TMI. One of the most pervasive Innovative animations like this race car video game experience for RL complaints voiced by retailers Fragrances Polo Red at Ezeiza International Airport in September use from Canada to the Caribbean retailtainment and digital tools to recruit customers and build brands. Page 61 is the threat posed by internet sales, which are inundating the internet is having on their business: seen within the pages of this issue marketplace with aggressively “Customers come in to try of TMI, U.S. airports continue priced goods and to-your-door the new fragrances, but then tell to expand and modernize their service. us they will buy it online,” was facilities and commercial offer to The Estée Lauder 2015 Breast Peter Brain, president the refrain voiced over and over. satisfy the retail demand. Cancer Awareness campaign is a call to action of Canada’s Frontier Duty The online price is attractive and Ever resilient, the travel Free Association, addressed travelers do not wish to carry retail industry is adapting to Supplier Features the “aggressive price-based any extra purchases these days, accommodate the changing Giorgio Armani Cosmetics, competition in the U.S.” most especially as more airlines are marketplace, providing value and RL Polo Red, Parlux, Kering takes aim eloquently: charging luggage fees, they say. entertainment at the point of sale at Americas, Safilo, worldclassbrands “…As niche retailers with a The United States and the and using many new digital tools limited product breadth relative Canadian airports are brighter to communicate with consumers to mass-market discounters and spots in the gloom, however. at all points of their travel internet retailers, we have to Anna.aero reports that the experience. ensure our duty free offering U.S.-Europe market is undergoing The travelers are there – air continues to provide trusted and its longest period of sustained traffic and visitation numbers compelling value. Otherwise, capacity growth in over a are up throughout the Americas. it will become more and more decade, with the trans-Atlantic The challenge will be to find new easy for consumers to transfer route growing by 6%. Next year ways to appeal to these potential purchases away from duty free to promises further growth in U.S.- shoppers while they are in the other sellers,” he observes. Europe capacity with eight carriers channel. Sinatra Century During the Tairo International launching new U.S.-Europe Read all about it, Inside Brown-Forman celebrates beauty training that took place at services. The number of Chinese Insider. Frank Sinatra’s 100th birthday the end of September, nearly every travelers to the U.S. and Canada Caribbean retailer TMI spoke with also keeps growing, and these Lois Pasternak, Plus Products-People-Places brought up the impact that the visitors are here to shop. As will be Editor/Publisher The Insider View SUPERIORITY. COMPLEX.

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TABLE OF CONTENTS Retail and News Features

COVER COMMENTARY Lancôme “All Stars” unite in Can travel retail survive today’s Advanced Génifique campaign Page 59 aggressive market competition? L’Oréal TRAM and Dufry engage air passengers with Polo Red challenge Page 60 BY THE NUMBERS Essence Corp. brings excitement at POS Page 64 ACI 2014 World traffic report Page 12 Parlux launches RiRi by Rihanna Page 66 Airports, Aviation, Tourism Page 14 Tairo seminar honors Caribbean BAs Page 68 TFWA 2015 World Exhibition Page 18 Rituals expands inflight Page 69 Revlon unveils LOVE IS ON fragrance Page 70 North America - U.S. Crislu reinforces reputation for Dufry, Hudson at MSP Page 20 “affordable luxury” Page 71 Westfield at LAX Page 20 Kering Eyewear launches with special Page 74 LGA to get $4b redo Page 22 plans for Americas and TR DFW chooses DFASS JV Page 24 Safilo: brand-led and design-inspired Page 76 Buckley London: a TR success story FEATURES in the Americas Page 78 MIA transforms with expanded retail Page 26 Worldclassbrands adapts Page 80 Furla, TUMI, WOPI, Paul & Shark, DEN adds new retail Page 29 Scorpio Page 82 DFA inaugurates branded boutiques at Dulles Page 30 Spirits News Industry supports DFA Golf Charity Page 32 IWSR rankings Page 84 Brown-Forman’s American Whiskey Page 86 North America – Canada Devallet joins Rémy Cointreau TRA Page 88 FDFA President Peter Brain: Toronto hosts John Dewar & Sons Canadian land border must adapt Page 33 Fine Whisky Emporium Page 90 FDFA celebrates 30 years Page 34 Chivas Regal The Icon at Vancouver Page 91 Operator Focus: IGL Page 36 Absolut, Disaronno, Macallan, Operator Focus: Blue Water Bridge DF Page 38 MONARQ, Accolade Wines, U’Luvka Page 92 Canada by the numbers Page 40 The Art of Patrón Page 98 ARI opens MAC in Montreal Page 41 Diageo Page 99 Beam Suntory’s whisky focus Page 100 Latin America & Caribbean Wm Grant’s special partnerships Puerto Rico’s fiscal crisis Page 42 drive business Page 102 Cuba ramps up Page 46 New flavor from Dooley’s Page 102 Image DF sets sail to Bimini- Next stop: Havana Page 48 Confectionery/ Electronics News Page 104 Economic Review: LA downturn impacts entire region Page 50 Special TMI Feature Asuncion tender Page 52 “Mr. DANZKA” turns 60 and looks More Brazil airport privatizations Page 54 back on how it used to be Page 112 Air traffic up in Chile Page 54 Advertising Index Page 112 ON THE SUPPLY SIDE Fragrance & Accessories People News Page 113 Estée Lauder’s 2015 BCA campaign takes off with Heathrow event Page 56

TFWA/FDFA Issue October/November 2015 10 Prime Cellar Selection Reserve Cellar Selection

DUTY FREE EXCLUSIVE

11 October/November 2015 TFWA/FDFA Issue INSIDER

BY THE NUMBERS ACI 2014 World Airport Traffic Report: ATL #1 in pax traffic; O’Hare #1 in aircraft movements, Dubai overtakes #1 in international traffic

Atlanta and Chicago may still be economic engines driving this phenomenon. growing airports among the world’s top 30 duking it out for the position of #1 airport in airports for passenger traffic, moving from the world, but both have bragging rights for Key statistics: Passenger traffic 18th to 13th rank. a top spot in 2014: Atlanta (ATL) remains · Worldwide airport passenger numbers The world’s top 30 airport cities handle the world’s busiest airport on the globe with increased by 5.7% in 2014 to over 6.7 more than one-third of global passenger 96 million passengers in 2014, and Chicago billion, registering increases in all six traffic. London remains the world’s largest (ORD) regained its position and became regions. airport system with almost 147 million the busiest airport in terms of aircraft · Atlanta (ATL) -- the world’s busiest airport passengers handled at six airports in and movements, followed by Atlanta (ATL) and -- reported 96 million passengers in 2014 around the metropolitan area. New York Los Angeles (LAX). with traffic up 1.9% over 2013. #2 ranked maintains the second position with 116 But Dubai (DXB) – while the sixth- Beijing (PEK), with 86 million passengers, million passengers at three airports. Tokyo busiest airport in the world in overall experienced growth of 2.9% in 2014, down is the third city market with 109 million passenger traffic – can now claim the title of from the double-digit growth it had achieved passengers. the world’s busiest in terms of international in previous years. passenger traffic, ahead of London- · Airport traffic in emerging markets and The world’s busiest international airports Heathrow (LHR) in 2014, according to developing economies experienced growth (international passenger traffic) Airports Council International (ACI)’s latest of 8%, whereas airports in advanced Dubai, United Arab Emirates – DXB (69.9 World Airport Traffic Report. economies grew by 4% in 2014, with million, up 6.2% over 2013) “Passenger traffic remained resilient emerging markets reaching a 43% share of London, United Kingdom – LHR (68.1 in the face of the global uncertainties that global passenger traffic. million, up 1.1% over 2013) beleaguered many economies in 2013 · During 2014, the highest number of Hong Kong, China – HKG (62.9 million, up and 2014,” said Angela Gittens, Director passengers went through airports in the 6.1% over 2013) General of ACI World, who noted that Asia-Pacific region: overall global passenger traffic grew at a rate 1.Asia-Pacific (2.3 billion, up 7.1% over The world’s busiest domestic airports of over 5%. This is above the 4.3% average 2013) (domestic passenger traffic): annual growth rate in passenger traffic from 2. Europe (1.8 billion, up 5.5% over 2013) Atlanta GA, USA – ATL (85.4 million, up 2004 to 2014. 3. North America (1.6 billion, up 3.2% over 1.5% over 2013) Gittens noted that the divergence in 2013) Beijing, China – PEK (68.9 million, up growth between airports located in emerging 4. Latin America-Caribbean (531 million, up 5.4% over 2013) markets and those in advanced economies – 6.4% over 2013) Tokyo, Japan – HND (62.2 million, up 2.1% where the mature markets of North America 5. Middle East (308 million, up 10.8% over over 2013) and Europe experienced modest growth 2013) levels compared to the significant gains 6. Africa (180 million, up 2.7% over 2013) Worldwide aircraft movements posted by the major emerging economies in increased by 1.3% in 2014 to 84.6 million, the BRICS (Brazil, Russia, India, China and With over 1.4 billion passengers, with mixed levels of growth across the South Africa) countries, was not the case in BRICS countries, which represent 21% of regions. 2014. global passenger traffic, achieved strong “Europe and North America have growth of 9% in rebounded in 2014, which resulted in a form passenger traffic. Editor/Publisher: Lois R. Pasternak of convergence in growth rates across the MINT countries In Memoriam: Paul A. Pasternak Executive Editor: Michael Pasternak regions,” said Gittens. (Mexico, Deputy Editor: Lara Pasternak “Irrespective of the short-run changes Indonesia, Nigeria Editorial Contributors: Larry Luxner, John Gallagher in the business cycle, long-term growth and Turkey) Production Coordinator & Designer: Chris Hetzer prospects in air transport demand will also achieved Design and Production: It’s About Time, Inc. continue to come from emerging markets,” robust traffic Webmaster: Michael Pasternak Printing by The Printer’s Printer. Ft. Lauderdale, Florida Gittens noted. “This is largely because of growth, with a This publication is a special supplement of Travel Markets Insider, published the demography of these markets—most of 7.2% increase for by Pasternak Communications, Inc., 255 NE 3rd Ave No. 312, Delray Beach, the world’s population resides in emerging passenger traffic FL. 33444 USA. www.travelmarketsinsider.net E-mail: [email protected], [email protected] markets and developing economies. in 2014. Tel (561) 908-2119 Fax (561) 908-2257 Liberalization of air transport, sizeable Istanbul Travel Markets Insider is a weekly newsletter distributed 50 times a year population bases and rapid rises in per- (+10.5%) remains via e-mail, on a subscription basis only. The annual subscription is US$200. Printed in the USA. All rights reserved. capita incomes in these markets are the main one of the fastest- © 2015 by Pasternak Communications, Inc.

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BY THE NUMBERS IATA: Passenger traffic in Venezuela falls 8.5% as country breeches international agreements

The International Air Transport economic benefits that it could bring. Air carriers are forced to pay for fuel in U.S. Association (IATA) reports that passenger travel options in Venezuela are diminishing dollars instead of Venezuelan bolivars, traffic in Venezuela fell 8.5% in 2014 while the country’s citizens and businesses going against the non-discriminatory compared to a year earlier, in sharp contrast pay more to travel due to the negative spirit of the Chicago Convention which to other key economies in the Latin impact of government policies. The 8.5% Venezuela has signed. This is particularly American and Caribbean region which fall in passenger numbers is significant. problematic as purchasing fuel is one of reported growth. By contrast, other key Latin American the few avenues airlines have for spending This decline outpaced the 3.0% GDP economies saw passenger growth in the accumulated local currency that cannot be contraction in Venezuela during the same 2 to 12% range. An urgent change of repatriated, says IATA. period, reflecting the growing impact of policies is needed,” said Tony Tyler, IATA’s draconian government policies on airlines, Director General and CEO. including restrictions on the repatriation IATA warns that Venezuela is of currency. IATA urged the Venezuelan breaching international agreements and government to reform the country’s the principles of the Chicago Convention air transport policies to avert a further in its treatment of airlines. The association deterioration of the country’s already says that with currency controls preventing limited air connectivity. airlines from repatriating their revenue; “The Venezuelan government’s the amount of blocked funds now totals policies are crippling the air transport US$3.8 billion. sector and depriving its people of the In addition, says IATA, foreign

Mixed news for South America’s airlines With passenger traffic still increasing The strength of its hub strategy and market international figures. Cargo revenues at international airports in South America, diversification is likely to pull the airline dropped about 20%, a sign of the economic the outlook for the airline business appears through in the long term. slowdown in LATAM’s main markets. to be bright according to the numbers. On Lower passenger numbers and poor Colombian airline Avianca flew closer analysis, some slowdown could be cargo numbers affected LATAM Airlines 13.6m passengers in the first half of 2015, looming on the horizon. 2nd quarter results, as the airline celebrated up 9.2% on the previous year. Although Panama-based airline Copa posted the third anniversary of the merger between turnover was slightly up, there had been poor second quarter results reflecting lower Santiago headquartered Lan Airlines and pressure on margins to reach the increased demand in Colombia and Brazil, along with Brazilian carrier TAM. Low domestic load factor, said the airline. Given the continuing problems in repatriating funds demand and the volatile exchange rate uncertain economic outlook, Avianca has from Venezuela. Copa is still forecasting affected the traditional TAM domestic postponed the receipt of four new aircraft 5% growth for the year, but may have to business in Brazil. Stagnating domestic that were due to be handed over in H2 of reduce yields to ensure higher load factors. demand in Chile was only offset by better 2015 until next year. JG

International visitor spend injects more than $127.3 billion into U.S. economy January-July

The U.S. Department of Commerce billion on travel to, and tourism-related an increase of 2% when compared to last reports that international visitors spent an activities within, the United States during year. Travel receipts accounted for slightly estimated $127.3 billion in the first seven the month of June, a slight increase more than 62% percent of total U.S. travel months of 2015, a decrease of 1% when when compared to June 2014. In July, and tourism exports during June 2015. compared to the same period last year. international visitors spend on travel to, The price of passenger air Conversely, U.S. resident spending and tourism-related activities within, the transportation - down nearly 10% in Q1 abroad is up nearly 7% during the same United States was estimated at $18.1 2015 - continues to decline as fuel prices period (January through June), totaling billion, up 1% compared to July 2014. fall, ultimately leading to a 13% decline in about $89.4 billion on imported travel and Of this amount, travel receipts nonresident passenger fare receipts. tourism-related goods and services. -- travel and tourism-related goods and International visitors spent $18.7 services, totaled $11.6 billion during June,

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BY THE NUMBERS

WTO reports 21 million more international tourists in the first half of 2015

The number of international tourist forecast of an average growth of 3.8% a strong in Canada and Mexico (both +8%), arrivals grew by 4% in the first half of 2015 year set for the period 2010 to 2020. while for the United States indications according to the latest UNWTO World point to more modest growth. Most Tourism Barometer, released in mid- Regional Results destinations in South America (+4%) September. About 538 million international Europe, the most visited region in the reported sound results, in spite of Brazil’s tourists worldwide traveled between world, led growth with a 5% increase in outbound travel stagnation. January and June 2015, an increase of 21 international arrivals. The region benefited International tourist arrivals in the million compared to the same period of from a weaker currency in the euro area. Middle East grew by 5% consolidating the 2014. Growth was driven by the recovery in recovery initiated in 2014. Europe, Asia and the Pacific and the Central and Eastern Europe (+6%), while The limited data available for Africa Middle East each recorded 5% growth in Western Europe, Northern Europe and indicates that international tourist numbers international arrivals and the Americas Southern Mediterranean Europe each grew were down by 6% with a decline of 10% grew by 4%. Limited data available for +5%, higher than the worldwide average. in arrivals to North Africa and 4% in Sub- Africa points to an estimated 6% decrease Asia and the Pacific international Saharan Africa. in the number of international tourists in arrivals grew 5% in the first half of 2015, the region. At the sub-regional level, the led by Oceania (+7%). Destinations in Source markets show mixed results Caribbean and Oceania grew +7%, and North-East Asia and South-East Asia (both Outbound data for the first quarters of Central and Eastern Europe and Central +5%) reported rather mixed results, led by 2015 shows a diverse picture in spending America grew +6%. Japan (+47% through July) and Thailand abroad. UNWTO points out that even as (+30% through July). South Asia recorded In the BRIC markets, China and overall tourism arrivals grew, results by a comparatively modest 4% increase in India both started the year with double- destination were mixed. Safety and security arrivals after two years of double-digit digit growth in the first quarter, while the remain a global concern. Tourism was also growth. Russian Federation and Brazil reflected affected by economic volatility -- while International arrivals in the Americas slower economic growth in both markets advanced economies are recovering, grew by 4% in the first half of 2015, and the depreciation of the rouble and the emerging economies are slowing down. consolidating last year’s strong results. real against the U.S. dollar and the euro. Tourism demand has also been impacted by All four sub-regions recorded positive Demand from the traditional markets lower oil prices and currency fluctuations. growth, although with variations across of the United States, France, Sweden and According to the UNWTO forecast destinations. The strong U.S. dollar fueled Spain remains strong, but was weaker in issued at the beginning of 2015, robust outbound demand from the United Germany, the United Kingdom, Italy and international tourist arrivals are expected States. The Caribbean (+7%) and Central Canada. to increase by 3% to 4% worldwide for America (+6%) led growth. In North the whole year, in line with the long-term America (+3%), arrival numbers were

Travel bookings from China slow during stock market fall

Air travel bookings from China power as a result of the weaker Yuan. And travel during the Oct. 1-7 Golden slowed sharply in the second half of the The data from ForwardKeys, which Week national holiday is hardly affected year, especially to Europe and the U.S., monitors future travel patterns by analyzing by the stock market drop because bookings closely mirroring a decline in the country’s 14 million reservation transactions each were made months in advance. stock market, according to ForwardKeys, day, shows the biggest fall was in August But bookings to Europe and the U.S. in a report issued in mid-September. when growth in outbound bookings turned for November and December 2015 are Total outbound international bookings negative. lagging behind the same period last year. from China fell from a growth of 21% year Departures from China from The weaker Chinese currency is clearly on year, to just 1%, since the Shanghai September to December 2015 will still making an impact on travel decisions. Composite hit its peak. The slowdown was grow compared with the same period last compounded by lower Chinese purchasing year, the ForwardKeys analysis shows.

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17 October/November 2015 TFWA/FDFA Issue INSIDER

Cannes recovers from devastating flood to host TFWA World Exhibition

The devastating flood that hit the city Intelligence Retail, will present highlights of Cannes at the start of the month—with of the studies at the workshop which will widespread damage and 19 deaths in the be moderated by TFWA Conference, Côte d’Azur region-- put a damper on Research and Corporate Affairs Director preparations for the 2015 TFWA World John Rimmer. All registered show Exhibition & Conference taking place Oct. delegates are welcome at the session at 18-23 in the Palais des Festivals et des which handouts featuring summaries of the Congrès. research will be available. The TFWA Board, Management Committee and permanent staff issued Forty companies which have not immediate condolences to the victims previously exhibited at TFWA World and families affected by this tragedy and Exhibition & Conference, or who have offered their appreciation to Cannes Mayor been absent for a few years, will be David Lisnard, his teams, and the industry onstand this year. Newcomers include partners in Cannes who worked round the Roberto Cavalli, Diesel, Cruciani, Liujo, clock to ensure that our event – and others Eden Park and Mac Douglas in the under way –took place without disruption. fashion & accessories category; Fragonard Former New York Mayor Rudy Giuliani Indeed, the 2015 TFWA World Parfumeur and Moroccanoil in fragrances Exhibition will take place under a cloudier & cosmetics; Maurice Lacroix and Tous firmament business-wise than in the recent wide range of subjects from leading change with jewelry & watches; Freixenet and past, says the Association. Annual growth to economic and foreign policy. Crystal Head Vodka from the wine & in global duty free and travel retail has Keynote speaker Peter Long, Joint spirits category; Ricola and Tea Forte slowed from +18% in 2011 to just +4.3% CEO of TUI Group, brings a different set from confectionery & fine food; Cross last year as cooling Asian economies of experiences to his discussion of current and Cabeau in gifts & toys; Skross and combined with reduced passenger flows global travel trends, tourism and retail. TUI Akita Electronics; and Yunnan Tobacco among higher-spending nationalities such Group, headquartered in Germany, is the International joining the tobacco exhibitors. as Russians. world’s largest leisure, travel and tourism TFWA also welcomes back Ermenegildo One of the keynote speakers company and operates several airlines, Zegna, Elizabeth Arden, Lise Watier headlining the opening plenary of the hundreds of hotels, travel agencies, retail and other well-known brands which are TFWA World Exhibition & Conference on stores plus a dozen cruise ships. returning to the show after a short absence. Monday, Oct. 19, is well versed in leading Erik Juul-Mortensen, President “We aim to offer to our visitors an during a time of crisis. Former New York TFWA, will welcome both speakers and exciting portfolio of brands across the Mayor Rudy Giuliani, who led his city present his annual State of the Industry various product categories, introducing through the aftermath of the 9/11 attacks, address, summarizing progress, successes alongside all the major players a selection is an authority on crisis management, and challenges facing the duty free & travel of companies which are relatively new and has demonstrated his capacity for retail industry. to the sector. Unlike a category-specific providing guidance and support, rebuilding TFWA will also host two workshops exhibition, TFWA caters to the needs of morale and uniting citizens towards a at the Hotel Majestic: on Tuesday morning, many product sectors and is committed to common goal. His political perspective and the Market Watch is discussing South exhibiting the latest and the best across the successful business career are sought on a Korea, the world’s largest single duty free entire spectrum. We are confident that this & travel retail market, which is currently year’s exhibition will be a true reflection undergoing some considerable changes; of the dynamism of our industry,” said Wednesday morning the Inflight Workshop Alessandra Visconti, TFWA Vice-President will update delegates on the latest trends Corporate. in the inflight retail channel, featuring senior representatives from airlines and concessionaires. TFWA is also hosting its first-ever dedicated research workshop on Wed., Oct. 21, at 6 p.m. The one-hour workshop will present key findings of the Association’s most recent research studies, all of which are available free of charge to members. Peter Peter Long, Joint CEO of TUI Group Mohn, Owner and CEO, m1nd-set, and Alison Hughes, Research Director, Counter

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INSIDER

Dufry, Hudson Group among winners of 50 new Food and Retail concessions at Minneapolis-St. Paul International Airport; but Delaware North beats out WDF Group

Dufry Group and Hudson won new 72,000 square feet of terminal space by the MAC’s Review Committee, but the vodka exceptioNN elle retail concession contracts at Minneapolis- that were split among 14 batches, most recommendation was subsequently not St. Paul International Airport in August, of which include multiple venues and approved by the MAC’s Management & F i N i SHed WitH a Hi N t o F p R ecioUS coGNac but World Duty Free Group, which had terminal locations. The Metropolitan Operations Committee during its meeting originally been recommended as the Airports Commission (MAC), which owns on Aug. 3. preferred bidder for one of two 8-year and operates MSP, issued the request for The World Duty Free recommendation News and Convenience stores packages, proposals in March 2015. came under review again during the was replaced by Delaware North in the Dufry was approved for the award meeting of the full MAC board which took RFPs for 50 new food and retail concepts of the 10-year Duty Free/ Duty Paid place on Aug. 17, when an amendment under review. concession; and Hudson Group Retail, was made to substitute WDF for Delaware Minneapolis-St. Paul International LLC was awarded the other News and North. Key executives from both World Airport (MSP) offered a total of fifty Convenience store package up for bid. Duty Free and Delaware North and concession opportunities encompassing World Duty Free Group was recommended various suppliers and partners presented impassioned arguments regarding the reasons each should be awarded the contract. In the final vote, Delaware North was the approved winner of the package. Among the arguments against World Duty Free was a question of wage disparity and the acquisition of 50.1% of the share of WDFG by Dufry on Aug. 7, with the tender of the remaining 49.9% now underway. Companies submitted a total of 54 proposals, which were reviewed on the basis of its financial plan, merchandising, concept and design plan, Airport Concessions Disadvantaged Business Westfield unveils four new dining Enterprise program participation, and management and operations plan. The options at LAX T1 proposal with the most points for each batch was selected for recommendation. Westfield has unveiled four new The new lineup joins previously Of the seven Food and Beverage dining destinations at Terminal 1 at Los announced Rock & Brews, Be Relax, batches on bid, SSP America MSP and Angeles International Airport (LAX) Quiksilver, Treat Me Sweet, I Love L.A, Midfield Concession Enterprises, Inc. were as part of a $508 million overhaul and Brookstone. both approved for two packages each, with spearheaded by Southwest Airlines in In addition to Areas USA, Westfield Aero Service Group, Inc., Delaware North- partnership with Los Angeles World operating partners in Terminal 1 include Angel Food-Hell’s Kitchen MSP, LLC and Airports (LAWA). Crews (formerly Crews of California), LA- Caribou MSP Airport approved for one Managed by Areas USA, the new based Soto & Sanchez, Brookstone, Inc., batch each. venues include Reilly’s Irish Pub, The and Be Relax. Westfield plans to conduct Delaware North groups also won Coffee Bean & Tea Leaf, California Pizza two additional Competitive Evaluation two other Retail batches, in addition to Kitchen, and Deli & Co. Processes (CEP) at later dates, where the News and Concessions package, and When complete, Westfield’s new additional restaurants and retail stores will Pacific Gateway Concessions, LLC and retail and dining collection will span be solicited to join the Terminal 1 lineup. MSP Innovations, LLC were approved for 25,242 square feet – nearly double the Constructed in 1984, Terminal 1 is one batch each. previous program. The locations – which home to 15 gates and is served exclusively The expanded Duty Free/ Duty join six previously announced retail and by Southwest Airlines. In 2014, more Paid stores will be built in the locations dining concepts – are expected to open than 7.6 million travelers passed through currently filled by Twin Cities News progressively beginning later this year, with Terminal 1. Terminal 1 joins Westfield’s Connection on Concourse D, Subway and the total terminal redevelopment slated for LAX portfolio of Terminals 2, 3, 6, and World Passage/Duty Free in the airport completion in 2018. Tom Bradley International Terminal. mall, and the arcade in Terminal 2.

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INSIDER

NY’s LaGuardia Airport to get a $4 billion redesign

THE ORIGINAL MOMENT

Once called a “third world” airport building, which is operated by the Port plan, which will transform not only by Vice President Joe Biden, New York’s Authority, and replacing it with a larger the New York City travel experience LaGuardia International will now get a $4 structure located closer to the Grand but also the landscape of the city itself. billion redesign that will double the current Central Parkway, which will include new Delta has invested more than $2 billion operational space, New York Governor terminal space and a new Central Arrivals in infrastructure upgrades and passenger Andrew Cuomo announced this summer. and Departures Hall, and will link to enhancements at our hubs at LaGuardia and Cuomo was joined by the Vice Delta’s Terminals C and D. This represents JFK, and the initiatives announced today President in unveiling the vision for the the western half of the new structurally are aligned with our ongoing commitment comprehensive redesign, which will unified terminal. to providing an exceptional experience for transform the airport from its current The eastern half of the new unified anyone traveling through New York for terminal layout, comprised of multiple, terminal will be constructed on a parallel business or pleasure. We look forward to fragmented terminals, into a single, track by Delta Air Lines redeveloping its working in partnership with the governor’s structurally unified main terminal existing Terminals closer to the Grand design commission on a comprehensive with expanded transportation access, Central Parkway and connecting them to and complementary redevelopment plan significantly increased taxiway space and the new Central Arrivals and Departures that realizes our mutual goals and benefits best-in-class passenger amenities. Hall. all New York passengers.” “We are transforming LaGuardia into Ed Bastian, President of Delta Air Passenger disruption will be minimal a globally-renowned, 21st century airport Lines, said, “Delta commends Governor during construction, said Cuomo. that is worthy of the city and state of New Cuomo on his airport reconstruction York. It’s the perfect metaphor for what we can achieve with the ambition and optimism and energy that made this the Miami, and Florida, on track Empire State in the first place, and I want to thank our many partners for joining us to for record tourism in 2015 build the airport that New York deserves,” says Cuomo. Florida has received a record-breaking and growth of 5.79% through June – Construction on the first half of the 54.1 million travelers in the first half of putting it on pace for more than 43 million new unified terminal, expected to be a $4 2015, and the Sunshine State is on track passengers. billion project that creates 8,000 direct jobs to welcome more than 100 million annual MIA is also the state’s busiest airport and 10,000 indirect jobs, will be managed visitors for the first time ever. for international travelers, welcoming 70% THE NEW ICONIC by LaGuardia Gateway Partners, a new Miami-Dade County Mayor Carlos of all foreign visitors to Florida annually. public private partnership chosen by the A. Gimenez particularly cited Miami CAMEL PACK Port Authority of New York and New International Airport for the outstanding New international airlines and routes Jersey. performance, noting that of the 14.6 million starting up in the coming months include The new design, expected to break visitors who stayed overnight in Miami last expanded seasonal Miami-Helsinki service ground in the first part of 2016 with a year, 96% arrived at MIA. on Finnair; five weekly flights to Vienna 2019 opening date, will be accomplished MIA is having a record-setting year aboard Austrian Airlines; and daily Miami- by demolishing the existing Terminal B as well, with 21.9 million total passengers Istanbul service by Turkish Airlines.

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THE ORIGINAL MOMENT

THE NEW ICONIC CAMEL PACK

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DFW chooses DFASS JV to transform Terminal D duty free shopping experience

family, which Terminal D between Gates D22 and D23 has operated its All of the new locations should be installed landmark Luskey/ and operational by the end of calendar year Ryon’s western 2016. store in the Fort DFASS has been the lead partner Worth Stockyards in the incumbent Buckeroo Duty Free at since 1919. The DFW. other partners The new duty free operation is are Charles Bush part of the Airport’s overall plan for Consulting, new premium retail, spa and food which has owned and beverage concessionaires in the and operated first major update to the Terminal D concessions at concessions program since the terminal DFW Airport opened in 2005. New brands coming to Dallas/Fort Worth International for over 15 years; and MDT Strategic DFW include Hugo Boss, TUMI, Michael (DFW) Airport has selected DFASS-led Ventures/Innovative Strategies, a new Kors, Coach, Mont Blanc, Longchamp, TRG Duty Free Joint Venture for its new partner to DFW Airport. M·A·C, Jo Malone, Aveda, The Italian duty free shopping inside International TRG’s new duty free shopping main Kitchen by Wolfgang Puck and Café Terminal D. store will be located in the center of Izmir Mediterranean Tapas of Dallas. TRG will design and operate a total of six shopping locations covering nearly 20,000 square feet. TRG’s plans include a two-level, 13,000 sqf primary store that will DFW unveils new brand focusing on significantly upgrade the central area of the terminal, along with an executive lounge as customers and international growth well as smaller specialty stores and kiosks. “Terminal D hosts more than 7 million international travelers each year, and Dallas/Fort Worth International providing nonstop flights to more than as our international profile grows those (DFW) wants to project a more welcoming 200 destinations. DFW serves more than customers look for world-class experiences image. 63 million passengers a year, nine million and amenities,” said Sean Donohue, The airport has revealed its new brand more than in 2001. Seventeen cargo airlines chief executive officer for DFW Airport. with the tagline “Travel. Transformed.” provide service to the world’s major cargo “The new duty free experience at DFW This replaces the current brand that was hubs from DFW. will transform Terminal D and bring our introduced more than 14 years ago. Since The airport has created a new logo to customers an unparalleled level of luxury then, DFW says that it has opened its go along with the new brand image, one and service with high-end brands, VIP world-class international Terminal D, which it says encompasses the airport’s concierge services, cutting-edge technology Grand Hyatt and Skylink people mover, renewed commitment to elevating the and local flair.” and added over a dozen new airlines and customer experience. TRG’s duty free shops will feature new air service to five continents, evolving The logo is simple, clear and bold such international retail brands as from a national hub to a global superhub. with the DFW letters prominent. A key Ferragamo, Gucci, Dior, Chanel, Lancôme “DFW is a very different airport element of the brand design is the “journey and Burberry, selling a variety of clothing, than it was 14 years ago. With our line” which moves through the logo, cosmetics, electronics, leather goods, dynamic international growth, customers’ representing the role DFW plays in the jewelry, handbags, wine and spirits, expectations are different today than they journey of its customers, it says. specialty foods and more. were in 2001,” said Sean Donohue, CEO The new DFW brand will be rolled The concession will also feature of DFW Airport. “We recognized that our out over the next three years, starting with exclusive local brands, including Bohlin brand needed to evolve and match the employee attire, Skylink trains, ground Company western wear with Texas roots responsibility we have as a global hub transportation vehicles, signage and digital dating back to 1920, world-renowned Fort that drives global business and contributes media, all revealed on Oct. 1. Customers Worth distiller TX Whiskey and native $32 billion annually to the local economy. will ultimately see a completely redesigned Texas artist James Surls. A unique sculpture The new brand signifies our commitment look on DFW’s web and social media by Surls will suspend over the central store to our customers, positions us for the presence. to give shoppers a true Texas welcome. future and helps communicate our story of In addition to DFASS, the TRG joint transformation.” venture is comprised of locally owned Today, DFW is the fourth busiest CBI Retail Ventures, and the Luskey airport in the world in operations

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Miami International Airport transforms with expanded retail and innovative services A funny thing happened to Miami meal or last-minute gift item, International Airport as it strives to among other information. transform itself from a recognized Miami-Dade Aviation hemispheric hub to a global airport offering Director Emilio T. González travelers a world-class experience. The is also making huge strides in once stodgy, much maligned facility has his quest to transform MIA become one of the most modern and into a global hub. “Beginning innovative airports in the United States, this winter, MIA will proudly staying at the head of the line when it offer our customers more travel comes to introducing the coolest new choices to Europe than ever features, as well as an ever expanding before,” he said in a recent press selection of in demand retail and eating release. venues. MIA already offers Not only is MIA the first fully more flights to Latin America and the Leticia, a bi-lingual avatar is available 24 beaconized airport in the world, offering Caribbean than any other U.S. airport, hours a day to help passengers at MIA. airlines, retailers and other partners apps and recently added new service to Vienna, to trigger useful content to passengers and Austria and Istanbul, Turkey and the staff, but passengers entering the North and first direct flight to the Middle East from Miami to Oslo and Copenhagen beginning South Terminals are greeted by Leticia, a Florida aboard Qatar Airways. MIA will be next fall. bi-lingual avatar available 24 hours a day! offering direct flights to 19 cities in Europe The commercial offer is keeping up The super employee is a virtual assistant by November, including new Airbus A380 with the expanded air service, says Adrian powered by high-definition projection superjumbo service to London. For 2016, Songer, Chief of Aviation Business & imaging and surround sound to help Scandinavian Airlines (SAS) will begin Revenue Development at Miami-Dade passengers find their favorite pre-flight offering scheduled nonstop service from Aviation Department. Retail and food and beverage revenues bring in about half a billion dollars a year at MIA, and nearer to one billion when services such as parking are added, he says. Songer began a recent airport tour by showing TMI the numerous new retail locations that have been opened in Miami’s South Terminal as passenger traffic increases. The South Terminal houses a beautiful concessions hall that connects concourses H and J, anchored by one of the main Duty Free Americas duty free stores. “Terminal J is now 100% international traffic, and we want to offer these passengers the brands that they want. We are constantly monitoring sales trends and accommodating our passengers,” he says. In June, World Duty Free Group (WDFG), working in partnership with Master ConcessionAir (MCA), opened five new retail locations in the South Terminal concession hall in an area totaling of 3,531 sq. ft. The new units include a 1,005 sq. ft M·A·C store, a 992 sq. ft Desigual shop, a 913 sq. ft Coach boutique presenting the new look, and two units for Tumi and Tous averaging a little more than 900 sq. ft. World Duty Free Group also operates 10 other store locations in MIA. The smaller units, while not “inline” World Duty Free Group with Master ConcessionAir opened five new retail locations in MIA’s stores, are very well designed to make the South Terminal in June including a Coach boutique and a Tous unit. most efficient use of space and feature a

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“The economy is much more challenging this year than last year. And the current ‘recession’ in Brazil – Brazilians are our top international passenger --is having an impact on MIA’s commercial sales. But this month when we open up Turkish Air and Austrian Air, we add in a new group of customers. It will present us with a whole new opportunity. All these new flights are helping us, despite the global challenges.” Songer notes that new brands such as M.A.C and Michael Kors are very successful in drawing in shoppers to the concessions hall. Indeed, the airport management appears to be quick to take advantage of new opportunities whenever they appear, sometimes changing a brand or even a category: “We increased sales 600% when we changed a coffee shop into one that sold bagels and coffee,” noted Songer. The South Terminal Concession Hall features shops catering to the One of the most impressive new international passengers who travel from MIA. developments is the airport’s first “walk- through” duty free store in Terminal E curved top that disguise its freestanding clothing stores Hugo Boss and Cubavera, for DFA. The location was opened to nature. “The units are doing very well,” which have been in place since the South accommodate passengers who are flying says Songer. Terminal opened and continue to do British Airways’ Airbus A380 superjumbo In addition to the five new WDFG well: “Hugo Boss and Cubavera are both to London, which began service in October. stores, DFA has opened three new DF/DP operated by Faber Location, as part of a ten The “store” is located in previously unused specialty retail boutiques for Victoria’s store package that was awarded in 2006. space behind the new Air Margaritaville Secret, Tommy Hilfiger and Michael Kors The Cubavera store is staffed and operated restaurant. Using digital signage and a new in the South Terminal. by Perry Ellis,” says Songer. front, DFA has converted the space into a “These are brand new locations, in Bijoux Terner’s AdiXion concept, compelling and attractive shopping area, space that we did not open right away L’Occitane, Fire CZ and Taxco Sterling are notes Songer. because the traffic and the economy did not some of the other featured retailers in the A new development in MIA’s North warrant it,” explains Songer. “But with the concessions hall. Terminal specifically offers opportunities additional traffic, we opened the additional Although the global economy is for smaller local businesses and spaces and they are generating incredible impacting MIA’s international spend, disadvantaged business enterprises (DBE). sales. These are hot American brands that Songer says that since the airport is in a MIA’s North Terminal Marketplace, located the international customer loves.” constant state of growth and movement, between gates D-26 and D-29, will feature Next to the new DFA shops, we find sales are keeping up. locally themed concepts and will provide a

MIA opened duty free/duty paid retail boutiques in the South Terminal for Victoria’s Secret, Michael Kors, and Tommy Hilfiger (not pictured).

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MIA’s North Terminal Marketplace features locally themed concepts and a dash of Miami “flavor.” Duty Free Americas opened the airport’s first “walk-through” duty free store in Terminal E.

sampling of Miami’s diverse demographics, accessories designed to satisfy upscale more DBE firms, says Songer. MIA has from Caribbean and Mediterranean food to cigar aficionados. This is Cuban Crafters already been recognized as one of the top stone crabs and empanadas. The first two first airport location. The other concepts are five U.S. airports for awarding contracts to stores to open were a Miami Marlins store opening through the end of the year. new small businesses, according to an audit that launched last December, followed The North Terminal Marketplace is released in 2014 by the U.S. Department by Cuban Crafters, a premier local not only adding a dash of Miami “flavor” of Transportation’s Office of the Inspector boutique cigar vendor, that offers cigars, to the dining and shopping options at MIA, General. cigar cutters, cedar humidors, and other but it also continues MIA’s efforts to add

JCDecaux installs first large format digital screen at MIA; LVMH brands featured for first year JCDecaux has inaugurated the first (Concourse D), reaching all duty free “We are extremely pleased with the large format digital installation at Miami shoppers and departing passengers alike. installation of the new 10’x16’ double- International Airport. The screen went live on The screen is strategically situated sided LED advertising monitor that went July 29 and is currently running videos from right outside one of the main Duty Free live on July 29 near Gate D-25 in the a range of LVMH luxury brands –Christian Americas stores, although the objective middle of MIA’s busy Concourse D. The Dior Fashion, Hennessy, Louis Vuitton, is about reaching the global travelers jumbo screen, which weighs nearly 5,000 Bulgari, Christian Dior Beauty and Hublot. and trend setters, especially from South pounds, is almost impossible to miss for The double-sided 25 ft. wide screen America, and not just duty free shoppers, the 50,000 passengers who travel through is located in the airport’s North Terminal says JCDecaux. that concourse daily. The advertising is pre-sold for the upcoming year, and we are contemplating adding more screens,” Greg Chin, Communications Director at Miami- Dade Aviation Department tells TMI. The signage is expected to reach an average of 11 million passengers annually. “This is part of a new global trend to develop large iconic digital billboards in airports. This is the only unit of that size in Miami,” says JCDecaux. LVMH is no stranger to this type of high profile presentation. The luxury company brands have dominated JCDecaux’s giant Twin Screen installation at New York’s JFK Terminal 1 since it was installed in 2013.

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DEN adds Victoria’s Secret, and new Time Travel concept from DFASS

Denver International Airport (DEN) light displays has added two new specialty retail and sounds concepts to its concessions program. of passing Victoria’s Secret Beauty and Accessories overhead and Time Travel, a new retail store aircraft, offering passengers a wide range of along with luxury timepieces, eyewear and other custom fashion accessories, have opened on the B display cases Concourse Mezzanine level. and accents Time Travel, operated by the DFASS made from group, offers upscale brands including top genuine fashion designers such as Michael Kors, salvaged Nixon, Maui Jim, Prada, Ray-Ban, Furla, aircraft parts. Longines, Tissot, Chopard, Montblanc and The Tag Heuer. Product lineups are updated Victoria’s monthly to stay on the latest fashion and Secret store features an iconic, fashion- black-cherry fixtures, eye-catching focal technology trends. forward range of beauty products and walls surrounding the 796-square-foot DEN is Time Travel’s first flagship accessories including the brand’s best- space, and a video wall that broadcasts location and features stunning LED runway selling fragrances and travel-ready items footage of the Victoria’s Secret Angels. lighting in the floors, a sensory ceiling with such as signature lip gloss and body-care “Denver International Airport is products. It also carries elevating the airport experience by a unique collection providing passengers with a better of luxury accessories blend of local and national brands that that includes cosmetic travelers expect in a modern, world- cases, bags, small class airport,” said Bhavesh Patel, leather goods and DEN’s chief revenue officer. “The luggage; scarves; addition of Time Travel will provide sunglasses and a range passengers in Denver with a new of panties to complete shopping option that will enhance our the assortment. current lineup of retail concessions... Victoria’s Secret Victoria’s Secret at DEN will provide features a dynamic another globally-recognized brand that storefront with an further enhances the retail shopping interior that contains options for more than 53 million upscale elements like travelers each year.”

SFO welcomes flights to Delhi, Panama San Francisco International Airport daily non-stop service from Copa (SFO) announced that Air India will begin Airlines to Tocumen International Airport the first-ever nonstop flights between San in Panama City. From Panama City, Francisco and Delhi on December 2, 2015. passengers can connect daily to more than Air India officials said the airline plans to 55 cities across Latin America through launch service with three flights per week, Copa’s Hub of the Americas, including using Boeing 777 long-range aircraft. eight destinations in Brazil, including Sao This is the only nonstop flight between Paulo and Rio de Janeiro; nine destinations India and the West Coast of the United in Colombia, including Bogotá, Medellin, States. The new flight makes SFO the Cali and Cartagena; Santiago, Chile; fourth U.S. city served by Air India, joining Buenos Aires, Argentina; Lima, Peru; Connecting passengers at the Hub Chicago O’Hare, New York (JFK) and San José, Costa Rica; Guatemala City, of the Americas are not required to make Newark. Guatemala; and Managua, Nicaragua; immigration or customs stops and bags are In September, SFO also welcomed among others. checked to the final destination.

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DFA inaugurates new branded Dulles Airport boutiques

Washington Dulles International they represent builds on the success of our Miami International Airport, New York’s Airport celebrated the grand opening of luxury fashion and accessory departments JF Kennedy International and Hartsfield- its luxury retail wing in Concourse A and within our core duty free store and provides Jackson Atlanta International Airport as B on August 19, highlighted by the gala further selection to the airport’s travel retail well. “The airport authorities in the U.S. ribbon cutting of seven new luxury branded offerings,” DFA CEO Jerome Falic told were looking for ways to make their stores boutiques opened by Duty Free Americas. TMI. more appealing to travelers and are turning The new DFA stores include Michael “We are grateful to the Metropolitan to boutiques, more like in Asia,” Falic said. Kors, Kiehl’s, L’Occitane, Burberry, Washington Airports Authority and A new Estee Lauder/MAC store, Thomas Pink, Coach and Montblanc. Marketplace Development for sharing our managed by International Shoppes, and “We are excited about the recent vision and for giving us the opportunity to preppy clothing store Vineyard Vines, opening of our newest boutiques at Dulles create a fabulous shopping experience at managed by Hudson Group, have also International Airport. The addition of these the airport,” he continued. joined the lineup of new stores. seven boutiques and the world-class brands DFA has opened similar boutiques in

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Travel retail industry supports 2nd annual DFA Charity Golf Tournament to raise $250,000

From left: DFA’s Joseph and Dov Falic, Gabe Groisman, Leon and Jerome Falic symbolically hand over a check for $250,000 to Dr. Annette Bakker, William Brooks and Michael A. Divers of the Children’s Tumor Foundation at the conclusion of the 2nd DFA Charity Golf Tournament on Sept. 10 at the Weston Hills Country Club. Special recognition to Diamond Sponsors Pernod Ricard Travel Retail Americas, Clarins and Moet Hennessy Travel Retail, and Platinum Sponsor Philip Morris Duty Free.

The travel retail industry in North beautiful Weston Hills Country Club in skeletal abnormalities, learning America turned out in force to help Weston, Florida. disabilities, malignancies and debilitating support the 2nd annual Duty Free DFA completely underwrote the pain. Americas Charity Golf Tournament Sept. event, with 100% of the monies raised The disease affects all populations 10, raising $250,000 for the Children’s through sponsorships, raffle and auctions, equally and there is not yet a cure. Tumor Foundation, an organization and donations going to the charity. “We are real believers in giving back dedicated to ending Neurofibromatosis This year’s chosen charity recipient to the community and we are always (NF) through research. Last year, at the for the DFA Golf Tournament, the looking for charities in which we can inaugural DFA Charity Golf Tournament, Children’s Tumor Foundation, is tasked make a difference. NF is such a worthy the company raised over $180,000 for with finding a cure for NR — a genetic cause. There are so many people that Breast Cancer Research. disorder that affects one in every suffer from this disease, it is unbelievable. More than 200 golfers, a dozen 3,000 people and can cause tumors to We heard about it, researched it and are tennis players, and scores of other duty grow on nerves throughout the body. devoting this year’s proceeds to it. We will free suppliers and service providers Complications from NF can lead to find another charity to support next year,” participated in the 2015 event at the disfigurement, deafness, blindness, DFA CEO Jerome Falic tells TMI. “Thank you everyone here for making a difference. It is all about making the world a better place. We are all about giving back, but we couldn’t do it without you,” said Jerome Falic during his opening remarks at the cocktail/dinner. Falic gave special thanks to Jon Bonchick, for suggesting the idea of a charity event, and Dania Roig and the rest of the DFA staff, for their stellar results in organizing the event.

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One on One with Peter Brain, FDFA President Canadian land border business must adapt to its changing reality we are first-rate partners who can showcase not achieve economies of scale or complexity and retail their products exceedingly well in when it comes to such things as branding, accordance with agreed plans, so that they marketing, assortment planning, staff training will continue to invest and support our place and buying. Failure to work together could in the overall retail landscape. With many weaken our industry over time.” changes in personnel and organization within major suppliers, we have to ensure new staff Changing Tobacco are fully educated on the needs and expecta- The land border stores need to find tions of our customers. new products to replace the sales of tobacco, “In liquor we have seen massive which was once the cornerstone of Canadian changes through mergers and acquisitions, duty free, but is now around 25% of the land reorganizations, and changes in personnel border business. serving our industry. Some large suppli- “Given the slow erosion of tobacco in ers are attempting to implement consistent our sector, and competition in the cosmetics world pricing models that ignore unique segment, we have to improve our assortment Peter Brain, local market characteristics. This does not planning and buying in non-core product FDFA President work well at the U.S. land border due to its areas also,” he says. dynamic and highly price competitive nature. “Emerging tobacco laws and taxation The Canadian land border duty free Some new supplier sales staff are not well- levels also present a challenge. As tobacco business is being bombarded with serious versed in land border duty free versus airport taxes raise per carton retail prices, consumers challenges that threaten sales all along the and domestic markets, and what makes land are smoking less and in most cases they are northern side of the U.S./Canada border, border succeed. As with cosmetics, we must purchasing by the pack and not the carton. says Frontier Duty Free Association (FDFA) be able to offer compelling savings to prevent Also, illicit tobacco remains a challenge, President Peter Brain. a migration of sales to our larger domestic particularly in Ontario and Quebec where il- “The land border industry is struggling competitors. legal smoke shacks often sell off-brands well to maintain healthy land border duty free “We are trying to partner better with key below even duty free prices. The industry has savings levels in the face of several factors: suppliers who understand our market and are to better educate lawmakers that duty free is free trade agreements; aggressive price-based willing to support our business model, since perhaps the most responsible tobacco sales competition in the U.S.; massive distribution it is a great showcase for leading brands and channel, since the sites are not accessible by and availability of products through internet stable channel when the pricing is set right. unaccompanied minors, we sell only by the and specialty discount retailers; plus mergers, We need to demonstrate, like larger airport carton, customers visit infrequently mostly acquisitions and reorganizations within the li- operators, that we are aggressive and capable during periodic cross border holidays, and we quor and cosmetics segments. Our consumer of consistently executing solid retail sales follow the letter of the law without exception research completed by Deloitte in recent and marketing plans that will grow our busi- in terms of not selling to minors. We are not years solidly reconfirmed what we already nesses.” a market that potential new smokers even knew; that savings is the number one reason The growing sophistication of retail- consider due to these policies and locational for shopping duty free,” he tells TMI. ing is another development that is making it realities.” “As niche retailers with a limited prod- critical for all the land border shops to work uct breadth relative to mass-market discount- together, argues Brain. “These are all tough challenges. Wheth- ers and internet retailers, we have to ensure “What was our greatest strength when er we can rise to them is largely dependent our duty free offering continues to provide our sector started up in the 1980s – that we upon how much land border operators have trusted and compelling value. Otherwise, it were small-medium sized businesses each matured in 30 years, in terms of being able will become more and more easy for consum- run by aggressive entrepreneurs – is now be- to recognize that we are not competing with ers to transfer purchases away from duty free coming a weakness. Today with competitors one another, but rather are mostly competing to other sellers.” using big data, economies of scale in market- for the consumer against sophisticated U.S. ing and market coverage, immense purchas- domestic non-duty free retailers. Only by Partnerships key ing power to drive down costs, and other accepting this can we bind together and raise Brain says Canadian duty free opera- sophisticated strategies we will have to work our retail sophistication and marketing impact tors need to work more closely with their better together to keep up. Otherwise we can- to the level needed to compete effectively partners to give consumers the best shopping in today’s market. Only by demonstrating experience in their stores, reiterating how consistent high quality retailing will our sup- important low pricing is to generating sales pliers continue to view us as a first-rate retail on the border. partner worthy of support and investment to “We must convince our suppliers that advance their brand ambitions.”

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Currency opportunity. We also plan to reintroduce tourism policies such as our Road Trip The Canada/U.S. dollar exchange rate our Road Trip Travel Rebate Program in Travel Rebate Program, which will ben- will have a major impact on the border the 2016 federal budget process, and com- efit our members and Canadian tourism business attracting U.S. customers, says mence lobbying for this after our current in general.” Brain. election.” Working with the Retail Council of “Exactly how this will play out over The FDFA is addressing some of Canada, the FDFA recently completed the the next twelve months is uncertain. these challenges facing the industry at its first module of its national staff training Canadian traffic is already starting to semi-annual business summit, where lead- program. slow down at the border, particularly with ing retail consultants speak on emerging “This is one of several efforts to raise cross-border shoppers. U.S. traffic is pick- opportunities and best practices. our game through collaboration to achieve ing up but there will be a lag time due to “As we evolve we hope this will be- economies of scale. Our national marketing travel habits formed in recent years while come a forum where significant potential program is another example of trying to the U.S. dollar was weaker versus the collaborative actions can be discussed, get members to invest more significantly in Canadian dollar. We view summer 2016 vetted and started. The FDFA is still the proactive business management activities, as a significant growth opportunity for voice of the industry with our federal as is our semi-annual Business Summit. U.S. tourism if the current rate of about government, and through government Our business summit in particular brings 1.35 carries through to next summer. We relations we hope to both educate deci- in retailing experts to try and educate hope the Canadian Provincial and Federal sion makers on the needs and economic/ our members on current trends and best governments will step up tourism mar- social impacts of our sector for Canada, practices in retailing, which we should be keting efforts due to the current growth and effectively lobby for progressive adopting to stay relevant.”

FDFA celebrates 30 years and prepares for future

The 30 year-old Frontier Duty Free employees – developing a library of TRIP. Last year we lost out by a hair Association (FDFA) is celebrating its training for stores to choose from based on simply because of the oil crisis. We are anniversary at its annual convention in their needs. going into a federal election in Canada. But Vancouver from November 15-18, and will The National Online Duty Free whatever government is in place will be introduce a number of new initiatives as Test consists of 50 training questions hearing about Road TRIP.” it moves forward, says FDFA Executive online with training modules developed Director Laurie Karson. specifically for the test available for Summer Contest “We are thrilled to be back on the pre-learning. The employees receive a For seven weeks this summer, the West Coast to celebrate our milestone. We certificate for every course they pass. The FDFA’ s National Marketing Program developed a Sea to Sky theme this year, test is recommended for new employees launched a customer contest created to really celebrating British Columbia. We hired within the past six months, any new increase American/Canadian customer are hosting the welcome reception on a employees hired in the future, and existing knowledge of the Canadian duty free beautiful luxurious yacht dockside to the employees that managers would like to industry. The “Win with What You Know” hotel,” Karson tells TMI. have refreshed on the industry. contest had weekly prizes and a grand prize “We are hitting the attendance of $5,000. numbers we anticipated, even though 60% Road TRIP “We had 24,000 people enter, with of our suppliers are located in the GTA Karson says the FDFA will be around 60% Canadian and 40% Americans. (Greater Toronto Area).” lobbying the Canadian government again A lot of our stores engaged in the contest for the passage of its Road TRIP program, on a store level on social media, via twitter Online Training Program which was not included in the 2015 and facebook, etc.,” says Karson. To prepare for the future of the Canadian Federal Budget. “With the currency exchange we are industry, the FDFA has developed a Road TRIP (Travel Rebate Incentive seeing more Americans coming by, and partnership with the Retail Council of Program) is a three-year pilot program not as many Canadians. This is certainly Canada (RCC) to host and develop the first developed by the FDFA to help incentivize impacting the business. We have to educate ever online Canadian duty free employee U.S. tourism visits and related spending in Americans that ‘yes you should stop at certificate program. Canada by allowing U.S. travelers to have our duty free stores on your way home.’ RCC’s online duty free test, which their 5% tax rebates processed on the spot We have to start making this message part goes live on October 28, 2015, will assist at Canadian land border duty free stores. of their travel plan and engage this new stores in the career development of their As part of the program, travelers demographic who we haven’t seen in so employees, to ensure that basic land border would have been encouraged to “Take 5” long. If the currency exchange stays the duty free knowledge is consistent across and consider making a final purchase with same and we continue seeing Americans, the country. RCC will create a new training their rebate before returning to the U.S. the 2016 high season should be an exciting module each year for duty free land border “We are absolutely going after Road time.”

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30th Annual Convention 30e Convention annuelle “Canada’s Exclusive Duty Free Convention”

November 15 – 18 | 15 – 18 Novembre Westin Bayshore, Vancouver, BC, Canada www.fdfa.ca

35 October/November 2015 TFWA/FDFA Issue INSIDER

Importations Guay Ltée expands store to bring new brands to the Canadian border

Quebec’s Importations Guay Ltée is “Our goal was to give the store a allowed Importations Guay Ltée to bring renovating and expanding its main duty more modern feel. We work hard to keep in brands that they have never sold before free store in St-Bernard-de-Lacolle on the our selection current. Customers want a and devote more space to brands that are U.S./Canada border between Montreal shopping experience and in order to satisfy already performing well. and New York, allowing the retailer to this demand we need to expand the range “We were extremely proud to introduce new brands and expand the of products that we carry. Every category in introduce La Mer and Bobbi Brown. selection of others. the store is seeing an expansion,” he says. Some of the brands we are expanding Importations Guay Ltée’s Vice Both the retail floor and warehouse are Glenfiddich, Johnnie Walker and the President Justin Guay, whose family has space has been expanded 25%, bringing the Diageo scotch selection, Estée Lauder, Dior been involved in the duty free business for total size of the main store to 16,000 sqf, and L’Occitane,” he says. more than 33 years since the introduction says Guay. The entire store was redesigned, Guay expects the renovations to of land border duty free in Canada, says from fixtures to lighting, with construction impact sales positively. the renovations will modernize the main taking place throughout the second half of “People increasingly want a shopping store and give his customers more of an 2014. experience. Our store already had a “experience.” “Construction occurred behind the wider selection of goods than the average existing structures duty free store. We notice that despite so that our in-store this, people are still craving more. By renovations would expanding, it will provide customers not disturb the with more of what they desire and in turn clientele. The actual increase sales.” in-store renovations The expanded redesigned store began in April 2015, is one way Importations Guay Ltée is and we expect them adapting to changes in the Canadian land to finish in early border business since the store was built spring 2016.” in 1983. Guay says the “The land border reality is ever- renovations and changing and it is important to adapt expansion have quickly. We are constantly doing our best

TFWA/FDFA Issue October/November 2015 36 INSIDER

By expanding its main store to 16,000 sqf IGL was able to bring in brands it has never sold before such as La Mer and Bobbi Brown to accommodate both Canadians and works or that there might be an advantage travelers on Highways 15 & 87 between Americans despite the exchange rate. We to use U.S. currency. This is why our staff Montreal and New York, the company offer an advantageous cash rate, strong is always ready and willing to explain. It has two other locations: Boutique Hors negotiations and teamwork with suppliers happens often that a client is shown the Taxes de L’Est in Stanstead for drivers to create the best possible prices for benefit of the exchange rate and a few extra on Highways 55 & 91 between Montreal our customers. Educating people on the products are dropped in their basket as a and Boston; and Boutique Hors Taxes advantages that come with the current result.” de Stanhope in Stanhope for travelers on rate is extremely important. People don’t Besides the main store in St- Routes 147 & 114 between Sherbrooke always understand how the exchange rate Bernard-de-Lacolle, which welcomes and Boston.

2014 FDFA Annual Convention Highlights

37 October/November 2015 TFWA/FDFA Issue INSIDER

Expanded Blue Water Bridge DF updates product offering to better meet customer needs

Blue Water also wanted to create a luxury goods boutique and increase its offering in watches, jewelry, and accessories, says VP Sales Tania Lee. “We have listed watches from Swatch, Citizen, Michael Kors, Fossil, Bulova and Breo so far and the sales have been quite healthy. Sunglasses have seen the addition of Maui Jim, Guess and Harley Davidson, to name a few,” she says. The expansion began in the beginning of last year and took longer than anticipated due to the harsh winter, but was completed in August. “[The expansion] has allowed us to greatly increase our beer section installing new refrigerated units and devoting more area for craft beers that are the fastest growing segment of the beer market. We now have adequate space to cross-merchandise complementary products appealing to the beer drinker and expanded our Ontario Wines section Blue Water Bridge Duty Free has “Our warehouse space was very with personalized wall space for some key helped set the standard for the Canadian small for a store of our size, and afforded wineries. land border duty free business for three insufficient opportunity to buy in bulk to “We also have new and consolidated decades. This summer the award-winning achieve price savings, or to acquire goods space to build-out our jewelry and operator completed a major expansion so from China and elsewhere directly if accessories area with new watch and that it could devote more space to its best- opportunities arise. We also wanted more jewelry brands, sunglasses and fashions; selling categories. retail square footage to allow adequate and expanded our cosmetics department to The 10,000 plus sqf store located space for more appealing branded displays, accommodate new areas such as hair care. at the end of Highway 402 at the Sarnia and to rebuild some ‘non-core’ (i.e. not We also added a greatly enhanced tasting Crossing to Port Huron, Michigan is now liquor, tobacco or cosmetics) product lines station in our liquor section. In general the “significantly larger” than it was before, that would broaden the overall store appeal. expansion provided more floor space that says Peter Brain, Blue Water Special This includes products that will appeal to gives breathing space between displays to Projects Manager. core duty free overnight travelers, as well make the store more warm and inviting,” as non-traditional says Brain. day-trippers that The expanded store reflects Blue comprise 2/3 of Water’s strategy of leading with its master our total drive-by brands that offer compelling savings and traffic. can sell in large volumes. “One part of “This year we have focused on the plan is to have rebuilding Stolichnaya as our leading a marketplace of vodka brand due to the favorable pricing affordable products and savings versus other brands such that changes as Absolut. Most Diageo brands are frequently, to performing well due to their attention to keep our offering our market place needs in terms of pricing of impulse items and promotions,” says Brain. interesting to “We are aiming to introduce our travelers who cross customers in at a mid-priced level and the border more up-sell them by price and volume. Johnnie frequently,” says Walker Black is up over 30% as this Brain. was one of our high profile promotions Blue Water Bridge has focused on Stolichnaya as its leading vodka brand.

TFWA/FDFA Issue October/November 2015 38 INSIDER

throughout the summer,” adds Lee. few years (e.g. staycations in Michigan ‘Savings is the single most important With the expansion now complete, and New York have become common),” factor in choosing to shop duty free.’ We sales in September rose by double digits he explains. offer the suppliers a very sophisticated with healthy gains from liquor and and stable retail market and showcase incremental sales from the luxury area and Supplier relationships for their products, but consumers could the marketplace, says Lee. The Blue Water executives note that migrate to other less beneficial channels The exchange rate is another element these are challenging times in terms of if savings levels are allowed to decrease influencing shopper behavior. supplier relationships. precipitously.” To date, while there is some concern “We are spending considerable Adds Lee: “The digital world has that Canadian traffic will contract due to time and resources to educate suppliers resulted in the dissemination of information an unfavorable exchange rate, the U.S. on the needs and realities of the land in a fluid and rapid manner; we must offer customer base has more than compensated border market, which is characterized by a real duty free price advantage over the for any declines, says Brain. substantial shopping alternatives in the domestic markets for duty free to remain “It remains to be seen what will U.S. in close proximity to the border, and viable and relevant in today’s world. We happen over the winter months, but consumers who are very knowledgeable devote a significant amount of time to the strength of the U.S. dollar is an about U.S. pricing and competitor options,” price comparisons over all retail segments opportunity, and American customers says Brain. “Due to significant changes to make sure we remain true to our duty typically spend more on average than in management structure and personnel free pillars and most importantly, to our their Canadian counterparts. There at major suppliers, there is a danger that customers’ expectations. Duty free is not will be a lag time in the build-up of global pricing models could negatively a one-stop shopping center, so we must American traffic for a portion of the affect our market by eroding the savings make sure we offer savings and an upscale, market, due to pre-booked travel plans offered in our stores. Our Deloitte contemporary environment to appeal to the and travel habits developed over the last consumer research clearly showed that consumer.”

The Blue Water expansion has allowed the store to allocate more space to beer, fragrance and cosmetics, as well as jewelry and sunglasses.

39 October/November 2015 TFWA/FDFA Issue INSIDER

Canada’s international visitors up in 2014 Air Canada has China becomes 2nd largest overseas inbound market record August Total overnight international visitors conditions, FIFA Women’s World Cup to Canada increased to 17.1 million in events and favorable exchange rates for Air Canada’s August traffic increased 2014, up 3.2% over 2013, according to the U.S. visitors. 10.1% to 4.2 million passengers, setting an Canadian Tourism Commission. U.S. visitors represent Canada’s larg- all-time record month of passengers served Through the first six months of 2015, est inbound travel market, accounting for in Air Canada’s history. more than 2.9 million Americans arrived 70% of all international overnight visitors The airline reported a system-wide in Canada via automobile, up 9.5% over in 2014. Last year, the 11.5 million U.S. capacity increase of 10.4% and a load fac- 2014. visitors to Canada generated $7.1 billion in tor of 89.6% in line with last year’s record Overnight arrivals from the U.S. tourism receipts to Canada. August load factor of 89.8%. climbed for a seventh consecutive month in The number of Canadians making “I am extremely pleased to report June 2015 (+12.7%). Gains were registered overnight trips to the U.S. declined by strong traffic growth of 10.1% for the across all major modes of entry, including 13.8% year-over-year in 2014. However, month of August, a month during which by automobile (+15.9%), air (+7.7%) and the number of Canadians traveling to over- we served 4.2 million customers, more other modes of transport (+9.5%)—includ- seas destinations increased by 8.8%. than any month in Air Canada’s 78-year ing train, cruises, buses. In the first half of 2015, outbound history,” said Calin Rovinescu, President Buoyant visitation from the U.S. was trips by Canadian residents declined 0.9% and Chief Executive Officer. “Air Canada in part facilitated in June by good weather to 16,612,367. The number of trips south generated greater traffic in all markets of the border declined by 6.1%, while resulting in a load factor of 89.6% in line trips to other destinations increased with last year’s all-time record. These 8.9% relative to 2014. strong results demonstrate the effective- ness of our commercial strategy focusing China on international growth. The impact of the China was Canada’s second-larg- economic slowdown in Western Canada is est overseas inbound market in 2014, more than offset by strong demand in U.S. representing an estimated 11% of and overseas markets resulting in a 9.9% Canada’s overseas tourist receipts. An raffic growth year-to-date compared to last estimated 447,000 Chinese travelers year.” to Canada during 2014 led to another Air Canada reports traffic results on record year for China, representing a a system-wide basis, including regional growth of nearly 30% for arrivals and airlines from which Air Canada purchases 35% for revenue. capacity and Air Canada rouge. Buoyed by Approved Destina- Air Canada is Canada’s largest domes- tion Status (ADS), a favor- tic and international airline serving more able exchange rate, excellent than 190 destinations on five continents. air service and a relatively Canada’s flag carrier is among the 20 large population of Canadian largest airlines in the world and in 2014 residents of Chinese origin served more than 38 million customers. (1.3 million), the Canadian Air Canada provides scheduled passenger Tourism Commission expects service directly to 64 Canadian cities, 52 visitor growth to continue ex- destinations in the United States and 78 panding at a double-digit pace. cities in Europe, the Middle East, Asia, Since the beginning of Australia, the Caribbean, Mexico, Central 2015, China has emerged as America and South America. the second-largest overseas inbound market after the UK.

More passengers passing through Canada’s airports Canada’s airports continue to see sig- The year-to-date result is stronger than are reporting growth led by Vancouver nificant growth in the domestic, trans-bor- 2012 and 2013, which saw increases of (10.2%), Toronto Pearson (6.5%) and Ot- der and international passenger segments. 3.7% and 2.7%, respectively. tawa (5.0%), while international traffic is For Canada’s ten busiest airports, demand Among the 8 busiest airports in up at 6 of the 8 airports with Toronto Pear- over the first half of 2015 rose 4.1% Canada, Winnipeg (5.6%) and Toronto son leading the way at 9.5% and Montreal year-to-date, down slightly from the 6.1% Pearson (5.1%) achieved 5+% growth for Pierre Elliott Trudeau at 6.5%. year-to-date growth experienced through all segments in the first half of the year. the same period in 2014. For transborder flights, 4 of these 8 airports

TFWA/FDFA Issue October/November 2015 40 INSIDER

Air Canada offers free layovers to promote visits to Toronto Air Canada is offering free Toronto who have the time, as there is a tremendous Tourism Toronto. stopovers of up to one week on flights amount to see and do in one of the world’s Air Canada’s extended stopover offer booked between the U.S. and Europe or most multicultural and vibrant cities. This is available to U.S. originating international Asia with the goal of positioning Toronto is why we are pleased to offer our U.S. customers connecting through Toronto Pearson International Airport as a global originating customers flying on interna- while traveling from more than 50 U.S. cit- hub. tional connections with an opportunity to ies to Europe or Asia and can be applied to This special offer, developed with the stop over in Toronto for up to a week at no either the outbound or inbound portion of support of Tourism Toronto, is designed to extra cost to their Air Canada ticket so that the trip. Customers can stay up to one week encourage U.S. originating international they can explore and enjoy its diverse at- in Toronto for the same price as a usual customers to take advantage of their con- tractions,” said Benjamin Smith, President, roundtrip ticket – without any additional nection to experience Canada’s largest city. Passenger Airlines, at Air Canada. fees for an interrupted journey. The offer “As Air Canada’s global hub, Toronto “International travelers are always is valid for flights operated by Air Canada, Pearson is quickly growing in popularity as looking for added value and exciting desti- Air Canada Express or Air Canada rouge. the most efficient connecting point for U.S. nations and this offer provides both. It’s the The promotion is similar to one originating travelers to Europe or Asia. But perfect way to spend some time exploring developed by Icelandair, which offers free in addition to being extremely convenient Toronto – for the first time or the tenth stopovers in Reykjavik on all transatlantic for transiting international travelers, To- time – without any additional airfare,” said flights. ronto makes an ideal city getaway for those Andrew Weir, Chief Marketing Officer of Canadian duty free ARI opens MAC Cosmetics counter at sales up in July Montréal-Trudeau Airport Canadian duty free sales were up double digits in both airport and land border shops in July, according to the latest numbers from the Canadian Border Services Agency (CBSA). July airport sales were $33 million, up 18% versus July 2014. For the year, airport sales have increased 20%. Perfume, Cosmetics, Skincare, the number one category in Canadian airports with almost 35% of sales, jumped 23.5% in July. Alcohol, the second most popular category with 20% of sales, increased 17.27% for the month. Tobacco, with 10% of sales, was up 1.93%. Land border sales in July were up 12% to $18 million with “incredible positive growth for land border duty free stores,” says Laurie Karson, FDFA Executive Director. Year to date through July, land border sales are up 4% to $80 million. “Many of the land border stores are reporting more U.S. customers in the stores due to the current exchange rate,” says Karson. All regions except for Prairie, the small- Aer Rianta International North Amer- says ARI-NA General Manager Seamus est region, had double digit sales increases in ica (ARI-NA) has opened MAC Cosmetics Holmes. July. Ontario sales rose 14%, Atlantic/Que- in The Loop at Montréal-Trudeau Airport. “This listing is the culmination of a lot bec increased 11.7%, and Pacific sales were The new MAC counter is positioned of effort by the MAC and ARI-NA teams up 11%. July Prairie sales dropped 2%. in the heart of the International Store and and very much in line with our vision to Alcohol, the most important land border carries an extensive range of makeup, skin- bring new and exciting retail concepts to category with almost 38% of sales, was up care, fragrance and tools and brushes. The Loop at Montréal Airport. Customer 19.59% in July. Tobacco, with more than “We are delighted to be working with reaction to date has been very positive and 25% of land border sales, fell 3%. Perfume, such an iconic makeup brand, which will we look forward to a long and successful Cosmetics, Skincare (15.85% of sales) really enhance our existing P&C offering,” partnership with MAC Cosmetics.” increased 6.88% in July.

41 October/November 2015 TFWA/FDFA Issue INSIDER

Puerto Rico fiscal crisis hasn’t dented island’s tourism industry — so far By Larry Luxner

Jet approaches San Juan’s Luis Muñoz Marín International Airport over Laguna San Jose

$148.83 to $157.34 over the same period (compared to $194.66 for the Caribbean). The island added 931 rooms, and travel retailer Travelzoo named Puerto Rico one of the world’s “best cost-saving travel destinations” due to “increased infrastructure and competition” with its more expensive Caribbean rivals. Meanwhile, half a dozen new airlines began serving Puerto Rico, including Volaris (Mexico); InselAir (Aruba); Avianca (Colombia); Air Europa (Spain); Sun Country (Florida) and Seaborne Puerto Rico is $73 billion in the hole, 2013. That pumped $200 million into the (Caribbean), while another dozen airlines a sustained drought has led to severe water island’s troubled economy, sustaining 5,500 added new routes to their existing flights. shortages — at one point forcing some jobs, according to Ingrid Rivera Rocafort, “In November, Norwegian Airlines residents of San Juan to limit their showers executive director of the Puerto Rico will come with direct flights from Oslo, to two a week — and potential rival Cuba Tourism Co. Stockholm and Copenhagen, and in is about to open up the floodgates to U.S. The number of cruise passengers in December, Seaborne will add nonstop visitors. transit went up by 31.7%, while homeport service from Antigua,” said Rivera But tourism appears to be the island’s passenger volume increased by 12.1%. Rocafort, speaking at a Sept. 1 PRTC shining star on an otherwise bleak horizon. Hotel occupancy, meanwhile, edged presentation in San Juan. In fiscal 2015, a record 1.5 million up to 70.1% in fiscal 2015 from 69.8% In recent months, numerous media cruise ship visitors came to the island — up in fiscal 2014 (compared to average commentators have drawn parallels by 24.8% compared to the year-ago period occupancy of 68% for the Caribbean), between Puerto Rico — which recently and a 45.8% jump compared to fiscal while average room rates rose from defaulted on $58 million in debt and is facing the worst fiscal crisis in its history — and heavily indebted Greece, which narrowly averted getting kicked out of the 19-nation eurozone this summer and sparking a worldwide panic. But Clarisa Jiménez, president and CEO of the San Juan-based Puerto Rico Hotel & Tourism Association, said that when it comes to tourism, such comparisons are unfair. “Everything is working as usual. Because of our alliance with the U.S., we have security. You won’t see here what’s going on in Greece,” Jiménez told TMI. Despite Puerto Rico’s crushing $73 billion fiscal deficit, she said, “our tourism infrastructure is great, and many of our attractions, like El Morro, are under federal management, so if you come here you won’t even notice that the government is having problems.”

TFWA/FDFA Issue October/November 2015 42 AD_A4_Travel_Markets.psd.pdf 1 2/19/15 11:28 AM

CMY

43 October/November 2015 TFWA/FDFA Issue INSIDER

Tourists stroll on the Paseo la Princesa in Old San Juan.

strict travel ban against the island in 1962. This summer, Washington and Havana re-established diplomatic relations after a 54-year hiatus, and new regulations published in mid-September by the U.S. Treasury Department dramatically expand opportunities for U.S. airlines, cruise ship The eurozone crisis hasn’t dissuaded airfare from the U.S. mainland to Puerto and ferry operators to offer services to the tourists from visiting Greece, and the Rico is cheaper than to any other Caribbean communist island located only 90 miles same appears to be true of Puerto Rico, destination. south of Key West, Fla. which receives 3.2 million tourists every On the other hand, the island’s status “Cuba will be the new kid on the year, 87% of them from the U.S. mainland as a U.S. commonwealth means that the block and will definitely attract many (compared to 5.1 million arrivals in the federal minimum wage of $7.25 an hour visitors. However, we see this as an Dominican Republic last year, and just over applies to Puerto Rico. That translates into opportunity to work together to create 3.0 million in Cuba). a minimum salary of $290 for a 40-hour packages to attract longer-stay tourists to Yet virtually none of Puerto Rico’s week, compared to less than $60 a week for the Spanish-speaking Caribbean,” said tourists were affected by this summer’s an average worker at an all-inclusive resort Jiménez. “It’s competition, just the same severe drought, which forced authorities in the Dominican Republic. And in Cuba, way we have with all other destinations.” to impose water rationing in areas of weekly wages come to only $4 based on But local economist Elias Gutiérrez Bayamón and Isla Verde, near San Juan’s current official exchange rates. doesn’t see it that way. Luís Muñoz Marín International Airport. Another drawback is the high cost of “Obviously, the novelty factor is “Tourism continues to grow. I really electricity in Puerto Rico. Island residents going to play a role. So far, Cuban tourism don’t see the fiscal crisis having any impact currently pay 18¢ per kilowatt-hour, down has been mostly European and Canadian on the industry,” said prominent San Juan from 28¢/kwh in August 2014, when rates — two groups that are not particularly economist José Joaquín Villamil. “Cruise were slashed. Even so, that compares to an competitive with Puerto Rico. But there’s ship arrivals are way up, we have two new average 10¢ to 12¢ on the U.S. mainland. bound to be an impact, no question about hotels at the convention center, one new Thanks to a government subsidy, hotels in it.” hotel in Manatí and another new hotel in Puerto Rico pay less — but that subsidy A much bigger problem, he said, is the Bayamón.” may soon end, due to mounting pressure possible repercussion that may result in the On Sept. 21, the PRTC announced on the commonwealth to close its gaping event Puerto Rico cannot dig itself out of that two buildings fronting Ashford Avenue deficit. its current crisis. in San Juan’s oceanfront Condado district “Tourism has been identified as key to “If we lose credibility in the markets, would be demolished to make way for a Puerto Rico’s economic revival,” Jiménez financing projects will become even 164-room luxury hotel. The $30 million said, noting that tourism now accounts for more difficult, given our cost structure. project is being partially financed by the only 6% of the island’s $103 billion GDP. Then there will be postponements and Economic Development Bank for Puerto She said PRTC officials would like to boost cancellations, and increased competition Rico, which over the last five years has that share to at least 8% and possibly more. from Cuba,” the economist warned. awarded 44 loans worth a combined $47.4 Puerto Rico now has 15,000 hotel “If we keep listening to the lawyers million targeted to the tourism sector. rooms, up from 9,000 in the 1970s, though and trying to put off the bondholders and EDB President Joey Cancel Planas said the Dominican Republic and Cuba each capital markets, we’re going to lose the the hotel project “promises to be a great have around 60,000 rooms, and Jamaica day. Everything we’ve done over the last attraction for the Condado area and a 20,000. 25 years will go down the drain. We must strategic commitment to tangible economic “The D.R. is a different market than acknowledge that we have a debt to be development.” us, even though they’ve added higher-end served, with whatever resources we can put At LMM, Aerostar Airport Holdings properties,” said Jiménez. “We will never together. More than that, we have to invest LLC — the joint venture now operating be able to compete with larger destinations at a rate of $10 billion a year for the next the airport following its 2013 privatization in that regard because we’ll never have 12 years to get out of this mess.” — has spent $750 million to upgrade 60,000 hotel rooms here.” Tourism ultimately provides economic the 60-year-old facility over the last two But Cuba — which was off-limits to diversification “and keeps us in the ball years. It still has another $200 million in U.S. citizens for decades — is now more game,” said Gutiérrez, because sooner renovations to go, said Jiménez, adding accessible to Americans than at any time or later, “Cuba is going to become a that 27 airlines now fly into LMM and that since President John F. Kennedy imposed a problem.”

TFWA/FDFA Issue October/November 2015 44 47 October/November 2014 81 45 October/November March 2015 2015 TFWA/FDFATFWA/FDFA IAADFS/MHA IssueIssue Issue INSIDER

Cuba travel quickly ramps up as U.S. airlines, cruise ship companies plot new routes By Larry Luxner

View of the Havana skyline including the Hotel Nacional taken in August 2015. Photos by Raymond Kattoura.

On Sept. 30, a mostly empty Boeing That same day, the U.S. Interests Lines Ltd., both based in Miami, are 737 lifted off from Baltimore-Washington Section in Havana also opened for business planning Cuba cruises and have applied for International Airport bound for Havana — as an embassy, and on Aug. 14, John Kerry licenses from the Treasury Department’s ushering in the first regularly scheduled — the first U.S. secretary of state to visit Office of Foreign Assets Control (OFAC) air service between the U.S. and Cuban Cuba since 1945 — watched with emotion as well as export licenses from the capitals since the two nations broke as the Stars and Stripes went up over the Commerce Department. diplomatic ties more than half a century six-story mission fronting the oceanfront Norwegian CEO Frank del Rio said earlier. Malecón. his company would most likely use a The flight, arranged by Tampa-based For the travel industry, however, small ship of its Oceania brand, such as Island Travel & Tours, had been in the the real milestone came Sept. 21, when the 654-passenger Nautica, for its Cuba works for several years, and was the first the U.S. Treasury Department revised operations. in a new schedule of twice-weekly trips to its Cuban Assets Control Regulations “We have also engaged the Cuban Havana’s José Martí International Airport. and Export Administration Regulations. government in the discussions necessary At $695, the flight isn’t cheap; in early These allow some U.S. businesses to open to obtain their permission. I don’t know 2015, Southwest Airlines inaugurated representative offices on the island, and a timeline for any of these three licenses nonstop service from BWI to San José, authorize ferry and cruise ship service to to come through, but I am hopeful that Costa Rica — nearly twice the distance — Cuba — even in the absence of a formal they will come before the year is out,” Del for only $173 round-trip. end to the U.S. trade embargo. Rio said Aug. 3 in a conference call with Even so, the new BWI-Havana route Clearly, the industry isn’t waiting. analysts. “We believe that once Cuba opens is a big deal — and only the latest in a Carnival Corp. and Norwegian Cruise up totally, it’s going to be a real windfall series of business developments that have for the industry.” made headlines since last December, In July, Carnival announced it would when President Obama and his Cuban inaugurate Cuba cruises in May 2016 counterpart, President Raúl Castro, through a separate brand, utilizing a announced they would restore bilateral 700-passenger vessel. Others hoping to relations, ending one of the last vestiges of launch U.S.-Cuba cruises include Boston- the Cold War. based Pearl Seas Cruises, aboard its luxury Those relations were officially 210-passenger vessel Pearl Mist, and restored July 20, when Cuba’s flag was Chicago-based Haimark Line Ltd., using raised for the first time in 54 years over the the 210-passenger Saint Laurent for 10-day country’s mission in Washington, marking cruises. its transition from an interests section under Even more frenetic has been the Swiss protection to a full-fledged embassy. View from Hotel Nacional in Havana interest in passenger and car ferry service TFWA/FDFA Issue October/November 2015 46 INSIDER

from South Florida to Cuba. Routes from equipment and other gifts for their families Aviación fly to U.S. destinations, while Tampa, Port Manatee, Port Everglades, still on the island. In May, the Commerce Delta, JetBlue and other U.S. carriers Miami and Key West to Havana have been Department and OFAC granted approvals would be able to fly directly to Cuba. With proposed by no less than half a dozen for four Florida-based companies to larger airlines offering more seats to Cuba companies. offer Cuba ferry service: Havana Ferry than the charters can, prices are expected Spain’s Baleária — which already got Partners of Fort Lauderdale; Baja Ferries to drop by as much as 20%, said Eddie its U.S. licenses in July — has apparently of Miami; United Caribbean Lines Florida Lubbers, founder of the Havana-based moved to the front of the line for Cuban of Orlando, and Airline Brokers Co. of Cuba Travel Network. government approval after committing to Miami. CubaKat of Jacksonville hopes John McAuliff of the New York-based significant infrastructure investments at to launch similar service from the Florida Fund for Reconciliation and Development the Port of Havana, reported the Spanish Keys, though it has not yet received OFAC predicts that one year from now, “you’ll website El Confidencial Digital. permission to do so. have scheduled commercial flights to Cuba “With these two licenses, Baleária will Leonard Moecklin Sr., managing out of most major metropolitan areas” have all necessary permits needed from partner of Havana Ferries, said his either directly or connecting through U.S. authorities, and now only the wait for company’s fares would range from $300 airport hubs. authorization by the Cuban government to $350 roundtrip, while CubaKat wants to American Airlines alone expects to is left,” the company said in a July press use a cataraman, charging passengers $169 have flown 1,200 charter flights to Cuba release. It’s seeking to offer fast-ferry links each way. Bruce Nierenberg, president of in 2015, “more than any other airline,” it from Havana to both Key West and Port United Caribbean Lines Florida, said he’s said in a press release. It already offers Everglades near Fort Lauderdale, using a looking to offer passenger service to Cuba 22 flights from Miami, Tampa and Los standard-size roll-on, roll-off vessel. from Miami, Fort Lauderdale, Tampa and Angeles to five Cuban cities — Camagüey, Since 2011, reported Cuba Standard possibly Port Canaveral. Cienfuegos, Havana, Holguín and Santa Monthly, Baleària has operated the Last year, more than 100,000 Clara — via charter operator Cuba Travel Bahamas Express line, shuttling more Americans without family ties to Cuba Services of Oakland, Calif. than 130,000 passengers between Port visited the island. So far in 2015, that “We stand ready to offer scheduled Everglades and Freeport in 2014 — 18% number is up by more than a third — and service as soon as the United States and more than in 2013. The monthly newsletter, could accelerate even faster now that Cuba allow commercial flights,” said citing “people close to the negotiations,” OFAC has relaxed the rules on just who Art Torno, AA’s Miami-based senior said the Castro government has selected may travel there. Still, Americans comprise vice-president for international and cargo a nearly abandoned container terminal on only a fraction of the more than three services. the southwest side of Havana Bay as the million tourists who visit Cuba annually Many details need to be worked out, future site for a modern ferry terminal, (more than a third of them are Canadians including the sticky subject of judgments since it already has the necessary docking on cheap package tours). in U.S. courts that could lead to the seizure infrastructure, a large paved space for ro-ro While outright tourism is still a of Cuban-owned aircraft at U.S. airports operations and good connections close to no-no, individuals no longer have to to settle lawsuits. But once a commercial central Havana. fill out cumbersome forms explaining aviation agreement is signed, travel will To date, the Cuban government has the purpose of their travel. In addition, really take off. not specified how many ferry operators people who fall within the 12 allowed Vivian Mannerud of Airline Brokers it will permit, though it appears they categories of travelers — educators, those Co. said she easily expects 1.5 million won’t grant ownership and operations of a on humanitarian trips, clergy members, U.S. visitors to the island annually — even terminal to just one ferry company. journalists and the like — may now bring with the embargo in place — thanks to all Traveling to Cuba by ferry will cost along close family members. the changes now being enacted executive a lot less than by air, and passengers will The Obama administration, which orders. “I really thought I’d see it in my be allowed to bring up to 200 pounds of would like to see an end to the embargo lifetime,” she recently told Cuba Standard luggage — an important draw for Cuban- altogether, is pushing for a bilateral Monthly. “I’m shocked at the speed it’s Americans carrying clothes, electronic aviation accord that would let Cubana de moving.”

At the moment, Havana continues to maintain the charm that made it the most popular destination 50 years ago.

47 October/November 2015 TFWA/FDFA Issue INSIDER

Image Duty Free begins duty free onboard casino ship to Bimini, Bahamas – next stop: Havana as Europeans,” Goetgheluck tells TMI. In a positive move for duty free sales, the Bimini SuperFast has several smoking decks and permits smoking in its casinos – a big draw for smokers since tobacco is banned in many Florida casinos. The ship takes a leisurely three and a half hours to travel between Miami and Bimini, and the duty free sales begin as soon as the ship passes the three-mile limit. The Havana trip, once approved, will take place on the alternate days of the current Bimini trips, and take approximately ten hours, says Goetgheluck. “The ship and crew are ready to go. The Bimini SuperFast is only operating at half capacity right now,” he explains. “Genting – which also operates Miami-based travel retail company enter and exit the ship, and a full size 700 resorts and casinos in Malaysia, Singapore, Image Duty Free is about to set sail in the sq. foot main store carrying a full array of Manila, the UK and New York City and Caribbean where it will operate the duty liquor, tobacco, perfumes & cosmetics and building one in Las Vegas -- is very enthu- free concession onboard the Genting- confectionery. siastic about adding duty free to its onboard owned Bimini SuperFast casino cruise ship. The ship – with 842 berths and capac- offer,” he adds. The Genting Group already The 32,000 ton entertainment and ity for 1600 –offers onboard overnight has a strong presence in the cruise sector. casino cruise ship sails round-trip from Port accommodations for guests who wish to It owns Asia’s Star Cruises, has a stake Miami to the Resorts World Bimini three stay onboard during the stopover in Bimini. in Miami-based Norwegian Cruise Line times a week. The ship may also be the first The crew of 200, most of whom are Philip- and completed the acquisition of Crystal ferry/cruise ship to be sailing from Port of pino, are also a good source of potential Cruises earlier this year. Miami to Havana, Cuba. The company has shoppers. Image Duty Free, which was founded already gotten the green light from the U.S. The Bimini SuperFast transported in 1993, is experienced in operating inflight government to extend its itinerary to Cuba more than 300,000 passengers from Miami sales, as well as in border shops, and cruise and is now just waiting for final approval to to Bimini between January and July 2015: terminal and airport stores. come from the Cuban government. “Twenty-five percent of the passengers “This new venture expands our Once the Cuban government gives the come from the United States, but there are footprint in the region in an operation not go ahead – which could be as soon as the also a large number of Latinos, especially subject to currency swings…which is a end of this year, according to Image Duty from Brazil, Colombia and Mexico, as well blessing these days,” says Goetgheluck. Free Managing Director Antoine Goetghe- luck – the ship is ready to begin service to Havana immediately. For now, however, the ferry brings several thousand people a week to the Bahaman island just 50 miles off the South Florida coast. Malaysian based Genting – one of the world’s largest Destination Resort operators -- opened the 750-acre, 500-room Resorts World Bimini luxury Caribbean beachfront resort in July 2013, on an island famed for its diving and fishing. The Bimini SuperFast also transports guests to the new 350-room Hilton on Bimini, which opened this past June. By mid-October, Image Duty Free will have two stores on the beautifully refur- Rendering of the 700 sqf main duty free shop that will carry a full array of bished ship, a 200 sq. foot “last minute” liquor, tobacco, perfumes & cosmetics and confectionery. store strategically located where passengers

TFWA/FDFA Issue October/November 2015 48 49 October/November 2015 TFWA/FDFA Issue Distribution for the Caribbean and Americas Duty Free: [email protected] INSIDER

Downturn in Latin America impacts entire region

Enjoying nearly 10 years of uninterrupted economic growth, the duty free business in Latin America reaped the benefits of growing economies throughout the region. Indications of a slowdown surfaced more than a year ago. Raw material prices, a principal element in Latin American exports, have been falling since early in 2014, leading to currency instability and faltering foreign currency reserves. The Chinese economy, the biggest export market for most Latin American countries, has slowed substantially on previous years. Tellingly, the optimism of the last decade turned to pessimism in only a few short months. And the recent devaluation of the Chinese Yuan has made medium- and long-term forecasting even more uncertain. How will travel retail be affected by the slowdown? TMI’s John Gallagher offers a market by market assessment.

Brazil falls from grace austerity measures in a bid to reduce return on its investment. Brazil, the seventh-largest economy in the fiscal deficit, letting go many public Domestic airport traffic has suffered the world and the biggest in Latin America, employees and cutting unemployment as the slowdown has intensified. Sao is suffering a dramatic slowdown. After benefits. The austerity measures have Paolo Guarulhos, the biggest airport in nearly a decade of solid economic growth, split Dilma Rousseff’s Worker Party, with Brazil, posted 12.4m passengers for the the speed with which the economy has dissidents calling for the government to first six months of 2015, down 1.5% fallen is staggering. reverse the strategy and increase public compared to the same period the previous High inflation, dwindling consumer spending to boost the economy. year. International passengers, however, confidence, lower domestic consumption, The austerity measures also included increased 2.8% to 6.6m. falling industrial investment and the increased taxes for certain imported Next year, the city of Rio de Janeiro never-ending Petrobras corruption and products, with perfumes and cosmetics will host the Summer Olympic Games. embezzlement scandal were contributing included in the first batch of categories in As happened during the FIFA World factors to the 1.9% contraction in GDP in early 2015. In September the government Soccer Cup in 2014, the world will be the second quarter of 2015. This is clearly announced additional tax increases for all looking closely at Brazil. Some of the bad news for the travel retailers operating wines and spirits, which will take effect in major construction companies involved in in Brazil and its borders. The slump in December. preparing the country for the games have value of the Real, trading at 3.70 to the While this is bad news for domestic been indicted in the Petrobras scandal U.S. Dollar at the beginning of September market consumers, it can be an incentive causing worry this could slow down compared to 2.35 just over a year ago, also for travelers to buy more in duty free completion of projects needed for the negatively impacts duty free operators stores. Olympics. Several leading members of throughout Latin America. Brazilian Unemployment has risen rapidly Dilma Rousseff’s Workers’ Party have travelers are renowned big spenders when to 8.3%, up 1.5% from 12 months ago; also been indicted. While the worst of the they travel but exchange rate volatility inflation over 12 months is running above scandal may be over, some officials are has affected their purchasing behavior and 9% - twice the government’s target. These still calling for the impeachment of the the knock-on effect is seen throughout the factors can negate the progress that Brazil President to assess her role in the scandal. continent. made in the boom years. More worryingly, No one doubts the potential of the At the end of August, the IBGE, the analysts predict 2016 will be another country and the potential for Brazilian Brazilian government statistics office, stagnant year at best, and say growth might industry, agriculture and tourism. But there confirmed the fall in GDP for the Q2 2015, not return until 2017. is no evidence the situation is improving and Brazil was formally declared to be in Dufry, the biggest travel retailer right now. recession (given the technical definition of in Brazil, reported flat sales for the first a recession being two consecutive quarters half of 2015 for the Americas II region October election increases uncertainty in of economic contraction). The official (Brazil and Bolivia), when measured Argentina figures were actually bleaker than expected in Reais. But sales fell 23% when During the first half of 2015, the and the announcement came on top of measured in U.S. Dollars, underlining the Argentine government and Central Bank news that the fall in Q1 had been revised weakness of the Real during the first half appeared to be successful in controlling the downwards to - 0.7%. According to of the year. Dufry is less exposed to the grey market dollar, albeit by using scarce official figures, economic activity in Brazil vagaries of the Brazilian market given the foreign exchange reserves to push down is now estimated to be 2.6% lower than one company’s acquisitions in recent years, the price. Since the primary elections held year ago. but nevertheless the Americas II region in early August, the situation has changed Steeper interest rates - currently accounts for 11% of company sales. rapidly however, and the gap between 14.25% - have also significantly impacted The Swiss-based giant has refurbished the official dollar and the “blue” dollar the slowdown, leading to a serious stores and added additional retail space which had shrunk to around 40% rose reduction in consumer spending, one of the throughout the country, especially in Sao substantially and is now around 70%. drivers of the Brazilian economy in recent Paolo and Brasilia, but it could be a few At the time of writing, the official rate years. The government introduced stringent more months until it realizes a significant is at 9.20 pesos to the dollar and the “blue

TFWA/FDFA Issue October/November 2015 50 OF SWITZERLAND

OF SWITZERLAND

SWITZERLAND

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dollar” has moved out, to float in a band most votes in the first round of voting but is travelers making up for the reduction in the between 15.50 and 16 pesos. It is extremely unlikely to garner the 45% share he needs number of Brazilians. difficult to predict where the dollar will be to avoid a runoff vote. The final round of when you read this but some opposition the Presidential elections is scheduled for Optimism on the Pacific Coast economists predict that the dollar could November 22. If the second most voted Performance in other parts of South move to around 20 pesos and stay there candidate, likely to be Buenos Aires Mayor America is not as complicated as in if Daniel Scioli, the candidate favored by Mauricio Macri, is able to deal with the Argentina and Brazil. Economic growth current president Cristina Fernandez de other opposition candidates, the final slowed in the Pacific markets of Chile, Kirchner, wins the October election. If outcome could be very close. Colombia and Peru but is expected to reach victorious, Scioli is likely to continue the Macri and his economic team, which 2.4%, 3.2% and 3.6% respectively. While current policy of limiting the availability includes economist Carlos Melconian, lower than previous years, this growth is of foreign currencies and discourage the a regular speaker at the annual ASUTIL still quite solid. use of credit cards for purchases abroad conference, promise that they will remove Given the relative health of the -- a 35% surcharge has been added on all exchange controls as soon as possible Pacific economies, passenger throughput international transactions when bank cards if they win. In that case, Macri will likely has also been solid at the leading airports. are used. unify the official and grey market exchange International traffic in Santiago was up Argentina’s general economic rates, although at what rate remains to be 10% in H1, although domestic traffic performance remains unclear. The financial seen. Macri says he will let the market was flat. Lima Airport Partners reported figures issued by Indec, the government’s decide the true value of the Argentine a growth of 8.7% in passenger numbers statistic agency, are suspect. The currency. at Jorge Chavez International Airport in government claims that inflation is running The unreliable reputation of Peru during the first six months of the year at just over 14%, while independent Argentina’s Government statistics has and Opain, the holder of the concession analysts report the rate is closer to 27%. spread to the figures issued by airport at Bogota’s Eldorado Airport in Colombia However, the government has allowed pay manager Aeropuertos Argentina 2000 confirmed international passenger growth increases this year of between 25% and (AA2000), which reports monthly air of 11.25% along with an increase of 12.6% 30%, which is probably a more accurate passenger growth of between 4% and 6% in domestic travel during the same period. indicator of the real inflation rate. The compared to 2014 (except July when 10.3% Mexico, the second biggest Latin government claims that the economy is was posted). The strong performance at American economy after Brazil, is also performing robustly with increases in Aeroparque and flat figures at Ezeiza forecast to grow by 2.5% in 2015 and could GDP of between 1 and 2 points in the indicate that domestic travel is performing improve if the U.S. economy continues first 2 quarters of the year. Consumer strongly, and international traffic is on par to accelerate. Passenger traffic at Mexico consumption is strong due to extended with last year. City’s Benito Juarez International Airport credit terms offered by retailers and banks Duty free sales in the country have jumped 14% during the first seven months but domestic and foreign investment is held up when measured in local currency. of 2015 compared to the same period last at low levels. The consensus is that GDP Savvy travelers exchange Dollars and Reais year. Domestic traffic was up 14.9%; with growth for 2015 will be around 0.5% -- on the grey market, ensuring a bonus when international traffic up by 12.2%, good and that figure depends on a recovery in they buy in the airport and border stores. news for Dufry and Wisa Group, the two commodity prices TMI understand that both InterBaires and anchor duty free operators at the country’s The outcome of the election is far London Supply enjoyed modest growth biggest airport. from certain. Scioli is likely to have the in the first half of 2015 with Argentine

Asuncion tender details expected in October

The Paraguayan government is 30 year period and that the new 32,000 ment is also considering converting part expected to announce the tender details sqm terminal will require an investment of the building into a retail shopping to build a new terminal at Asuncion’s in excess of $ 150m. The new project facility. Silvio Pettirossi Airport in early Octo- will increase the airport’s capacity from At present three travel retailers, ber. President Horacio Cortes’ govern- just over 1 million to 3.2 million pas- Bright Star, Mannah Duty Free and Fla- ment has introduced new legislation to sengers and will be situated adjacent to mengo International operate arrivals and encourage private/public partnerships the current terminal. departures stores at the airport, but it is to improve the country’s infrastructure. Paraguay reports that 567,894 pas- not clear whether the current contracts The new terminal will be the most vis- sengers had used the airport as of the will carry over to the new terminal, ible part of the program. end of August, an increase of 0.1% on when it is eventually built. Luis Aguirre, president of Para- the same period in 2014. JG guay’s civil aviation directorate DINAC, The current terminal will be used said that the tender package will be for a for new offices for DINAC; the govern-

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New round of airport privatizations in Brazil The Brazilian government in Septem- confirms that it will need to look at a new are being analyzed and reports say that ber approved plans to extend the country’s structure next year to maintain profitabil- the Infraero is considering a tender for all airport privatization program, adding For- ity and the finance needed to guarantee the space to one company, which will then taleza, Salvador, Florianópolis and Porto the renovation of smaller airports in its sublet to interested retailers. Alegre airports to a new round of tenders network. After the next round of privatiza- Minister Padilha stressed that the scheduled to take place in Q1 of 2016. tions, the state controlled company will government does not intend to concession Brazil began its privatization pro- only have three major airports left in its the operational part of Congonhas “under gram with Brasilia, Sao Paulo Guarulhos network: Sao Paolo – Congonhas (18.1m any circumstances.” and Viracopos – Campinas in early 2012, passengers in 2014), Rio de Janeiro - San- “But that does not mean we cannot followed in late 2013 with the sale of Belo tos Daumont (9.9m) and Manaus (3.4m). make a management concession of the Horizonte - Confins and Rio de Janeiro – Eliseu Padilha, the Minister for Civil commercial area to a retail specialist,” he Galeão. Aviation, said, “With this round of privati- stated. The confirmation of the new ten- zations, we are completing the transfer of Part of the restructuring may include a ders comes at a time when the Brazilian the management concession of our biggest partial sell off of Infraero’s shareholding in economic crisis continues to worsen with airports and we now need to look at a new the five airports already privatized. Infraero demands that the Dilma Rousseff govern- structure for Infraero to guarantee its role still holds 49% stake in these airports but ment must reduce the fiscal deficit. as the guardian of the whole network.” the fiscal needs of the Brazilian govern- The Brazilian government estimates Padilha confirmed that the new struc- ment could force a sale of part of this that in the short term, R$ 2.5 billion needs ture will consist of two companies, one to shareholding. Complicating the situation, to be invested in Porto Alegre (8.4m pas- look after the Infraero stakes in the five most observers consider that the tender sengers in 2014) , R$ 3 billion in Salva- airports already privatized and any stakes winners overpaid for the concessions mak- dor (9.2m passengers), R$ 1.1 billion in in future privatizations and another to look ing it difficult for the government to put a Florianópolis (3.6m passengers) and R$ 1.8 after the whole network. true value on the remaining Infraero stake. billion in Fortaleza ( 6.5m) to maintain the TMI understands that Infraero is The Brazilian financial press specu- level of service. considering a proposal to launch a tender lates that if the restructuring goes ahead At the same time, state controlled to redevelop the commercial area at Sao German airport operator Fraport may seek airport operator Infraero reports that its rev- Paolo Congonhas, the domestic airport for a stake in Infraero, and become Brazil’s enues and profits have fallen dramatically Brazil’s biggest city, in a bid to bring more airport management partner to develop the since the original privatizations. Infraero income into the company. Several options future strategy of the network. JG

Fortress to take stake in Viracopos Campinas?

New York-based investment man- in the region of R$ 400M for the stake, controlled Infraero is a 49% shareholder ager, Fortress Investment Group LLC, is but the weakening Real seems to have in the airport and may take this oppor- leading a trio of investors to take a stake allowed Fortress to up the ante. Creditors tunity to dilute its stake, according to in Brazil’s Viracopos Campinas Airport. are studying this bid along with others, Brazilian aviation analysts. The U.S. fund, along with Brazilian including one from French infrastructure The Aeroportos do Brasil consor- partners construction company WTorre specialist Vinci Airports, a 45% stake- tium (TPI, UTC and French controlled SA and Sao Paulo-based financial advis- holder in the Nuevo Grupo Pudahuel, Egis Avia) won the right to manage and ers Invixx, offered R$ 564M to purchase which took over the management of develop Viracopos in February 2012 the 23% stake held by the troubled UTC Chile’s Arturo Merino Benitez Airport in when they offered R$ 3.820M to control engineering giant. UTC has been trying Santiago in October. the 30 year concession. Renovation and to restructure its balance sheet since get- Triunfo Participações e Investimen- construction work has been significantly ting embroiled in the Petrobras corrup- tos – TPI, UTC’s partner in the Aeropor- delayed due to financing problems and tion scandal. tos do Brasil consortium, has the right to disputes with ANAC, the Brazilian Civil Market analysts had expected bids match any bid for the UTC stake. State Aviation Authority. JG

Traffic up in Chile International passenger traffic in all traveling through Arturo Merino Benitez Aéroports de Paris and Vinci Airports along Chilean airports was up 10.7% during the Airport in Santiago. Domestic air traffic with Italian construction company Astaldi), first eight months of the year, according was stable with 6.5m passengers using the took over management control of the to the country’s Ministry of Transport & network, a similar figure to 2014, indicat- airport from SCL, who had been in control Telecommunications. More than 5.4m ing the slowdown in the national economy. since July 1998. Construction of a new international passengers used the Chilean On October 1 the Nuevo Grupo international terminal is expected to begin airport network during this period, almost Pudahuel Group (French airport operators in 2016. JG

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Travel Retail comes out in force in support of Estée Lauder’s annual Breast Cancer Awareness initiative

campaign.com or unique post on Instagram or Twitter with #BCAstrength between October 1, 2015 and World Cancer Day on February 4, 2016, The Estée Lauder Com- panies will donate $25 to fund a half-hour of breast cancer research through the Breast Cancer Research Foundation. The goal is to fund up to 500 research hours ($25,000) through the support of the global digital community, says the company, and is just one part of ELC’s global fundraising efforts to raise $6 million in support of breast cancer research, education and medical services this year. Every action, and every dollar, can make a difference, says ELC. The Travel Retail industry around the world has been a strong supporter of the program for the 20 years it has been in existence. This year, on October 1, the first day of Breast Cancer Awareness month, the The opening day of Breast Cancer Awarenesss Month was celebrated at London Heathrow Estée Lauder Companies, London Heath- Airport Terminal 2 with a high profile celebrity exercise event. row Airport and World Duty Free Group partnered together to stage a high profile The 2015 Estée Lauder Companies Together, these actions have sparked special event to bring public attention and BCA Campaign is empowering women, a global movement, enhancing awareness support to the BCA program. men and families around the world to take and raising more than $58 million to sup- Travelers through Heathrow’s Ter- action to help defeat breast cancer. Through port global research, education and medical minal 2 were invited to join a series of a universal call-to-action --“Every Action services. express fitness classes.The exercises were Counts. What’s Yours?” --The BCA Cam- “This year, The Estée Lauder Com- hosted by Russell Bateman, founder of the paign invites people to share all the mean- panies’ Breast Cancer Awareness (BCA) Skinny Bitch Collective (SBC) exercise ingful ways they take action on BCAcam- Campaign focuses on action, which leads project, with his signature strengthening paign.com and social media channels, and to impact, a belief that was so important and empowering movements. House of support lifesaving breast cancer research to my late mother, Evelyn H. Lauder,” Voga offered a dynamic fusion of Yoga and by making a donation to the Breast Cancer commented The Estée Lauder Companies “Vogueing”, stretching and posing exer- Research Foundation (BCRF). Executive Chairman William Lauder. cises. Zumba Fitness instructors brought Over the past two decades, The Estée “When my mother first began bravely a mix of low-intensity and high-intensity Lauder Companies’ Breast Cancer Aware- speaking out about breast cancer more than moves for an interval-style, calorie-burning ness (BCA) Campaign has brought together two decades ago, few people were talking dance fitness party. people in more than 70 countries to help about it openly or publicly. Dedicated to According to Cancer Research UK’s defeat breast cancer in their own unique the belief that knowledge is power, she website, 31 studies on physical activity and ways—from sharing stories about their ex- worked hard toward her vision for a world breast cancer found that women who did periences with the disease to participating without breast cancer and in the process the most activity had a 12% lower risk of in fundraising and awareness activities. she became a voice for women, men and developing breast cancer compared with families everywhere who had been touched the least active women. The analysis also by the disease.” showed that the more activity a woman The 2015 global BCA Campaign print does, the more she can reduce her risk ad showcases the ways that people around of breast cancer. The Heathrow program the world are taking action -- big or small aimed to raise awareness of the benefits of --to fight against breast cancer. Using a healthy lifestyle to travelers. Social Media, the 2015 BCA Campaign The event took place in Heathrow Ter- also invites people around the world to minal 2, where a 90 ft pink ribbon has been share how they are taking action to bring us installed on the Terminal building windows closer to a world without breast cancer. throughout the month of October. For every action submitted on BCA- Elizabeth Hurley, the BCA Global Am-

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bassador, has been passionate about Evelyn ing with The BCA Campaign, I remember eral limited edition products in support of Lauder’s commitment to raise awareness of Evelyn telling me, ‘Women all over the world education and medical research. In addition the disease, and sums up the progress made to are dying and nobody’s talking about it.’ The to its now iconic pink ribbon Dream Pin, date through the program. fear that once surrounded breast cancer is the 2015 collection includes the Evelyn “This year’s BCA Campaign is an op- being replaced by hope and inspiration, as we Lauder and Elizabeth Hurley Dream Pink portunity to unite millions of women, men all continue to join together and take action in collection, featuring three mini Pure Color and families worldwide in the simple, but the fight against the disease.” Envy Sculpting Lipsticks in a pink bag powerful idea of taking action, and showing As part of the fund-raising efforts of with a cross-body strap, and Resilience Lift the larger impact that all of our individual the BCA campaign, the Estee Lauder Com- Night Firming/ Sculpting Face and Neck actions can have. When I first began work- panies Beauty Brands have produced sev- Crème with Pink Ribbon Bracelet.

Tommy Hilfiger names tennis star Rafael Nadal as global brand ambassador; introduces TH Bold fragrance for men

Tommy Hilfiger has signed Spanish currently holds a record for his nine French including pomelo, tangerine and bergamot, tennis star Rafael Nadal as the global brand Open victories – the most won by a single followed by herbal and spicy notes of ambassador for Tommy Hilfiger underwear, player – including five consecutive title lavender and cardamom, followed by Tommy Hilfiger Tailored, and the new wins. extracts of jasmine and mandarin blossom fragrance TH Bold. “Rafael Nadal has been a longtime with a woody Boronia accord. The dry The collections are available personal friend and supporter of our down pairs orange flower absolute with beginning in Fall 2015. brand, and I’m continually inspired by cedar, sandalwood and vetiver. The 29-year-old Nadal has ranked his dedication and passion for his sport,” The TH Bold bottle is deep navy blue among the world’s top five tennis players said Tommy Hilfiger. “This exclusive with a striking red and white striped TH since 2003. At the age of 24 he became the partnership brings one of the greatest Bold logo. youngest athlete to complete the “Grand athletes of this generation into our Tommy Slam” and is the second male player in family. Rafael embodies an effortless sense the world to have completed the “Career of style that exemplifies and reflects our Golden Slam” after winning the French, brand spirit – he’s confident, fun and cool.” Australian and U.S. Opens; Wimbledon; The campaign was photographed in and a 2008 Olympic gold medal. Nadal early 2015 and will break globally this fall with dedicated print, online, and out-of- home media placements. Nadal will attend Tommy Hilfiger launch events in North America, Europe and Asia to support the global initiative. The campaign will include the launch of TH Bold, Nadal’s fragrance for Tommy Hilfiger, which the company says channels the strength and vitality of an athlete who plays to win. The new TH Bold fragrance is described as strong and sporty. The fragrance opens with crisp citrus notes

TFWA/FDFA Issue October/November 2015 58 INSIDER

Lancôme “All Stars” unite in Advanced Génifique campaign

was to offer our customers a true beauty experience and a moment to remember,” said Bianco. All four ambassadresses were prominently featured in giant front and back lightboxes, with the Génifique serum glori- fied in the center of the podium. A huge screen presented the product messages, and the podium included displays of makeup and fragrance best-sellers, with space for stock and a mobile cash register for fast check-out. Specially trained BAs provided a strong customer dynamic, and linked the selling of the featured Advanced Géni- fique with other Lancôme makeup and fragrances. There was also a special repush on Génifique Light-Pearl through a double- Lancôme’s Advanced Génifique podium in Toronto Pearson International Airport in June packshot visual. “What we refer to as ‘retailtainment Beauty giant Lancôme has united four Because beauty by Lancôme is the which sells’ generated results we are very of its famed ambassadresses in a single ad- beauty of being yourself, the company proud to share. During the month of the vertising campaign for the first time for its says that each Lancôme ambassadress animation, Génifique grew at +80%, and star skincare serum, Advanced Génifique. was selected for her unique beauty, which the brand overall was 20 points ahead of Introduced in 2009, Génifique radi- comes from deep within. The women who the department,” says Bianco. ance treatment was the first serum inspired incarnate Lancôme are true role models “Lancôme draws its strength from by the field of gene science, and was an who have a firm foothold in their time, are constantly anticipating and fulfilling immediate success around the world. Since calmly confident, and always active in a every woman’s needs. The driving force it was launched, the serum has sold 15 cause to better the world. behind the brand is to make a difference million bottles and garnered 150 interna- The four Lancôme All Stars in the Ad- in women’s lives: this is well evidenced tional awards. Lancôme’s iconic treatment vanced Génifique campaign were featured by Lancôme’s number one position in the became Advanced Génifique in 2013 with in a stunning customized 45 square meter 2014 Travel Retail Generation panel,” says an optimised formula and development of a podium in Toronto Pearson International the company. self-loading dropper. Airport Terminal 1 in June. In the Americas, Bianco says that he Advanced Génifique Youth Activat- “The whole Lancôme team has and his team aim to grow this status by “le- ing Concentrate has become one of the accelerated implementing a clustered vi- veraging on categories and emblems of Lancôme, which it describes as sion based on passenger mix and needs,” products that are relevant “a must-have product for women all over explains Gianguido Bianco, who has led to specific customers: the world, no matter what their skin type the Lancôme Division for Travel Retail Asian doors in the North or age.” Americas (TRAM) since September 2014. suggest a holistic focus Lancôme’s use of four of its famous “The breathtaking Génifique All on cosmetics, fulfill- actress ambassadresses – Kate Winslet, Stars podium installed last June at Toronto ing the demand for Penelope Cruz, Lupita Nyong’o and Lily airport was a concrete example of this strat- expert state-of-the-art Collins -- captures the cross-generational egy. This investment not only applauded skincare, whereas our aspect and universality of the beauty Génifique’s worldwide success, it also South American doors product. capitalized on the recognition of this highly continue the develop- Each of the four actresses embodies demanded ‘Little Black Bottle’ amongst ment of the Fragrance a facet of the beauty offer and represents our Asian passengers,” he tells TMI. business, driven by our Advanced Génifique’s youthful aura in her Toronto airport handles 24 million top 3 feminine La vie own way and with her own personality. passengers a year, with a high percentage est belle.” European-American Hollywood star of Chinese travelers, a key consumer of Lancôme plans Lily Collins exudes illuminating fresh- Génifique. to continue being one ness; Oscar-winning Kenyan actress Lupita The podium objective focused on gen- of the most influential Nyong’o represents shining energy; Oscar erating a strong Lancôme brand awareness and coveted brands on winner and six-time nominee Kate Winslet through a unique 360° Retail Experience. the market; positioned projects brilliant presence; and fiery Span- “We created impactful staging, coupled as “the ultimate example ish Oscar-winner Penelope Cruz epitomizes with the right assortment, flawless service of French femininity and vibrant elegance. and enchanting storytelling. Our intention excellence.” 59 October/November 2015 TFWA/FDFA Issue INSIDER

L’Oréal TRAM and Dufry engage Americas’ passengers with Polo Red Panamerican racing challenge

L’Oréal’s Travel Retail subsidiary in the Americas (TRAM), in partnership with Dufry Group, embarked on a month-long, ground-breaking animation for its best- selling Polo Red franchise in September. The Ralph Lauren experience animation was TRAM’s first digital pan-American competition using Facebook targeted to airport passengers. Since its launch in 2013, Polo Red has been a tremendous success in the Travel Retail Americas market, especially in LATAM which represents 80% of Polo Red sellout. Polo Red is now the best- selling fragrance of the entire Ralph Lauren Fragrances portfolio (Men and Women combined), reports the company. The animation – which included an exciting POS retailtainment experience combined with a digital sweepstake to win a trip for a Lamborghini experience in Palm Beach, Florida – was designed to further Passengers at participating airports waited in line to experience the Forza motorsport 5 Xbox support the brand by creating engagement racing video game at the Polo Red promotion, shown above in Ezeiza International Airport in and awareness around Polo Red and the Buenos Aires. newly launched Polo Red Intense. The international mega event took Marketing Director Travel Retail Americas sengers could also participate in a sweep- place Sept. 1-30 in Dufry’s biggest doors Giorgio Armani & Designer Fragrances. stakes to win the Lamborghini Esperianza in Brazil, Argentina, the U.S. (Newark) At the Point of Sale, Polo Red’s eye- driving experience. and Mexico City Airports. The animation catching retailtainment animation featured The sweepstakes was designed to featured a major media digital campaign the Xbox Forza motorsport 5 racing video leverage the popularity of the race track which supported the operation by creating game. This unique consumer experience driving experience to recruit new custom- drive to store and call to action. connected the traveler with the Ralph ers in the target audience. “We are building the Ralph Lauren Lauren brand and then followed up with a The multi-country sweepstakes offered brand in South America by inventing new promotion to get a free Polo Red 30ml with three lucky Dufry passengers the chance to travel retail excitement and using new digi- the purchase of two Ralph Lauren Fra- win a trip to the Lamborghini Esperianza tal tools,” said Marie Dardayrol-Sandevoir, grances including 1 Polo Red Intense. Pas- on one of the world’s most prestigious race tracks. The contest was hosted at www. polored.com, the first website produced and operated by Parbel’s TRAM. Designed to accommodate every digital device, the website allowed the company to target travelers at each step of their journey. Using YouTube, Facebook, and Wi-Fi in the airport with pop-up ads on digital devices, the campaign was designed to raise awareness and create engagement across the entire travel experience, as well as collect comprehensive data on this key target customer. “Following our customers will be a long-term strategy to help us build a fan base,” explained Dardayrol-Sandevoir.

The Polo Red contest was hosted at www.polored.com, the first ever website produced and operated by L’Oréal’s TRAM.

TFWA/FDFA Issue October/November 2015 60 PROFUMO, the new intensity

61 October/November 2015 TFWA/FDFA Issue INSIDER

Travalo’s Uchange system ideal for travel retail

Travalo’s easy fill perfume spray Travalo atomizers are constructed atomizers are now more traveler-friendly. without glass and are aircraft “Uchange” technology allows the inner approved for carry on baggage, bottle to be interchanged between all new making them ideal for the travel Travalo products, allowing customers to retail market. Shuzhen Lim, provided a new retail dimension, evolving change up fragrances with ease. Genie-S Travel Retail Director comments, the whole system to increase flexibility and The Uchange system works in all “2015 has seen us strengthening our continual purchasing opportunities.” three Travalo models: the new Classic, the relationships within travel retail. Our To see the entire Travalo line, visit luxurious Milano, and the opulent Divine. latest interchangeable refill technology has their booth in Riviera Village, RF11.

Marc Jacobs Decadence Carolina Herrera, CH Men Privé Puig has launched the latest men’s fragrance from Carolina Herrera, CH Men Privé. Created by Perfumer Christophe Raynaud, CH Men Privé is an intoxicating, provocative and modern fragrance built around a seductive whiskey accord and leather. The newest extension of the CH master brand of Carolina Herrera fragrances, it rolled out in all travel retail markets in August Marc Jacobs new Decadence perfume for and is available in 100ml and 50ml women is his most glamorous and indulgent in years. EDT. Developed with master perfumer Annie Buzantian, The campaign behind the fragrance Decadence is a luxurious sensual woody scent with was shot by renowned photographer bold styling that echoes the irreverent spirit of Marc Mario Testino starring models Justin Jacobs. Joslin and Lily Aldridge and set in Presented in an emerald green bottle inspired New York City’s Upper East Side. The by one of Marc’s iconic handbags, it is topped with sleek polished black lacquered bottle an arched python cap, and a gold chain finished was inspired by a classic flask. Hints of with a black silk tassel. The deep green outer carton gold add elegance, making the bottle features a velvety feel and gold embossed logo. a powerful statement of sophistication Launching in October. and masculinity, says the company. New fragrance journalism award launched in U.S. Two former Fragrance Foundation Morris, Senior Vice President – Fine ‘plume’ award presented during the first alums, Mary Ellen Lapsansky and Lyn Fragrance at MANE and founding sponsor. Perfumed Plume Awards ceremony slated Leigh, have launched a new independent “One art form writing about another art for Spring 2016. initiative to stimulate consumer interest and form –an inspiring blend.” passion in the fragrance category through Initially there will be 5 Perfumed creative storytelling. Award Criteria & Categories Plume Award categories: The Perfumed Plume Awards for Fragrance articles must have appeared 1. Scent stories in mainstream media – Fragrance Journalism will recognize the in U.S. publications (print, digital, blog) magazines (print or digital) best writing and visual achievements, and provide generic information about 2. Scent stories in mainstream media – exploring the nature, pleasure, art and scent in an original, creative and unique newspapers (print or digital) artists in the world of perfumery. style that captures the attention of the 3. Blog postings The founders hope to stimulate writers consumer, published in a commercial 4. Visualization of scent stories – overall to compel their audience with “the alluring, format between January 2015 and design presentation (print or digital) fascinating, enlightening narratives that December 2015. It must be a minimum of 5. “Science of Scent” stories in mainstream capture the imagination of a wide audience 500 words. media - magazines/newspapers (print or of fragrance consumers across the United The submissions deadline is Friday, digital)/blog postings States,” explains Lapsansky. Dec. 11, 2015. Judging will be carried For more information, go to “The Perfumed Plume Awards is a out by a rotating panel of industry and wwwperfumedplume.com/Facebook/ great call to action for creative writing for non-industry luminaries. Winners will each Twitter/Instagram our wonderful industry,” comments Westly receive a check for $1,000 and a special

TFWA/FDFA Issue October/November 2015 62 63 October/November 2015 TFWA/FDFA Issue INSIDER

Essence Corp. brings excitement at the POS Essence Corp. ran a number of highly memorable HPPs for key brands over the past few months. Among the highlights in the region were these crowd-stopping presentations.

My Burberry takes over key Latin airports in September Essence Corp. took over Miami departure store, which was set up for two feedback from the customers, reports the International Airport in September for weeks in September. It elicited amazing company. the launch of the new My Burberry EDT, Expertise in fragrances and cosmetics draping the outside of a main terminal with signage that welcomed all travelers for the entire month of September. Inside distribution in the Americas the airport, My Burberry ads ran on all the screens in the duty free stores from mid- September to mid-October. In South America, Essence Corp. had dedicated space in the most important locations for the launch of My Burberry EDT in Argentina, Brazil and Colombia. Here pictured is the podium in Dufry Argentina, right outside the Main Dufry “Yo Ho Ho” from Jean Paul Gaultier Essence Corp. staged a highly original animation for Jean Paul Gaultier in WE ARE collaboration with Saint Martin retailer Vanity First last August, promoting the first “Pirates of the Caribbean” collection. This 2015 rendition of JPG’s limited edition Le Male & Classique bottles fit right PASSIONATE in with the islands of the Caribbean vibe. It was a great opportunity to capitalize on the island’s Pirate Day (which most of the islands celebrate) and gain exposure for the brand. Classique and Le Male remain to this day the best sellers of the Jean Paul Gaultier ABOUT OUR BRANDS Collection of fragrances. PROUD TO SERVE Dufry’s North America airports embrace Montblanc Emblem OUR CLIENTS Montblanc Emblem, one of the most striking new men’s fragrances of recent years, continued its success with the new Montblanc Emblem Intense, launched from October 1-15 in Dufry stores in Newark and Houston, where customers were invited to discover Montblanc’s latest launch and play golf. The new fragrance for men was AND DRIVEN BY also been launched in the Americas and in the Caribbean. Jimmy Choo sparkles with Wisa Mexico EXCELLENCE Jimmy Choo Blossom, the sparkling and vivacious new feminine fragrance created by Interparfums, was successfully launched in an HPP in Wisa Mexico from Sept 1-15. Jimmy Choo Blossom described as bold, bright and coquettish, is about the excitement of a night with your friends and the sip of a first cocktail. www.essence-corp.com TFWA/FDFA Issue October/November 2015 64 Expertise in fragrances and cosmetics distribution in the Americas

WE ARE PASSIONATE ABOUT OUR BRANDS PROUD TO SERVE OUR CLIENTS AND DRIVEN BY EXCELLENCE

www.essence-corp.com 65 October/November 2015 TFWA/FDFA Issue INSIDER

Parlux targets U.S. and international fans for launch of new RiRi by Rihanna fragrance

International super star, music icon instagram is more important than any in San Francisco and bus shelters in and fashion muse Rihanna launched her fashion review,’” said Espino. Washington D.C. Parlux has even created newest scent to huge excitement during “At 27 years old, Rihanna has already a RiRi van that will drive from place New York’s Fashion Week in September, made a record with Paul McCartney and to place, and club to club, with Brand roaming the city with a bright pink custom Kanye West, won her 8th Grammy, swam Ambassadors to give out samples and sell vehicle displaying her image and the RiRi with the sharks in Harper’s Bazaar, and product. by Rihanna branding. The new fragrance-- did a charity bag for Fendi. She’s the The RiRi van is also the center of feminine and flirty--is said to reflect the face of Dior fashion -- the first woman of a call-to-action across multiple social star’s softer side and show her vivacious color to front the Dior fashion brand,” she accounts and platforms to engage fans and spirit in an entirely new light, says Diana continues. continue the conversation. Using Geo- Espino, Global Vice President of Marketing “Since launching Reb’l Fleur, her tagging through Instagram, the campaign and Brand Development at Parlux Ltd, first perfume in 2010, through June 2015, encourages fans to find and follow the which produces the Rihanna fragrances we’ve sold over 12 million Rihanna bottles. truck. The first to find the RiRi by Rihanna among its portfolio of American-centric This year marks the 10th anniversary of truck at a new location and share a photo lifestyle and pop-culture brands. her signing on with a record label, and it of themselves using #ThisisRiRi wins a The RiRi by Rihanna guerilla coincides with the launch of RiRi, which is special prize such as a signed bottle of marketing campaign in NYC during New the first time she is putting her name on her Rihanna fragrance. All fans who visit the York Fashion Week 2015 generated buzz fragrance.” RiRi by Rihanna truck receive RiRi by and awareness wherever it went, said Rihanna is the acknowledged Queen Rihanna fragrance samples. There was also Espino. It was visible at key fashion shows, of Social Media, with 169 million fans a selfie activation with pink RiRi gloves. after party venues, and colleges such as across Facebook, Twitter, Vevo and “For Fall, we are going to flood the Fashion Institute of Technology, Parsons Instagram, and her popularity is growing. top five malls in the U.S. with RiRi, taking School of Design, and Baruch College, So social media is an integral part of the over entrance doors and escalators, along bastions of huge fan bases for the 8-time launch campaign. with a big project with Refinery 29, and Grammy winner. In addition to flooding New York ongoing concepts and interactive quizzes “Rihanna is such an icon, not only as City with taxi tops (with an estimated 142 with Hollywood Life. And because we a singer and in the music industry but in million impressions during the launch are so strong in England, we are using fashion as well. She’s become the muse period), Parlux will also use taxis in Las the Daily Mail to mount a very strong of designers and the people. Tom Ford Vegas and in Miami during Thanksgiving promotional program for the UK,” says recently gave a quote that said, ‘Rihanna’s weekend. They will place RiRi kiosks Espino. The international launch also covers Australia, Canada, Korea, select European countries, and Israel and Kuwait, among others. There are 73 doors in the Caribbean, including Penha, John Bull, Maggy’s, Kirk Freeport, Caribbean Ari and Dufry. In addition to the Rihanna fragrances, Parlux’ pop-culture fragrance brands include Jay Z, Sean “P. Diddy” Combs, Sofia Vegara, and Pitbull, as well as Jessica Simpson, who crosses over from the fashion to pop culture, says Espino. And then there is Parlux’s Paris Hilton brand, which is one of the company’s strongest international brands at this time. “Paris Hilton is such a hard worker and smart business woman. She’s opening hotels in Paris and South America and has stores where she sells accessories and fragrances. Because she resonates so well in the global market, 75% of our Paris Hilton business is now out of the country.”

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Tairo honors BAs from throughout the Caribbean at 2015 Beauty Seminar

The BAs also heard about the latest launches from YSL Cosmetics, before leaving for a special shopping excursion at the famed Sawgrass Mills outlets. Day Two of the Seminar focused on Tairo’s extensive portfolio of fragrances from Coty and P&G Prestige. In speaking to the BAs and buyers, Bassan emphasized the importance of value sets in the Caribbean’s super-competitive market, and More than 100 of the top-performing “Our BA seminar is always a fantastic stressed the success of Tairo’s “Caribbean Beauty Advisors and retail buyers from time to touch base with the top Beauty Exclusives.” These are fragrance brands throughout the Caribbean and Duty Free Advisors in the region, along with the not available in U.S. department stores, Mexico attended Tairo International’s 2015 buyers from each of the top stores. The such as Roberto Cavalli, and are becoming Beauty Seminar at the Hard Rock Resort in seminar provides insight into upcoming an important part of the fragrance portfolio Hollywood, Florida at the end of September. new launches and initiatives for every one in the Caribbean, he said. Tairo has created The information-packed two days of of the brands distributed by both Tairo and very effective bottle tags and in-store meetings and presentations covered a range SOMAR,” Tairo International President visualizations to promote these exclusive of brands and products from the Miami- Robert Bassan tells TMI. in-demand selections. based distributor’s portfolio of brands. Day One of the Seminar covered A true highlight of the 2015 Tairo Tairo’s new SOMAR division, a separate Beauty Seminar was a 4-island “Rock Off,” sister company that distributes beauty and where the retailers from Aruba, Curaçao, professional hair care brands to Caribbean The Bahamas and Cancun staged spirited local and travel retail stores, professional presentations highlighting the culture, hair salons, spas and beauty suppliers, as music, costumes and even food from their well as the Mexico travel retail market. home island. The time, effort, creativity and SOMAR currently distributes professional energy that went into each presentation was hair care brands Phyto, Phyto Specific, Rene incredible – many of them featured dancing Furterer, the Moroccanoil line of hair and and gorgeous, elaborate Carnival costumes. skin products, and OPI nail lacquer. Tairo The presentations were held throughout the International President Robert Bassan used day, with attendees voting on the eventual the seminar to announce that SOMAR is now winner. Each in fact was a fantastic distributing the Wella hair care lines as well. representation of the islands, showcasing an immense pride of place from each group, but it was the rousing, raucous rendition of a Bahamas Junkanoo Carnival celebration --complete with whistles and drums -- that had everyone in the room up on their feet and joining in, that took home the Grand Prize. After an absence of several years, Tairo once again presented its Retail Partner of the Year Award, bestowing the accolade on Sears Mexico for its consistent, comprehensive support of the Tairo’s client brands. It has been 19 years since Robert and Tania Bassan established Tairo, and Robert Bassan gave heartfelt thanks to all the BAs and operators who made the company such a success for nearly 20 years. “We are here to thank you as well as train you,” he told the appreciative Sears Mexico won Tairo’s Retail Partner of the Year. Clockwise from top right: The teams from audience. Nassau, Aruba, Curacao, and Cancun compete in a 4-island “Rock Off.”

TFWA/FDFA Issue October/November 2015 68 INSIDER

Rituals enhances its airline business with inflight, lounge and cabin selections

connecting traditions and

The Rituals brand is building its presence in premium cabins of major airlines, where it has recently been listed on Qatar Airways beauty... and Thomson Airways and will soon to be onboard Virgin Atlantic and Saudi Arabian Airlines. The airline business sector has become increasingly significant for Rituals, which began by supplying passenger amenity kits to carriers. But airlines soon discovered that the Rituals products were such appreciated items in their premium cabin washrooms that they are now choosing Rituals’ 100% pure cotton onboard sleepwear, and putting Rituals products in the washrooms in their airport premium lounges, saying that it enhances the end-to-end luxury experience they want their premium passengers to enjoy. “We are very focused on this sector so we have a team dedicated to our airline customers who can also provide sales- training for cabin crew. We are very supportive of our airline partners that want to actively promote Rituals,” said Neil Ebbutt, Director Wholesale, Rituals. “Airlines are constantly on the lookout for ways to pamper their high value passengers and Rituals products are specifically designed to do just that. The philosophy behind our brand concept is to create products whose properties can transform every day routines, including personal grooming, into soothing, relaxing rituals. I can’t think of a more relevant time to escape into that than during a long- haul flight. We will be meeting with a number of [airlines] when we exhibit again this year at Tax Free World Exhibition in Cannes,” said Ebbutt. The Rituals airline product range includes Comfort Kits with lip balms, facial creams; body moisturizer - EDT; deodorant in 10 and 20 ml and are available in unisex, male and female kits. Washroom items include hand wash, hand lotion, face cream, hair gel, EDP; body moisturizer, and hands-free body mist. Rituals also offers a range of black, green and herbal teas in single wrapped packaging in pyramid shopper bags. The Rituals Sleepwear and toweling come in a 100% pure cotton range for men and women, including hot towels. Rituals inflight selection includes travel retail Booth L17, RED VILLAGE exclusives, among others. Rituals is now available in more than 400 stores in 25 countries worldwide, including onboard 90 cruise ships, 100 shops in airports, Paris Amsterdam London New York rituals.com including 5 stand-alone airport stores, is in 850+ boutique hotels and has 20 airline partners.

69 October/November 2015 TFWA/FDFA Issue INSIDER

Revlon unveils first new fragrance in ten years

Revlon is launching its first new Eau de Toilette to the travel retail industry Another new exclusive travel retail fragrance in over ten years. The new is an exciting step for Revlon, and this set features Revlon Ultra HD Lipstick LOVE IS ON Eau de Toilette will be exhibition is the perfect place to launch it.” with five shades of the wax-free showcased at TFWA World Exhibition formula. (Yellow Village, A13), and is an important The sensual Revlon LOVE IS ON “We are very happy to bring element of the brand’s strategy to further Eau de Toilette combines Italian lemon all this news to the channel,” David spread its message that romance is on. and Sweet Berry, presented in a heart continued. “More often than not, “Love is such a positive emotion shaped 50ml bottle that appears to be passengers leave the beauty area within for everyone,” comments David floating in its packaging. airport shops without finding what Carvalho, Senior Vice-President and Revlon is also showing the new they want, and very often because General Manager at Revlon, “we want to travel retail exclusive Love Series they cannot afford the prestige brands. particularly celebrate and inspire romantic sets, one for lips with 2 lipsticks, 2 lip This is a great opportunity for Revlon, love –tapping into the role that cosmetics gloss and 2 lip liners and one for face which is well positioned to satisfy these and fragrances play in with a compact primer, highlighting consumer needs by offering high quality, the seduction and palette, blush and multi-use affordable products. By expanding our attraction. The eye-brightener. Each set also portfolio in travel retail from cosmetics introduction includes an exclusive Love into fragrances, along with our new of our new Series cosmetic bag, “designed special regimen packs and premium LOVE to delight our consumers who hair care, we believe that travelers will IS ON are buying to gift to loved find these to be compelling alternatives ones back home. It brings to higher-end prestige brands. Travel the glamour and high retail is a priority for Revlon and we quality we have in our will continue to support the growth and line, with a complete development of our customers. We are regimen solution for also really excited about Cannes this our consumers,” says year, and promise all visitors that LOVE Carvalho. IS ON all week at the Revlon booth!”

Marie-Clothilde Brulé joins beauty device company Iluminage Beauty for international sales

Iluminage onboard the yacht Chocolate at TFWA at-home laser device FDA-cleared to Beauty Inc., World Exhibition. reduce fine lines and wrinkles around a leader in Iluminage Beauty, which is a joint the eyes and mouth. It will also show the the design, venture between Unilever Ventures and iluminage Youth Cell Skincare system, a development Syneron Medical, has just appointed new approach in anti-aging with unique and distribution travel retail beauty specialist Marie- formulations that target specific areas of the of advanced Clothilde Brulé as Senior Vice President skin to boost skin cell renewal and reduce at-home beauty of International Sales. Brulé will be visible signs of aging. care, will responsible to expand the international Iluminage Beauty also markets the be showing presence of iluminage Beauty in all me brand, an at-home professional hair its portfolio channels of distribution. removal device for all skin tones; the Pearl of clinically Among its star products, the company teeth whitening system that uses patented proven technologies derived from the will showcase its groundbreaking ionic technology, and the Tanda light-based professional medical aesthetic device iluminage Skin Smoothing Laser. beauty devices for skin rejuvenation and market in Cannes, in Harbour Village Introduced in 2014, this is the first acne treatment.

TFWA/FDFA Issue October/November 2015 70 INSIDER

Cross launches global rebranding campaign celebrating human potential and the pursuit of greatness

Iconic American writing instrument attitude of our core consumer. Pairing this brand Cross has officially unveiled a new essence with innovative new products brand identity. like the Townsend Electronic Stylus and a The new look of the brand – which global advertising campaign that celebrates got its start during the California Gold our consumer, we find a complete effort Rush of 1849 with gold pens – combines to reintroduce Cross as the apex of usable a contemporary new look, innovative new American luxury,” he added. products and an authentic messaging cam- The campaign will personify its brand paign, which the company says is aimed truths such as “inspired ingenuity” through at repositioning the brand among the most a series of black and white, visual narra- prestigious American luxury brand names. tives. These will capture moments where The rebranding reflects both the his- selected artists and entrepreneurs are tory of the company, as well as its vision immersed in rich experiences surrounding for the future. their endeavors. “We are introducing a modernized The campaign chronicles: Peter Thum, Star Wars collection version of the Cross brand, staying true to social entrepreneur and founder of Ethos In addition to the new branding, Cross its brand roots, historic legacy and the iden- Water and Fonderie 47; Kate Davis, musi- last also unveiled a collection inspired by tifiable iconography of its origins,” said cian, singer-songwriter who was named the original Star Wars film trilogy. Magnus Jonsson, Global CMO, A.T. Cross. one of MTV’s “15 Fresh Females Who Will The series features iconic Star Wars “The new gold and black colors Rule Pop; Cris Cab, internationally famed, characters C-3PO, Darth Vader, and Storm- pay tribute to the brand’s historic past, singer-songwriter; and Ōyama Enrico troopers. The Star Wars limited edition col- while the modernized brand symbol, the Isamu Letter, artist, essayist, and business lection from the Townsend line is limited determined Cross lion, reflects both the person inspired by street art and culture. to 1977 units per character with character original brand symbol and the spirit and Each of these artists is shown using details etched into the finish, (MSRP $450- a Cross pen to produce aspects of their $575). The Click Star Wars Gel Ink Pen works. The models that inspire the relaunch Collection symbolizes the spirit of each efforts are The Classic Century, The Cen- character for everyday writing needs. tury II, the Townsend and the Peerless. According to David Ferreira, Head STAR WARS and related properties are of Global Travel Retail for Cross, the trademarks and/or copyrights, in the company will be updating all its travel United States and other countries, of retail fixtures to reflect the new branding, Lucasfilm Ltd. and/or its affiliates. © & TM and will officially unveil the new colors in Lucasfilm Ltd Cannes. “The updated travel retail self-serve fixture combines all the benefits of the previous one mixing several product categories, each generating revenue without cannibalizing the others. It also introduces 5 luxury items in a closed shelf and allows expansion for new categories like small leather goods. This fixture perfectly conveys our new identity taking in consideration the specificities of travel retail,” Ferreira tells TMI.

71 October/November 2015 TFWA/FDFA Issue INSIDER

Crislu reinforces its worldwide reputation for affordable quality with new push in travel retail between its Inflight, TR land operations, Jewelry brand Crislu defines the fine jewelry shops and department stores, phrase “affordable luxury.” Using the offering Crislu Classics, the more trend- same craftsmanship of fine jewelers driven Designer Collections, and the fresh and integrating these highly specialized water pearl Bridal Collection. techniques into the creation of both its “This fall marks the first time where Fashion Jewelry and Designer Collection we are launching simultaneously the pieces, Crislu has become a nationally same designer pieces in Inflight that are branded cubic zirconia line, distributed launching in our department stores and fine globally in over 50 countries. jewelry shops,” he says. An important travel retail brand, In travel retail, Crislu includes a pair Crislu has always relied on professional of its best-selling stud earrings as a GWP independent talent in the field for with every inflight/onboard purchase, management in the sector, says Bryan accounts in Canada and introduced Crislu which is packaged in a premium gift box Crisfield, President/CEO of the family- in Dubai Airport. with signature ribbon, says Crisfield. owned company founded in 1961. And the business keeps growing, says The company also offers airports Crisfield brought in Carol Davy in Crisfield. and cruise ships premium Top of Counter June to lead the Global Inflight business “In a very challenging year for TR, display fixtures that feature Crislu’s top and other travel retail channels. Inflight Crislu is growing with eleven new doors performing core pendants and earrings. listings are up 87% over last year and in Caribbean/Latin America, Canada and These best sellers feature magnetic flip Crislu was just listed in Hong Kong’s new Dubai Airport. We have just agreed to open boxes which attach inside the counter unit. Kai Tak Cruise Terminal. over forty Goldsmith’s Fine Jewelry Shops “Crislu enjoys a worldwide reputation Andrew Heitsman handles Crislu’s in the UK.” for exceptional quality and exquisite Central, Latin America and Caribbean Crisfield says the company has also design,” says Crisfield. “Every piece of business, which has added 11 new points expanded its travel retail offering to insure our jewelry comes with an International of sale this year, including Panama Airport, it appeals to a multi-national customer: Lifetime warranty; we use the highest Peru and Chile. “Crislu is a true global brand with each quality cubic zirconia on the market and Harry Kaprielian, CANADEX and every exquisite piece available in three our unique jewelry designs are inspired by International, oversees the Crislu business beautiful finishes – Pure Platinum, 18KT Crislu artisans and designers. In addition, in TR and local markets in Canada and Gold and 18KT Rose Gold,” he says. our luxury collections ship monthly.” the Middle East. He has added five new Crislu has also developed synergy

ALFA Brands takes on Nishi Pearls for TR North America

ALFA Brands has been appointed the Amy Hildreth – ALFA Brands Duty Free/Travel Retail Agent for Nishi Operations Manager added: “Nishi Pearls Pearls, an international jewelry brand with will enhance and enrich our portfolio, and offices in Hong Kong, Montreal and the we are eager to present these beautiful USA. pearls to all our long time and loyal Nishi Pearls’ international team of customers.” award-winning designers are dedicated Nishi Pearls has explored new to creating collections to satisfy both the ventures, including a collaboration with fashion-forward and the classic customer. Maple Leaf Diamonds. Nishi Pearls’ Pearls are available in a range of sizes, dedication to quality is reflected in its natural colors, and astonishing shapes, partnerships with leading professionals in making them pillars in the jewelry industry the industry, such as its latest co-branding throughout history. endeavor with Swarovski. Franco Gabriele – ALFA Brands Nishi Pearls will be on display in President stated: “We are honored for ALFA Brands’ Suite 924 at the Frontier having been selected by Nishi Pearls to Duty Free Association Convention taking be their Duty Free/Travel Retail agent in place November 15-18, 2015 in Vancouver, North America, and we are thrilled about Canada. Please visit www.nishipearls.com/ this very exciting partnership.” online.

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Kering eyewear launches with special plans for the Americas and TR

premium high-end segment,” said the oversee Latin America and Travel Retail company in its initial announcement. At Americas,” says Hagi. that time, Kering brands’ business was roughly 350 million euros, making Kering Unique point of difference one of the top five players in this industry. Kering Eyewear has a clear vision The Eyewear Collections are now of how the company differs from its designed and developed in-house in competitors, explains Hagi. collaboration with the creative teams of the “We are not another eyewear company Kering brands, and with the same attention and we aim to become the first luxury to craftsmanship and detail as in all other company to enter directly into the eyewear product categories. market. That is the statement that Kering The new company will be placing Eyewear communicates to its customers: greater emphasis on travel retail than in we treat every single detail, every element the past. The company appointed Omar of the distribution, the marketing, the sales Hagi as Head of Global Travel Retail and tools, and the customer with the same care International Optical Retailers at the end and attention given to the brands, a luxury of last year. Hagi spent the last four years approach. Omar Hagi, in Safilo Group, most recently as head “Because of this, the quality that we Head of Global Travel Retail of Global Travel Retail. Hagi reports to will take to the market, the added value sets Massimo Renon, Kering Eyewear Global us apart.” Since it announced its launch in Head of Sales, with whom he worked at With a portfolio of high-end brands September 2014, Italian company Kering Safilo. Kering Eyewear is being run by that includes such names as Bottega Eyewear has lost no time establishing another former Safilo executive, CEO Veneta, Saint Laurent and Boucheron, the itself in the Luxury and Sport & Lifestyle Roberto Vedovotto, who was Safilo’s CEO company sees the sunglasses category as its segment of the market, including in travel until October 2013. best recruiting tool. retail and in the Americas, taking back the Hagi was in Miami this summer, “Eyewear is today a strategic control of the eyewear in a number of the meeting with clients, finalizing the new category, especially in the luxury goods Group’s brands. infrastructure, and introducing Paolo industry. Optical frames and, in particular, Kering Eyewear was officially Diamante – who also spent a short time at sunglasses, given their entry price for a launched on June 30, 2015, in the Palazzo Safilo after nearly a decade at L’Oréal – as high-end luxury brand and their increasing Grassi in Venice where the ‘Collezione the area manager for Travel Retail in the importance as an aspirational fashion Uno’, including nine of the Group’s brands Americas for Kering. accessory, represent an outstanding in Luxury and Sport & Lifestyle, was He also met with TMI to discuss the opportunity to recruit new consumers.” unveiled. The first Kering Eyewear Global specifics of the business in the region. “And that is why the group has Sales Campaign began on July 1, 2015 and From its headquarters in Padua, decided to internalize the category. was followed by local sales events in key Italy, Kering Eyewear is divided into nine Because we need to take care of how countries. subsidiaries: Italy, France, Iberia, UK and we distribute the brands, to know which As part of the French Kering Group, Nordic, Germany, Hong Kong, Shanghai customers we will be selling to. We need to which generated revenues of €9.7 billion and Tokyo. New York is the regional talk the right language to be consistent in in 2013, the new dedicated Eyewear headquarters for the Americas. every aspect,” he says. company is launching with a portfolio of “The company is also opening “We are investing a lot in product powerful Luxury and Sport & Lifestyle an office in Miami later this year to features and planning that our luxury high brands such as Bottega Veneta, Saint Laurent, Alexander McQueen, McQ, Stella McCartney, Boucheron, Puma and Brioni. The company says that it will be pooling its expertise in design, marketing, production and distribution for the majority of the Group’s brands with the goal of becoming the world leader in luxury and high-end Eyewear. “The global eyewear market for Bottega Veneta frames and sunglasses is significant and growing at a high-single digit pace in the

TFWA/FDFA Issue October/November 2015 74 INSIDER

this category: high end men’s Sportstyle Collection will offer a selection fashion brand Brioni, and Italian in a more competitive price point. jewelry brand Pomellato. For North America, Hagi says that Most of the brands had Kering Eyewear will also focus on Saint previously been managed Laurent and Bottega Veneta. under license: Gucci, Bottega “In Canada for example, where we Veneta, Saint Laurent and experience a lot of Asian travelers, we Alexander McQueen (and will build on the strength of our portfolio McQ) were licensed to Safilo; thanks also to our vast offer of Asian fitting Stella McCartney was with styles.” Luxottica; Boucheron was with One other way in which Kering Gold & Wood, and Puma with Eyewear is differentiating its eyewear Puma Charmant. business from the competition is its use of dedicated Brand Ambassadors and end products will be made in Italy, with Puma the highlight in the Americas enhancements to the distribution across all details that really align the product with Kering Eyewear believes that sports channels. the brand’s DNA. For example, in Bottega and lifestyle brand Puma will offer the best “Instead of just selling product, our Veneta we have handmade studs and metal potential in the Americas. Brand Ambassadors will communicate parts, for Boucheron we are featuring the “One of the key pillars of our strategy with buyers of the brand, do training, and jewelry’s iconic cabochons. As a result, the in the Americas, and especially for South implement management principles and feedback from our new sales campaign is America, is Puma. Puma is huge in many regional merchandising. really amazing.” territories such as Latin America but still “We will be focusing on global not exploiting the full potential in the channels because we would like to control Focus on Pillar brands category. We are launching a collection of the way we go to market. Global channels Kering Eyewear’s first global eyewear with different segments targeting include global travel retail, international eyewear sales campaign that launched different consumers,” says Hagi. key accounts, and big operators with more in July focuses on the company’s pillars Puma launched in July with three than 600, 700 stores,” concludes Hagi. Bottega Veneta, Saint Laurent, and Puma lines: Performance, Active and Sportstyle. “Cannes will be the perfect moment and other brands such as Boucheron, The Performance glasses are high-tech to finalize the discussion with our partners Alexander McQueen, McQ, and Stella solutions specially designed for running on what is the best distribution given the McCartney, says Hagi. Kering Eyewear is and golf. The Active Collection is easier prestige of the brands we are launching.” also launching other brands who new to to wear and is more lifestyle oriented. The

Maui Jim introduces Blue Hawaii Collection to TR

Maui Jim is unveiling the first frames with Maui Jim’s proprietary PolarizedPlus2 says the company. in the new Blue Hawaii Collection at the lens technology, which reduces 99.9% The Blue Hawaii Collection features TFWA World Exhibition. of harmful glare and provides 100% Baby Beach, Cliff House, Mavericks Blue Hawaii features a blue mirror protection from UVA and UVB rays. These and Wiki Wiki lightweight aviator styles coating that is applied to a grey base lens to combined technologies mean that only 19% fitted with Maui Evolution lenses plus the create one of the most protective lenses on of light is transmitted to the eye. high-fashion Leia and Sweet Leilani nylon the market, says the company. This high protection lens material frames with SuperThin Glass lenses. Blue Hawaii has a high contrast AR makes the Blue Hawaii sunglasses ideal for coating to eliminate stray light combined extra bright days and activities on water,

75 October/November 2015 TFWA/FDFA Issue INSIDER

One on One with Henri Blomqvist Safilo focuses its brand-led and design-inspired philosophy on Travel Retail

“Mark Schulte has the right leadership Our recently presented 2020 plans, which capabilities, values, and experience to call for Safilo to reach plus 40% total deliver this for us. And of course, he line growth versus 2014, means that in will make sure that we accelerate our six years GTR is expected to grow fairly growth in the Americas and in MEA while aggressively within that total plan. And strengthening our market leading position obviously, because the sun eyewear always in Asia. That’s the aspiration, obviously leads the brands and the optical portfolio, long term for the Americas, and in Europe, we see travel retail as a trend-setting Middle East and Africa,” says Blomqvist. channel for us. Starting from this year, the biggest product initiatives will focus on our Creates dedicated Global TR propriety brand Carrera, and a whole new organization product collection. “The first step for the group was “We are also looking to continue the to create the Global Travel Retail incredible momentum of Polaroid. Since organization, which we did at the end of we acquired the brand [in early 2012], the last year. Now we have a dedicated global business has grown very rapidly and is Henri Blomqvist, Safilo Global Commercial Director organization responsible for this business, probably the fastest growing sun eyewear and the head of global travel retail reports brand in Europe at the moment. In the directly to me. Americas travel retail market, Polaroid and Safilo Group is continuing to build its “Global Travel Retail is a separate Carrera are well-developed brands. In our Global Travel Retail business, following channel from the other regions that we Latin American business [not global travel the establishment of a new dedicated have in the world, because we want retail] our propriety brands represent 40% division to handle the channel on a world- to make sure we have those unique of Safilo sales.” wide basis in 2014. The appointment capabilities specifically needed for this The third pillar among Safilo’s of Marc Schulte in May to head up the channel. The Travel Retail operation is propriety brands is Smith, which will now division was another step to strengthen unique, the customers are unique, and the take on a more global role in the company. the division and meet the company’s retail is about building capabilities, having “This outdoor sports brand is the goals to secure Safilo’s continued success, an organization that is designed for global U.S. market leader in ski goggles and commented Henri Blomqvist, Global travel retail. That was really the first step in ski helmets. The eyewear is now being Commercial Director, in the announcement. terms of our goal to market capabilities,” expanded globally, under a more lifestyle Schulte comes to Safilo with 14 he says. approach,” says Blomqvist. “Directly years of professional experience at the The products are the same in all linked to this initiative, Safilo is opening a L’Oréal Group, where he mastered several channels, even as the logistical, support, design studio in Portland, Oregon, which retail channels globally, including as and sales structure have been modified to will be responsible for designing Smith General Manager L’Oréal Luxe in Mexico meet the specific challenges of travel retail, eyewear to the world. since 2008. In Mexico, Schulte oversaw says Blomqvist. “We are planning to design not just for significant turnaround and best practices. “We have a great organization and North America from this location, but to In his new role Schulte will be based Marc is a prime example of the talent the world. We want to be where trends are in Italy at Safilo Group Headquarters, that we have in the organization. Now we born, and outdoor trends are born on the coordinating worldwide areas with specific need to make sure that the leadership that West Coast of the U.S. They are not born focus on strengthening Safilo’s market we have can take the business to the next in Italy. A lot of things are born in Italy, but leading position in Asia, while continuing level.” not these trends, so we are very proud of to accelerate growth in EMEA and the what we are doing here.” Americas. Proprietary brands -- Carrera, Polaroid Blomqvist, speaking with TMI at the and Smith -- propel growth Fashion licenses lead the way Duty Free Show of the Americas in Orlando, “Travel retail is a crucial part of the Safilo will also devote significant says that the appointment of Marc Schulte total group, an important business for us. attention to its licensed brands portfolio. as new Head of Global Travel Retail is an “Of course, we expect the licensed indication of how Safilo is dedicated to brands to continue to grow in a very building global travel retail in line with the healthy way. Dior is the benchmark of the company’s commercial pur-pose, which is to quality of the product, of the execution, the deliver quality sales and quality distribution distribution quality; we are very proud of in a very targeted and meaningful way. our longstanding partnership with Dior. TFWA/FDFA Issue October/November 2015 76 INSIDER

“Then we have other important we are brand-led and design-inspired. the next level. brands: Hugo Boss, Max Mara, Kate “That’s how we characterize ourselves “Long term, we want to grow the Spade, Marc Jacobs, and Tommy Hilfiger. as an eyewear creator. It all starts from the proprietary brands from the 25% that it I’d like to mention also Fendi, Jimmy product, the quality of the product, and it represents today to 40% by 2020, while Choo, and Celine for the group, the higher goes to the quality of our distribution and continuing the long term partnerships with end brands that are growing very fast.” how the brands really come to life in front fashion houses that very importantly share Looking ahead, Blomqvist expects to of the consumer. the same values as Safilo does, and with complement the licensed brand portfolio “And with our customers -- in this whom the partnership is so much more than with partnerships with fashion houses that case, the duty free travel retail customers -- manufacturing a product and distributing share the same values as Safilo. He cites we want to work in a win-win partnership it. We are very, very proud to have many the 2014 license renewals/extensions for and our first measure is customer sell- of the most prestigious brands in the world Tommy Hilfiger and Jimmy Choo, and through. This is what we measure, what given to our care.” the signing in March of this year of a new we want to measure, and what we want to license with Givenchy. drive. We are not interested in the ‘sell in.’ *Note. Safilo also represents Gucci “Fashion partnerships bring something The consumer centered business model eyewear until the end of December 2016 that complements our total portfolio really is about sell-through and market when the license transfers over to brand offering,” he comments. share, and customer category sales. We owner Kering’s eyewear division, at which “It’s obviously very important for us have several solutions when it comes to time Safilo will continue as the contract to have this strong brand portfolio because category management to really take that to manufacturer for the next four years.

Safilo holds immersive HPP event for Carrera eyewear in MIA

At the same time, Carrera presented its new “Out There” collection at the main entry of the South Terminal in the high traffic location after security. Here, an interactive event offered passengers an instant photo souvenir with Photo-Flyer that includes a removable coupon for a free gift, to be redeemed in the duty free store. Safilo launched a first of its kind HPP passengers, and a special event to engage Jean-Luc Decaux, co-CEO of activation for Carrera sunglasses at Miami consumers in the terminal and drive JCDecaux North America, comments: International Airport in July. them to the point of sale at the Duty Free “We are excited to see the relationship The high visibility “Out There” Americas duty free stores. evolve between ourselves and Travel Retail campaign was designed to reach the one Using the latest digital technology brands in our U.S. airports. JCDecaux million travelers passing through MIA available in MIA, Carrera is able to was happy to partner with Safilo’s Carrera in the month of July, and consisted of an communicate with passengers through a brand and Duty Free Americas to bring integrated campaign using media banners “Welcome to MIA airport” message and this innovative, immersive experience to in MIA’s North and South terminals, digital offer 30 minutes of free Wi-Fi after they Miami International Airport passengers. screens around the airport featuring Carrera view a 30 second Carrera video. Experientials have become a key and a consumer event in the airport’s main The message is prepared in English / component within the airport landscape and traffic space in South Terminal. Spanish / Portuguese, and invites travelers we continue to see how brands are moving The campaign reinforced the media to “Discover new Carrera collection at the past standard purchase incentives to engage banners with a digital campaign targeting duty free store.” with the potential consumer.”

77 October/November 2015 TFWA/FDFA Issue INSIDER

Buckley London: a travel retail success story in the Americas

UK jewelry brand Buckley London has gone from strength to strength in the Americas since launching in the market in 2012. Partnering with its exclusive agent in the region, International Brand Builders International (IBBI), the exciting fashion brand opened 50 new doors, a number that continues to increase. “We’ve seen fantastic growth across duty free and the maritime sectors in particular, which we forecast to continue. Over the past year, some key doors of particular success are Starboard, Duty Free sentimental gift or a self-purchase and, as circles made from sparkling cubic zirconia Americas and WDF, to name a few,” Neil part of our global strategy we are currently accents.” Thompson, Buckley London Global Sales developing the idea of message jewelry Thompson also highlights Buckley’s Director tells TMI. further. new ‘fast fashion’ range that capitalizes Thompson says that Buckley is “Multi-functional jewelry is on the trend of mix and match stackable investing in its partners to support their another huge trend in travel retail. Our bracelets, at good value: The Carousel business needs and introducing new sales unique ‘Four-ever’ earring set and the Collection, with glass beads, and the and marketing plans to create a strong ‘Interchangeable Pendant’ each come with Serenity Collection, with semi-precious global brand image. various centerpieces including colored gemstones known for their unique The jeweler’s ability to help retailers cubic zirconias, which can be changed to properties and healing energy. The present the brand in a compelling and suit the wearer’s style and mood.” mesh-inspired ‘X O ♥’ Collection and the attractive environment also boosts listings Buckley and IBBI have even held a polished bead Simplicity Collection also and sales, sales Thompson. number of focus groups in the region to lend themselves to stacking. “Buckley London uniquely offers gauge the marketplace. The brand also has a distinct point of a wide variety of display materials “We really understand the needs of our difference from the competition, he notes. to accommodate our broad range of customers. These [focus groups] provided “At Buckley London we design all customer’s needs. We understand the an interesting insight to customer’s views of our collections at our head office in the importance of having the correct display about the brand and will help us implement UK and all collections are the product of in the given location and therefore we the learnings in future collections for the months of trend analysis. As a global brand, have a mix of self-select hanging products, American market,” he said. we ensure that we listen to our customers’ under the counter tanks, and free standing Thompson contends that these requirements and adapt trends to fit with ring units with testers. Our 4-sided unit is insights, and the right product mix, will their particular market. All of Buckley particularly popular as we’re able to offer keep the brand on a growth path. London’s products come beautifully the full range of core Buckley products, “We believe that the extended choice packaged and with a 2-year international thus offering an impressive ROI.” of products – from every day wear, to warranty, which also makes the pieces an Buckley has also introduced new units statement pieces, to timeless classics - will ideal gift.” for locations with limited space including allow us to significantly improve sales. Buckley has been nominated in two a 4-sided countertop stand, a 2-sided “We recently launched our new AW15 categories at this year’s Frontier Awards countertop stand, a ring unit and a bracelet collection which has received excellent at the TFWA World Exhibition. Its ‘Key bar option. feedback. The four new collections feature to Your Heart’ bangle and pendant set was The company is also very successful trends of organic shapes, tonal crystals and shortlisted for Star Product of the Year, and at tapping into consumer wants, says natural gems and perfectly demonstrate the the company is a finalist for ‘Supplier of Thompson. new direction and refresh of the brand. The the Year.’ “Jewelry which tells a story continues Aura collection draws inspiration from the Buckley was also featured in the first to be a huge trend globally in travel retail vivid hints of color in the Northern Lights Sunday Times BT SME Export Track 100 and the Americas are no exception. The and the Selene Collection resembles the League table, which ranks Britain’s small trend of talismanic jewelry was a driving frosted shimmer of the moonlight with and medium sized companies with the force behind our range of message jewelry, mother of pearl under a glass cabochon. fastest- growing international sales over the including the ‘I Love You’ bracelet, which “The Capri Collection features last two years. recreates the romantic phrase using the dots scatterings of tonal pave-set stones --and For more information, visit Buckley and dashes of Morse code in stunning cubic the Affinity Collection symbolizes the London at TFWA World Exhibition, Stand zirconia stones. These are ideal for either a power of eternal bonds through delicate H4, Red Village.

TFWA/FDFA Issue October/November 2015 78 Be Inspired...

Visit us: Red Village H4 TWFA Cannes 19th - 23rd October

BUCKLEYLONDON.COM 79 October/November 2015 TFWA/FDFA Issue INSIDER

Worldclassbrands adapts to meet changing market needs

Celebrating its 15th year as an exclu- jewelry and watch mix to ensure that we sive agent for travel retail, duty free, and are the right company for our partners and in-flight markets,Worldclassbrands has have the products that consumers want.” transformed its business over the past few As part of that shift, in 2014 World- years, shifting its portfolio to the “products classbrands was named the official travel that consumers want,” says Lenny Di Cris- retail agent in the Americas for Tyko Travel tofano, Worldclassbrands president. Retail for its range of Breo watches and “We are seeing double digit growth in sunglasses, Hippie Chic watches and Kartel large part because we shifted our product watches. mix and anticipated what was to come,” “Tyko Travel Retail is a great strategic says Di Cristofano. “We saw that people at partner with whom we are now going into the extreme high-end were buying luxury year three. We’ve made tremendous strides but other consumers were buying impulse and opened some really big markets with items or looking for value propositions. great product sell-through. From one sup- Worldclassbrands has never really focused plier we were able to fill the $35 to $75 on the high-end product ranges, items at niche in watches and sunglasses. $2,000 or more. We began transforming “We placed Breo’s freestanding unit about three years ago, readjusting our in Miami airport and are adding additional locations because it is such a great impulse gift that consumers respond to. We opened up the entire Canadian border market, sumer, and the needs of the market. This opened the U.S. with DFA and Dufry, and experience distinguishes us from a brand or are continuing to roll out. a company doing it on their own. We have “Hippie Chic is another great impulse a team of people who follow up with all gift with a value proposition. In our first the necessary work that needs to be done. year with Hippie Chic, the company sold What we can do in the first 18 months will over a million units onboard over 100 take an individual company five years. Our airlines globally. contacts, our know-how, our knowledge of “The same is true for Kartel, a watch the inner workings of the industry take time that retails for $95, but gives the right look. to learn.” It is a value proposition.” Di Cristofano sees the industry going Worldclassbrands also signed with through another transition now with all the Dutch fashion house Oilily, for the first consolidation taking place and cautions that time venturing into beauty bags, cosmetic agents must be prepared to adapt. bags, and fashion bags. “If you are not prepared to offer “Oilily was a new direction, allowing multiple options in the regions where these us to diversify from our core competencies operators function, you can get lost in the of jewelry and watches. We opened quite a process. Worldclassbrands is making sure bit of business for Oilily and are enjoying that we have the right mix of products, and growth in Colombia and Argentina in South that we remain important to our clients,” he America; in Puerto Rico, and on the U.S. says. “We only commit to the brands that Canada border. In Cancun Airport we’ve we feel are missing or have a purpose in gone from a gondola to full wall units and the industry.” expanded from three locations to five,” he Worldclassbrands is the exclusive says. global travel retail/duty free, cruise and in- G-Shock and Baby-G watches have flight agent of JOIA De Majorca (Authentic also done very well. “The brand is fantastic Majorca Pearls), G-Shock/ Baby G (Watch and is probably the fastest growing brand Collection), Breo (Watch and Accessories), in our mix. The only limitation is supply.” Kartel (Watch Collections), Hippie Chic Di Cristofano says Worldclassbrands’ (Watch and Accessories), and other brands 15 years as a travel retail agent gives the including Oilily, Thortiuda Angel Whisper- company the expertise to help niche brands er, Story by Kranz & Zieglar, Ti Sento by thrive in the market. Milano, Men’s Jewelry by Aagard, Ritmo “We think of ourselves as brand build- Mundo, Officina Bernardi, Sasura, Casio’s ers, as duty free specialists. We know this Edifice collection, Canadian Ice Diamonds, market. We understand the client, the con- Rotary Watches, and Festina.

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Furla presents a day-into-night collection

Drawing inspiration from a journey top and chain strap. worldwide in travel retail over the past few through Italy in search of different shades Gerry Munday, Furla Global Travel months. of light, the Furla SS2016 collection Retail Director, sees great potential for the “Turin is an important center for contains bold colors, deconstructed shapes, YOYO. “I’m delighted that the SS16 offer both business and tourism. With annual and gender-bender appeal in pieces that will include another travel retail exclusive passenger traffic of well over three million transform from day-into-night, and includes offer. The Piper Medium Dome has been flying into all of Europe’s main hubs, a new travel retail exclusive selection. incredibly well received by our customers we are confident that it presents us with Many of the pieces in the collection and the sell-through is superb. The YOYO excellent sales opportunities,” comments contain two-in-one components for added bag is equally perfect for travel retail and Munday. versatility. The Furla Dama tote and the complements another amazing collection Furla Fantasia maxi clutch come with a from Furla.” Furla YOYO bags detachable Metropolis bag, and the Furla Furla will be presenting at the Artesia bag contains a removable inner Salone Dei Tessuti where colored panel with slots for wallets, smartphones, panels, mirrors, and columns and other daily necessities. The men’s will evoke the 10 key shapes, Furla Zafiro bag also contains a micro colors, textures, and details of the Metropolis bag. A larger version of the collection. iconic Metropolis bag features a geometric In August, Furla opened a new 3-D printed strap and attention to detail. 12sqm in location in Turin Airport The YOYO is a travel retail exclusive with Gebr Heinemann, just one mini crossbody lightweight bag with a zip of numerous new doors opened

Travel and adventure combine for MINI by TUMI An iconic car company comes The new collection contains seven together with a world-class business and travel and two accessory silhouettes travel product brand in the new MINI by available in signature MINI colors and TUMI collection. The exclusive licensed prints of Black/Volcanic Orange racing premium line is designed to complement stripes and Black/Deep Blue Union Jack the look and feel of the automotive brand. flag. Designed in America and engineered “Driven by travel and adventure, using TUMI’s FXT ballistic nylon, each the MINI by TUMI collection is MINI style features a secondary bag, rooted in innovation, iconic design while MINI by TUMI accent kits allow and functionality,” stated TUMI Chief customers to customize their bags. Executive Officer and President, Jerome The collection is available globally Griffith. “Bags and cars are natural in domestic markets and travel retail and extensions of the people who use them; online at www.TUMI.com. TUMI will be they are expressions of personality and exhibiting at TFWA RG14 Riviera Village. individuality.” Emma Lomax bags shine for World of Patria World of Patria International is taking point targeted for both medium to high- Lomax cosmetic, makeup and SOS bags a new direction with its range of high income shoppers aged from 21 through 60. in Fenwick’s and counter displays in fashion travel and make-up bags from Top selling make-up pouches are available Selfridges have proved phenomenally trendy UK designer Emma Lomax. The in designs including Luscious Lips and successful, clearly driving incremental successful collection, which has received Lipstick 16 Lips. The transparent SOS bag impulse sales. Fenwick reports triple digit media-coverage and high-profile listings in can be sold individually, with contents, or growth in sales of cosmetic bags this year, the UK market from Selfridges, Harrods, as a basis for an amenity kit or gwp. The with new designs added each month to Fenwicks, and other high-end stores, is SOS bags, designed with travel-themed maintain interest and freshness.” now available in travel retail exclusively airplane and anchor motifs, are ideal for The bags, which have listings through from WOPI. travel retail customers. International Diplomatic Supplies, will The range of hand-finished, Sally Curson, International Account be on display at the WOPI stand in Blue embroidered bags and accessories are Manager, comments on the success of Village, G13. available in fun, bold designs with a price the brand: “Table displays of Emma

TFWA/FDFA Issue October/November 2015 82 INSIDER

Paul & Shark’s “Travel Easy” range ideal for on-the-go With crease-free garments designed polyester and nylon 3D mesh jacket. with specially treated fabrics that hold up The Luxury Collection is composed through long journeys, Paul & Shark’s of high-quality fabrics including 100% silk Travel Easy Care range is ideal for the knitwear, piqué cotton shirts, and supima on-the-go travel retail customer. The trousers. The collection’s traditional colors range, which is part of the SS2016 Men’s are paired with clean and sophisticated Collection, includes coats, gillets, shirts, lines. Jackets are available in leather and and trousers, all constructed with Made in cotton or cashmere and silk and include Italy craftsmanship. technical details such as laser perforations. Travel Retail Director Catherine Paul & Shark will be showcasing in Bonelli believes the Travel Easy Care range a new enlarged stand in Riviera Village, and Paul & Shark’s other collections being RH08, where invited guests will receive shown in Cannes will inspire and excite a personally embroidered limited edition travelers in the airport retail environment. polo shirt. The personalization intricate “TFWA World Exhibition is tooling machine is a successful component the highlight of Paul & Shark’s year. of the Paul & Shark brand. Introducing our new collection to existing “Offering embroidery both in Cannes and potential customers is a very exciting each new collection continues to ‘wow’ last year and at TFWA Asia Pacific has time for us. As our travel retail distribution and shows off the quality and uniqueness of proved a very powerful and effective continues to grow globally, it is vital that Paul & Shark - this year we have definitely method of showing potential and current achieved this and I am confident that the customers the quality of our products. We Travel Easy Care line will stand out as a received such positive feedback that we must-have essential item.” just knew we had to repeat the offer this The luxury sportswear and lifestyle year. Our tooling machines take up so little fashion brand will also be showcasing its space that they are easily incorporated into core Sportswear line, which includes a our stores, giving us a real uniqueness. It’s broad color palette expressed on stylish a tool that can easily be incorporated into and modern garments. These include a airport retail and we are about to announce rubber-coated linen double-breasted jacket, an activation with a key operator this a classic Vichy print windbreaker, and a summer,” says Bonelli.

Scorpio Worldwide to showcase “Watches Galore” in Cannes Watches have always been one of the available with new dial colors, to appeal to and the introduction of its own range of main focuses for travel retail distributor a broader demographic. watches; Chocks Away and Lady Luck Scorpio Worldwide, which is showcasing Following its successful launch at inspired by the Vargas ‘pin-up’ girl, round its portfolio of exciting new time pieces in TFWA Asia Pacific, Scorpio Worldwide out the new watch offerings. Cannes. will push its exclusive to inflight Yamaha The hugely successful Aviator F Series Factory Racing VR/46 Collection by TW is introducing a Vintage Collection that Steel watches at Cannes. pays homage to 1940s and 1950s pilot TW Steel is also introducing a watch styles. selection of their world famous “Big in Chairman, Stuart McGuire comments, Oversize Watches” Canteen watches, some “Aviator has stood out as our biggest of which are exclusive to travel retail. selling brand for the last five years, offering Scorpio is also launching the 10 best- exceptional quality and value. In order to selling domestic watches from Timberland maintain and grow the brand’s popularity to inflight, as well as a range of inflight we have regularly updated and extended exclusive watches by Daisy Dixon. It the range over this time to ensure that we is also bringing back the fashionable continue to provide our customers with Superdry brand to inflight, showcasing on-trend, fashionable watches. This latest a new range of urban watches with four collection takes the brand to a new level of silicon and two multifunctional styles and sophistication.” two silicon Nato strap models to choose The Aviator range will also show 2 from. new mesh bracelet watches for men and 2 Seven new models from Karen Millen interchangeable strap watches for women, and a revamped Beverly Hills Watch range,

83 October/November 2015 TFWA/FDFA Issue INSIDER

Hennessy tops the IWSR’s World Class Brand ranking Hennessy has been named the top-per- year due to a loss of global volumes be- was “riding the crest of the U.S. whiskey forming global spirits brand in this year’s tween 2013 and 2014, says the IWSR. revival,” with innovations such as Tennes- IWSR World Class Brands rankings. The Hennessy rose to the top of the list see Honey and Tennessee Fire helping to LVMH-owned cognac rose from last year’s despite the crackdown on conspicuous bring in non-traditional consumers, such third position, edging out Jack Daniel’s for consumption in China where the brand as females, and participate in new drinking the top spot. Jameson, Grey Goose and Jim fell nearly -21% in 2014 and the economic occasions. Beam rounded out the top five brands. problems in Russia – two key markets for Jameson also remains one of the real The IWSR’s World Class Brands list the brand. Hennessy achieved an overall momentum brands in the U.S. and, last is the definitive ranking of top-performing market volume of 5.2m cases in 2014, an year, surpassed the 2m-case mark there. global spirits trademarks. 142 brands met average price per case of just under $800 Not one Scotch brand ranked in the the IWSR’s definition of ‘international’. and volume growth of 3% in 2014. The top 10 of this year’s World Class Brands The IWSR then scored each of these brands brand was particularly strong in the U.S., list despite having the largest overall on its overall market volume in 2014, aver- rising by just under 10% in 2014 over number of brands on the list with 40. The age price per case and volume growth over 2013 to reach 2.5m cases. Hennessy also growth of U.S. and, to a lesser extent, Irish the last year. saw high rates of growth in South Africa, whiskey may also be a contributing factor Last year’s top World Class Brand, Nigeria and travel retail. behind the Scotch slowdown, says IWSR. Johnnie Walker, reached only no. 34 this The IWSR #2 brand Jack Daniel’s

IWSR: Whisky leads the way in Americas Duty Free spirits

Spirits sales in Americas Duty Units: Case volumes: 000’s of 9-litre cases Free grew 4.5% in 2014, reaching Currency: Retail value: 000’s of USDs (variable). 5,177,800 9-liter cases, with whisky Retail prices: USDs per bottle. Bottle sizes shown in cl. (variable) leading the way, according to the lat- Criteria: Category 1: Spirits- Region: DF Americas- Tax Status: Duty Free est data from the IWSR. Copyright: The IWSR 2015 Each of the sub-regions that Americas Duty Free Region by minor region make up the Americas also increased Volume Volume Mkt Shr (Vol) 2014 CAGR Volume %Chg Volumes last year. North America, the largest Tax Status Category 1 Region Minor Region 2013 2014 Minor Region on TOTOFFLD 2009 to 2014 2013 to 2014 region with 62.6% of spirits sales, increased 4.5% from 2013 to 2014. Duty Free Spirits DF Americas 4,952.5 5,177.8 100.0% 8.6% 4.5% Latin America, with 18.7% of re- Duty Free Spirits DF Americas DF North America 62.6% 8.3% 4.4% gional duty free sales, rose 4.7%. The Duty Free Spirits DF Americas DF Latin America 18.7% 11.5% 4.7% Duty Free Spirits DF Americas DF Caribbean 14.8% 7.4% 3.7% Caribbean (14.8% of sales) was up Duty Free Spirits DF Americas DF Central America 3.8% 5.7% 10.0% 3.7%. Central America sales jumped 10% versus 2013. Americas Duty Free Region by minor region Whisky, the most popular spirit Volume Volume Mkt Shr (Vol) 2014 CAGR Volume %Chg Volumes sold in Americas Duty Free with 42% Tax Status Region Category 1 Category 2 2013 2014 Category 2 on TOTOFFLD 2009 to 2014 2013 to 2014 of sales, was up 3.7% in 2014. Vodka, Duty Free Spirits 4,952.5 5,177.8 100.0% 8.6% 4.5% with 16.1% of sales, increased 2.1%, Duty Free DF Americas Spirits Whisky 42.0% 11.9% 3.7% while Rum (13.3%) was up 1.8%. Duty Free DF Americas Spirits Vodka 16.1% 3.9% 2.1% Brandy, which makes up about 10% Duty Free DF Americas Spirits Rum 13.3% 5.5% 1.8% of Americas Duty Free spirits sales, Duty Free DF Americas Spirits Flavored Spirits 11.8% 4.1% 4.6% increased 17.8% last year. Duty Free DF Americas Spirits Brandy 9.9% 15.9% 17.8% Duty Free DF Americas Spirits Others 6.9% 10.1% 3.9%

TFWA/FDFA Issue October/November 2015 84 Stay ahead of the competition with the most comprehensive travel-retail databases and summary report.

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85 October/November 2015 TFWA/FDFA Issue

Travel Markets Insider - Duty free ad - Canne issue.indd 1 9/25/2015 4:07:09 PM INSIDER

Brown-Forman’s American Whiskey portfolio thrives

Brown-Forman’s American whiskey portfolio has helped the company grow its travel retail business despite troubling times for many of its competitors around the globe, says Marshall Farrer, Managing Director, B-F Global Travel Retail. “We ended our last fiscal year (April 30, 2015) on a strong note. The first quarter delivered some challenges with respect to the strength of the U.S. dollar and the loss of the Russian traveler. However, the performance of the Brown-Forman Travel Retail portfolio remains strong and American Whiskey is still enjoying enormous popularity and growth. We are especially pleased with the support behind our entries into ultra-premium American Whiskey through Jack Daniel’s Sinatra Select and Sinatra Century,” he says. Farrer says Brown Forman’s strong American whiskey portfolio perfectly positions his company to take advantage of the market’s trend towards whisk(e)y. Jack Daniel’s is currently one of the top to new consumers around the world and Whisk(e)y was the most popular spirit sold three selling spirits in travel retail and educate them on the exciting attributes of in Americas Duty Free in 2014 with 42% of Woodford Reserve is among the top five the category. We consider travel retail as an sales, and was up 3.7% last year (IWSR). for American Whiskey. On the subject of outreach opportunity to new markets in far- “Without question our North North American Whiskies, we also have flung regions and an engaging channel to American Whiskeys are the star performers confidence that the remarkable popularity delight our more established consumers.” within the Brown-Forman Global Travel of Brown-Forman’s founding brand, Old At the TFWA World Exhibition in Retail portfolio. In travel retail markets Forester, will spread from the United States Cannes this year Brown-Forman will be around the world American Whiskey is to travel retail markets around the world,” introducing Jack Daniel’s Sinatra Century, the fastest growing category and Brown- he says. a collaboration between Jack Daniel’s and Forman is at the forefront of that growth “Brown-Forman has been the leader the Sinatra family to celebrate the 100th lead by Jack Daniel’s Tennessee Whiskey in American Whiskies since 1870. Global birthday of Frank Sinatra, who was born and Woodford Reserve Bourbon. In fact, travel retail allows us to expose our spirits in Hackensack, NJ on December 12, 2015. Sinatra Century, at 100 proof, is the second offering to commemorate the special relationship between Jack and Sinatra after Jack Daniel’s Sinatra Select was introduced globally in 2013. “Jack Daniel’s Sinatra Select is doing remarkably well in the travel retail market and has met our expectations to date with full distribution. We recently expanded it to celebrate the 100th birthday of Frank Sintra with a more exclusive offering called Jack Daniel’s Sinatra Century (that retails in duty free for $450). It has exceeded our early hopes and established new price points for premium American Whiskey,” says Farrer. “Each bottle of Sinatra Century will be enclosed in a luxurious gift box and Jack Daniel’s Sinatra Century display in Amsterdam will also include a selection of previously unreleased Sinatra tracks, entitled ‘Sinatra

TFWA/FDFA Issue October/November 2015 86 SMALL BATCH BOURBON AWARD-WINNING FLAVOR

DISTILLER’S SELECT DOUBLE OAKED

Woodford Reserve is crafted in small batches, ensuring time Double Oaked is twice-barreled bourbon with rich and colorful and care is taken in customizing each of the five sources of flavor. Uniquely matured in separate, charred oak barrels - the flavor to produce Woodford Reserve’s distinct taste and second barrel deeply toasted before a light charring – extracts crisp, clean finish. additional amounts of soft, sweet oak character.

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87 October/November 2015 TFWA/FDFA Issue INSIDER

Live at the Sands in 1966’ along with a its expertise in whiskey making, the new for these whiskeys up front. We are making booklet telling the story of the friendship whiskeys from Slane Distillery will have a a $50 million (US) commitment to the of the two American icons. Some of our bright future. I am confident Travel Retail Slane Distillery project and feel it will be a larger and more impactful displays will will play a key role in establishing demand great addition to our whiskey portfolio.” also feature Frank’s music as part of the display.” While American whiskey has led the way for Brown-Forman, the company last month got into the Irish whiskey business with the ground breaking for Slane Distillery, the company’s initial entry into distilling Irish whiskey. Slane Distillery is the first distillery built by Brown-Forman outside of the United States and is planned to open in late 2016. “The Irish Whiskey category has been a very fast growing segment in the global whiskey category over the last few years Rendering of the Slane Distillery in Ireland, which is expected to open in late 2016. and Brown-Forman is confident that with

Devallet joins Rémy Cointreau as company adopts Global Shopper strategy

Despite currency issues, Rémy “I am discovering a new market Rémy Martin Cellar Master’s Selection Cointreau Americas Travel Retail’s with its own problems, challenges and The Rémy Martin Cellar Master’s business in the region has been positive opportunities which is very motivating. It’s Selection has been fully distributed in since he joined the company in June, says obviously a very different market to beauty the region since May 2014. The new Sebastien Devallet, the new Travel Retail but Rémy Cointreau Group represents high Travel Exclusive line was launched in the Director of Rémy Cointreau Americas. end liquors such as the famous Louis XIII Americas with one year exclusivity. Asia, Devallet joined Rémy Cointreau cognac, Rémy Martin cognac, Cointreau Europe and Middle East markets only after seven years as General Manager of as well as other premium brands such as launched in 2015. the Fragrance division in L’Oréal’s Parbel Bruichladdich single malt whisky, The “The year has been on track as the subsidiary in Miami, replacing Botanist gin and Mount Gay Rum. Iconic Rémy Martin Cellar Master’s Selection François van Aal, who has brands such as Louis XIII, Rémy Martin moves into its second year in the Americas. relocated to Europe to take Cognac or Cointreau have wonderful This new range replaced Rémy Martin up the position of Regional brand heritage to share with our customer. VSOP and XO so that the Rémy Cointreau Travel Retail Director for The luxury vision of the group to become Group can offer a new Travel Exclusive that market. Devallet, who the world leader in spirits of exception is line to the travelers,” he says. spent 18 years in the beauty totally in line with my ambition and DNA.” “We are still working on consolidating business, says the transition Rémy Cointreau has encountered a the line towards our customers and we to Rémy Cointreau has number of challenges affecting its Americas deploy marketing activities to develop the been very interesting. travel retail business, with currency range awareness.” issues hitting the company from multiple “Besides the Cellar Master range, nationalities. Louis XIII is performing well, showing Russian Standard Vodka “As any category we do face a year to date growth in line with our will be exhibiting the difficult macro-economic situation that objectives despite the lower spending by Cloisonné Limited Edition, challenges our activity. A strong dollar, Chinese customers. the third in the company’s the devaluation of the most important “The liquor brands do perform series celebrating classic currencies in Latin America and China well especially with strong growth of Russian craft, which force us to reconsider our Travel Retail Bruichladdich, a very promising launch of draws its inspiration from approach. We are working on adapting The Botanist and significant development the Cloisonné artwork our brand portfolio offer through a of Mount Gay Rum.” which was highly prized more ‘Global Shopper’ strategy taking by the Tsars of the into consideration every nationality’s Imperial Russian Court. specificities.”

TFWA/FDFA Issue October/November 2015 88 HOW DO YOU TOAST THE CENTENNIAL OF A CULTURAL ICON LIKE SINATRA?

Jack Daniel’s Sinatra Century is drawn from a rare selection of only 100 barrels handpicked by our Master Distiller. This rare 100 proof whiskey gains its rich oak character and smooth delicate finish from specially crafted, grooved ‘Sinatra barrels’. Along with this wonderful whiskey, we’ve included a never before released concert from Sinatra at the Sands in 1966 and a commemorative book honoring Sinatra’s 100th year. This luxury gift package is available exclusively in Duty Free stores for a limited time.

Share the toast responsibly.

89 October/November 2015 TFWA/FDFA Issue INSIDER

Toronto Pearson hosts first Americas outing for John Dewar & Sons Fine Whisky Emporium

Bacardi Global Travel Retail reports that it has staged a highly successful John Dewar & Sons Fine Whisky Emporium activation at Toronto Pearson International Airport this summer in partnership with The Nuance Group. This is the first location in the Americas for the John Dewar & Sons Fine Whisky Emporium shop-in-shop concept. John Dewar & Sons Fine Whisky Emporium showcases the revitalized range of Dewar’s premium blended whiskies by highlighting Dewar’s Scotch heritage and craft credentials. The additional presence of three of the newly launched ‘Discovery Malts’ from Bacardi —Aberfeldy, Craigellachie and Glen Deveron — plays a supporting role to Dewar’s, the “hero Bacardi launched Grey Goose VX in Americas travel retail with high profile activations in brand.” Los Angeles International Airport and Las Vegas McCarren (above). The John Dewar & Sons Fine Whisky Emporium at the airport in Toronto was open at Nuance’s Terminal 1 store for a period of 17 days in June, immersing travelers in the world of Dewar’s, billed as the most awarded blended Scotch whisky. The Emporium featured a branded Retail exclusive Glen Deveron 16 Year positive. Around 45% of sales were sampling bar and display gondola where Old. made by LDA travelers aged below 40, the design was inspired by the Nineteenth During the course of the promotion proving the activation reached its target: Century wine and spirits shop that was around 4,500 travelers sampled the an emerging group of younger shoppers opened in Perth in 1846 by company whiskies in tutored tastings brought to life moving into the ‘second stage of luxury’. founder John Dewar. The whiskies selected by highly trained brand ambassadors and Age statements are a key purchase for sampling were Dewar’s 15 Year Old, educational props. motivation for this group of shoppers, the first permanent new age statement to Conversion and sales rates at the John along with quality cues and engaging brand join the Dewar’s range since the turn of Dewar & Sons Fine Whisky Emporium stories. the millennium; Aberfeldy 12 Year Old; exceeded expectations and customer Geoff Biggs, Regional Director, Craigellachie 13 Year Old and the Travel feedback from the activation was very Americas Bacardi Global Travel Retail commented: “John Dewar & Sons Fine Whisky Emporium proved a strong success at Toronto airport, one of the largest international gateways in North America. Our research tell us many whisky drinkers in Travel Retail are crying out for something new and exciting— The John Dewar & Sons Fine Whisky Emporium concept just does that introducing them to exciting new brands of quality and heritage in an engaging and compelling way.” The first John Dewar & Sons Fine Whisky Emporium outlets opened at Paris Charles de Gaulle and Orly airports in April this year in partnership with Aelia. The first Asian location followed in July at Taiwan Taoyuan airport with EverRich Duty Free.

TFWA/FDFA Issue October/November 2015 90 INSIDER

Chivas Regal launches ultra-prestige Scotch whisky: Chivas Regal The Icon

Chivas Regal introduced ultra-prestige Scotch whisky Chivas Regal The Icon for the first time in the Americas at an event at Vancouver Airport in September. The inaugural edition of Chivas Regal The Icon is available exclusively in the Americas at Vancouver International Airport’s World Duty Free Group (WDFG) store from September - December 2015. Chivas Regal The Icon is a blend from some of the rarest and oldest whiskies available and is the pinnacle of the Chivas Regal range, says the company. This ultra-prestige Scotch whisky is a blend of whiskies from more than 20 distilleries across Scotland, including some rare whiskies from distilleries now lost forever. The blend includes the rarest malts from Strathisla, the oldest continuously operating distillery in the Scottish Highlands, and hand-selected single malts Chivas Regal The Icon to the Americas in that shares our passion and commitment to from Longmorn and Glen Keith. partnership with WDFG,” states Guillermo providing an exceptional experience for our “Chivas Regal The Icon is a truly Brea, Brand Director at Pernod Ricard global customers. We are confident that this exquisite blend - perfectly smooth with America Travel Retail. “As the pinnacle of exquisite whisky will delight connoisseurs an intense concentration of sumptuous the brand, this exceptional blend represents and novices alike.” flavors that develop into an exceptionally a new expression in luxury whisky A limited number of bottles of this long, lingering finish. I am proud to present which will continue to impress whisky Scotch whisky will be produced each year. this luxurious expression of the Chivas connoisseurs.” Chivas Regal The Icon is presented in a Regal house style to you,” says Colin “We’re excited that our customers at hand-blown crystal decanter created by Scott, Chivas Regal’s Master Blender, who Vancouver International Airport will be expert craftsmen at Dartington Crystal. created the blend. the first in the region to access this unique, Green glassware, an homage to the original At 40% ABV in 70cl bottles, and fine whisky,” says Jose Manuel Slater, Chivas Regal botte, is etched and finished with an RRP of $4,580 (CAD), this luxury Liquor Category Manager – International, with precision crafted metalwork and Scotch whisky will be available in the rest World Duty Free Group. “An interesting adorned with a signature luckenbooth of the region starting January 2016. and prestigious product range is core to our stopper, a traditional Celtic symbol of love. “We are delighted to introduce retail offer and Chivas Regal is a partner

91 October/November 2015 TFWA/FDFA Issue INSIDER

Absolut goes Electrik with latest limited edition

Absolut has announced its newest Pernod Ricard USA. “For us, nights are limited edition bottle, Absolut Electrik. Two unique opportunities to celebrate creativity new bottles are available in either “striking” and self-expression, and we continue to silver or electric blue, and are filled with seek ways to reimagine and re-energize Absolut Original Vodka. Absolut Electrik what a typical night out, or in, can be. Our will be available starting October 1, 2015 Electrik Bottle is the latest expression of our domestically in the U.S. in time for the ‘Nights’ campaign and we hope it inspires holiday season, and starting November in unexpected, transformative nights for our travel retail in the Americas. consumers.” The Absolut Electrik bottle is the latest Absolut Electrik made its preview at continuation of Absolut Nights, an ongoing the Emmy Awards on E!’s Countdown to the campaign dedicated to reimagining the Red Carpet and Live from the Red Carpet. future of nightlife. In simple, sleek metallic, The show hosts celebrated the night’s the bottles serve as a muse for raising the nominees with an “Electrik-fied” toast using energy of nights out and in. The launch will the Absolut Signature E! Cocktail – Absolut be supported with Absolut Electrik House, a Best Dressed. The bottles are officially concept the company says will transform the available in the U.S. starting October 1, typical house party into a once-in-a-lifetime “At Absolut, nightlife is in our DNA,” 2015 through the holiday season for an experience. said Joao Rozario, VP, Absolut Vodka, MSRP of $19.99(750ml) and $24.99 (1L).

Disaronno partners with Roberto Cavalli to outfit limited edition bottles

Disaronno has partnered with famed partnership with Roberto Cavalli for our 50ml mini bottles in coordinated looks for designer Roberto Cavalli on its latest third Disaronno limited edition. To include the season. These 3-packs of minis (offered limited edition bottle, which will be Cavalli in the list of our collaborations is in two versions) are an ideal impulse introduced at the TFWA World Exhibition a real honor and a truly special moment purchase gift item or self-treat - and a in Cannes (Red Village J1). in the history of our brand,” says Augusto natural for positioning on shelf or at the Mimicking Roberto Cavalli’s famous Reina, CEO of ILLVA Saronno. cash till point, says the company. designs, the bottle has been dressed in Listed in key hubs across the “We are very pleased to be exhibiting a bold, vibrant and colorful style with Americas, Europe and the Gulf, the limited at Cannes for the second time this year inspiration drawn from the Roberto Cavalli edition bottle with a retail price estimated where we will have the opportunity to SS 2015 Pre Collection. at US$26 will be supported by high display the new Roberto Cavalli limited Influenced by the enchanting undersea visibility merchandising, and exciting in- edition bottle as part of the overall Illva world and exotic safari locations, the bottle store activations. Saronno. The previous two versions is draped in a new graphic animal print. For the first time, the designer – Moschino and Versace – have been “We are delighted to announce our collaboration will also be available in 6 extremely successful in travel retail and we are confident that the incredible new version will be equally well received,” says Martin Howey, Global Travel Retail Director, Illva Saronno. The Disaronno Icon is in its 3rd iteration this year, after the past partnerships with Italian fashion brands Moschino and Versace. The Icon project will continue its long-time support of the charity ‘Fashion 4 Development’, sponsored by the United Nations. Disaronno will once again donate part of the proceeds to the development of this unique project in Africa.

TFWA/FDFA Issue October/November 2015 92 93 October/November 2015 TFWA/FDFA Issue Edrington WEBB launches Macallan Rare Cask Black

Edrington WEBB Travel Retail that is part of the 1824 Masters Series. Whisky Maker who is the architect of Rare Americas is launching the Macallan Rare Macallan Rare Cask Black, a “dark, Cask Black. Cask Black, a limited edition scotch whisky smoky, and unexpected” Macallan, was The Macallan Rare Cask Black, created from less than 100 casks maturing different than any other Macallan today, at The Macallan Distillery. has a subtle yet distinctive smoky flavor. “Rare Cask Black tells a different The whisky was matured in 100% sherry story of our spirit and casks, but more seasoned European and American oak than that it tells a story of rarity. Smoky casks, of which most are first fill. Macallan is rare, there is very little in Bottled at 48% ABV and non-chill existence and once used these casks will filtered, Rare Cask Black is exclusive to Nº1 INTERNATIONAL FRUIT LIQUEUR IN GERMANY ** be no more. This is a whisky which is out Global Travel Retail with a RRP of $450. +125% DUTY FREE Nº1 LIQUEUR IN THE NETHERLANDS ** of character for The Macallan due to the It will be distributed in the Americas by SALES INCREASE FASTEST GROWING LIQUEUR IN BRAZIL * subtle seam of smoke on the palate, but it Edrington WEBB Travel Retail Americas FASTEST GROWING LIQUEUR IN MEXICO * still bears the essential Macallan DNA,” (EWTRA) and will be available as of IN 2 YEARS *** OVER 600,000 CASES WORLDWIDE IN 2014 *** says Bob Dalgarno, the Macallan Master November 2015 at selected airports.

* IWSR 2014, liqueurs traditional category ** The Nielsen company, retail August 2015 *** Internal sources

New brands and listings propel MONARQ business M in spite of regional challenges Y CM

Spirits distribution and marketing that is produced in Martinique and Del and is now listed on all the main borders MY company MONARQ Group continues Maguey, internationally the leading with Brazil. It is also listed in Caribbean CY to add new brands and categories to its premium Mezcal brand. Finally, we added airports, including Grantley Adams in spirits portfolio, and MONARQ managing two more brands in the whisk(e)y category: Barbados, LF Wade in Bermuda, Piarco CMY director/owner Robert de Monchy says the the Highland whiskies from Tomatin in Trinidad and Tobago, Owen Roberts in K company has seen modest, but double-digit Distillery portfolio are the latest addition Cayman Islands, and Cyril E King airport sales growth, for its brands in the Americas to our Scotch portfolio, and we added the in St Thomas. this year. super-premium bourbons and whiskies De Monchy says that MONARQ’s “The first three quarters of 2015 have from Michter’s.” business has been impacted by the same been very good,” he confirms. MONARQ ran a number of challenges hurting the travel retail business “In duty free/travel retail the star promotions for its brands in the Americas, throughout the region, especially in the South. performers are the Heineken portfolio, Ole including three different Heineken “The main challenge is the socio- Smoky, Bols, Limoncello di Capri, Alizé promotions with London Supply at their economic situation in parts of the Latin and Crystal Head Vodka. We are also very Iguazu flagship store, and its popular American region, where a number of pleased with the performance of Teeling Limoncello di Capri promotions with economies are slowing down. Especially in Irish Whiskey, which is picking up steam, sorbet ice machines at London Supply and Brazil, which is heading towards a serious and a number of the brands in the Bacardi several other accounts along the Uruguay- economic recession, seriously affecting the portfolio, such as Cazadores Tequila, DOM Brazil border. duty free/travel retail sales, including on Benedictine and B&B. Among MONARQ’s new listings in the other side of its borders, especially in Among the “exciting” new brands in 2015 was Alizé at JFK with International Uruguay and Paraguay.” the MONARQ portfolio, de Monchy says Shoppes; Ole Smoky Original Tennessee But the regional challenges have not that the Quintessential Brands portfolio Moonshine with SMT Duty Free’s stopped MONARQ’s growth, he continues. has been tremendously well received cruise shops in San Juan, Puerto Rico, The company moved its Miami office by the trade and consumers, especially and the arrival store at Grantley Adams to Coral Gables to better accommodate Greenall’s and Bloom gins, Opihr Oriental International in Barbados; Zubrowka Bison its growing organization, and hired a new Spiced Gin, and Alizé, which is making its Grass Vodka and Jefferson’s Small Batch regional manager, Ralph Ottmueller. The comeback. Whiskey with Shopping China in Paraguay former Brand Development Director for “We also added two beautiful super and Poças port, AIX Rose de Provence and Latin America at Beam Global is now premium brands from our own region: Molinari Caffe with London Supply. MONARQ’s country manager for the Rhum J.M is a French style Rhum Agricole Crystal Head Vodka continues to grow Mexican market.

Scan our QR code using your smartphone TFWA/FDFA Issue October/November 2015 94 Please drink responsibly. and discover more about Licor 43. www.licor43.com Nº1 INTERNATIONAL FRUIT LIQUEUR IN GERMANY ** +125% DUTY FREE Nº1 LIQUEUR IN THE NETHERLANDS ** SALES INCREASE FASTEST GROWING LIQUEUR IN BRAZIL * FASTEST GROWING LIQUEUR IN MEXICO * IN 2 YEARS *** OVER 600,000 CASES WORLDWIDE IN 2014 ***

* IWSR 2014, liqueurs traditional category ** The Nielsen company, retail August 2015 *** Internal sources

CMY

Scan our QR code using your smartphone Please drink responsibly. 95 October/Novemberand discover more about 2015 Licor TFWA/FDFA 43. Issue www.licor43.com Accolade brings New World wines to Cannes

Accolade Wines is featuring its U.S., and the company is aiming to further premium products have never left the extended range of wines at the TFWA expand its distribution. country. We are spreading the word around World Exhibition, including recently “TFWA World Exhibition is the the world about the really exciting wines acquired brands Mud House, Grant Burge, pinnacle of the travel retail year; with so we make that you might not be able to buy and Viña Anakena. many key industry figures in one place at home, but come from a brand you know Calling themselves “new world it gives us the perfect opportunity to and trust. Our wider vision is to be the wines specialists,” Accolade’s portfolio showcase our broad portfolio of wines. We leading provider of Premium, Commercial includes wines primarily from Australia, make single varietal wines, great blends of and Value wines. We can do this especially New Zealand, South Africa, Italy and the different varieties and blends of different well with Hardys, allowing travelers with regions, which means we can offer our different budgets to experience great wines customers a great range wherever they at a price they can afford,” he says. operate and whoever their passengers are,” “We now have five travel retail says Rupert Firbank, Commercial Director. exclusive Hardys wines including Hardys For New Zealand’s Mud House, Premium Selection and Hardys The Accolade’s new products include Whites Journey, ranging from $20 to $200 as well from Marlborough and Pinot Noir from as good allocations of other premium wines the Central Otago region; the travel retail in the portfolio.” exclusive Mud House Hill No.5, which is Accolade Wines has become the first solely sourced from the hillside blocks of company to have a footprint in all major Mud House’s Marlborough Vineyard; and New World wine regions with its latest a new Twin Pack featuring both Sauvignon acquisition of Chilean brand Viña Anakena, Blanc and Pinot Noir. which is launching to travel retail in The company will also be focusing Cannes. The Chilean wines have a presence on its Flagship Hardys portfolio of wines, in 50 domestic markets, including the U.S. which are sold in over 150 markets around Accolade will also be showcasing the world. its portfolio of top Barossa Valley wines “Over the last couple of years we from Grant Burge, which were acquired have slowly introduced a more premium earlier this year, along with its recently re- selection of wines from the Hardys range. packaged Italian range, Da Luca, including Some of the most fantastic wines in the new Da Luca Prosecco. Australia are from Hardys, but the more Haleybrooke International to represent U’Luvka Vodka in Travel Retail Haleybrooke International (HI) has the past two years. U’Luvka Vodka!” says Wojtek Wydro, announced that it will represent U’Luvka “I am looking forward to bringing Sales & Marketing Director of U’Luvka Vodka in duty free and travel retail in the this vodka to my duty free customers. For Vodka. Americas and Caribbean. one, the vodka is outstanding. It’s won over “U’Luvka Vodka is a winning brand. sixty-six international awards including It’s an internationally popular vodka ‘best super premium vodka in the world.’ which I know will do well in the duty free In addition, the bottle is aesthetically sector. Many travel retail operators prefer impressive; it catches your eye and people to sell whiskies and cognacs due to the will stop to take notice of it,” says Roger higher price points but U’Luvka Vodka Thompson, Vice President of Haleybrooke has a very high retail for a vodka and the International. packaging and quality vodka justifies what “I am looking forward to working we believe is a perfect retail position,” says with Haleybrooke International and Patrick Nilson, President of Haleybrooke introducing U’Luvka Vodka to duty free. I International. believe it is a critical decision to choose the U’Luvka Vodka, a super-premium right partners and I am confident that we vodka, made from the finest rye, wheat are putting our brand in very good hands. and barley grown in Northern Poland, This alliance will have a positive outcome will be selling in duty free at US$ 45 for for all consumers who shop duty free. They a 750ml. The bottle design has won seven will have the benefit of access to one of the international awards for best packaging in best super premium vodkas in the world,

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The Art of Patrón: Celebrating the craft and craftsmanship What do gourmet meals, indulgent cocktails, Rock ‘n’ Roll albums, and Patrón tequila have in common? Each is the work of a master craftsman dedicated to Patron’s virtual the production of unique “art”. The “Art reality experience of Patrón” brand platform celebrates the with London Supply. creation of works across various media, including the artistry behind the bottle and Art of Patron is liquid of Patrón tequila. Austin. Because each step of the production of Patrón is an artistic process, from the harvest to the distillation to the molding of bottle by glass artisans, Patrón understands and celebrates the craft and craftsmanship of artists in food and beverage, music and culture. This camaraderie makes Patrón a natural patron of the arts. Patrón is a sponsor of the Food and Wine Classic Patrón” while models adorned in artistic a virtual reality experience. Using Oculus in Aspen, Colorado, and is partnering dresses crafted with iconic orange, yellow, technology, guests will be able to journey with Rolling Stone and Rolling Stone and green Patrón boxes walked the room. to the Patrón distillery in Jalisco, Mexico Films video platform, in addition to other Guests were encouraged to create their own for a 360-degree sensorial immersion of the culinary and beverage events. art, with a Patrón bottle decorating station step-by-step process of Patrón production. At the “Art of Patrón” event held in and colorful photo shoot. Earlier this year, This experience is being rolled out for Austin, Texas on September 18, guests Patrón held a consumer bottle art contest, travel retail with in-store demonstrations, sipped inspired Patrón cocktails crafted and the winning pieces were on display for and has already been a success in Dufry by local mixologists and blended their all to enjoy. These creations can be found Brazil and London Supply. To experience own rim spice mixes. Famed Austin chefs in a digital gallery at www.artofPatron.com the virtual journey at Cannes, stop by the Bryce Gilmore and Mark Buley of Barley Patrón will be showcasing the artistry Patrón stand (H36 Green Village). Swine and Odd Duck served up “Quail Al that goes into every bottle of tequila with Lara Pasternak Patrón introduces DF exclusive Patrón Extra Añejo 5 Años

Ultra-premium tequila Patrón is roller mill method. shelf starting in early 2016. introducing Patrón Extra Añejo 5 Años, The tequila was aged in a combination The company is also bringing its a rare, limited edition extra añejo tequila of new American oak medium toasted new Patrón Citrónge Mango liqueur to exclusively for sale in duty free. barrels and used whiskey barrels for five Cannes, which was introduced this summer The tequila is made from the finest years. The result is a tequila notably light in domestic markets; and a new special 100% Weber Blue Agave from the harvest, in color for its aging, yet exhibiting intense edition collector’s tin celebrating Mexico. baked in aroma and complex flavors. Contemporary Mexican artist Verónica brick “Extra añejo tequilas are very difficult Villarreal Sada designed the Aztec-inspired ovens to create because tequila that has aged keepsake tin, which prominently features for about for too long in the barrel can take on too two Aztec deities, Quetzalcóatl, the three days much wood taste and lose much of their feathered serpent, and Tonatiuh, the sun and then natural agave flavor,” says Patrón Master god. It also features an eagle to represent crushed, Distiller Francisco Alcaraz. “But through ancient mythological symbolism. fermented the years of tasting different wood types, Inspired by traditional mosaics and and combined with placing barrels in different embroidery, Sada used bright colors to distilled microclimates within our aging room, we capture traditional Mexican patterns and using the have proudly created an extra añejo tequila prints. An interpretation of the ancient “tahona” with just the right balance of wood that Aztec calendar circles the side of the tin. process complements and doesn’t overpower the The special edition Patrón Mexican together tequila’s agave characteristics.” Heritage tin became available for purchase with the Less than 500 cases of this limited- starting in Fall 2015 at duty free stores more production spirit were produced, and will worldwide, and also at select spirit retailers modern only be available in global travel retail, on in domestic U.S. and Mexico.

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Johnnie Walker launches biggest global campaign in the history of the brand

Johnnie Walker launched its largest Syl Saller, Chief Marketing Officer, Middle East, added that the new campaign ever global marketing campaign ‘Joy Diageo, owners of Johnnie Walker, said: - drawing on decades of research - Will Take You Further’ in September. The “The launch of Keep Walking marked a challenged the conventional wisdom that campaign was launched simultaneously in fundamental shift in the way scotch was success guarantees you happiness and more than 50 countries and the company marketed and kick started a decade of instead celebrates the fact that happiness expects it to reach nearly 270 million transformational growth for both Johnnie actually helps people achieve success. consumers around the world within the Walker and the category as a whole. “Johnnie Walker has always stood first weeks of launch. “I am hugely excited about the for progress - it’s been the story of our In travel retail the campaign will potential of this new campaign to drive whisky since our founder John Walker be featured in a number of high-profile Johnnie Walker forward to the next started it all nearly 200 years ago, right airport activations that will offer travelers decade of growth. It is rooted in deep through to today as the best-selling exclusive insights into the joy of blending consumer insight and tells true stories spirits brand in travel retail. What two as it encourages them to find joy in their of people who have truly walked with centuries of experience have taught us journey. joy. At Diageo, we believe in building is that progress doesn’t have to be an ‘Joy Will Take You Further’ is an brands with purpose - meaning that goes endless uphill journey – we can enjoy evolution of the brand’s famous ‘Keep beyond product benefits - and this is a the steps we take and the more happiness Walking’ campaign and represents a new great example of an incredibly strong idea we find in them the more likely we are to perspective on personal progress, which that is brought to life with outstanding achieve our goal. Evidence is confirming has defined the brand’s philosophy for creative.” a conviction that sits at the heart of our more than 15 years and helped Johnnie The campaign features stars from the brand: ‘Joy Will Take You Further’.” Walker become the most valuable spirits worlds of sport and entertainment such Developed in partnership with the brand in the world (according to Impact as Formula One World Champion and brand’s global creative agency, Anomaly, Databank). McLaren Honda driver Jenson Button, ‘Joy Will Take You Further’ brings to Based on new insights into how Oscar-nominated actor Jude Law, Chinese life the art of blending and the blenders success is viewed by consumers today, the actor Zhao Wei, U.S. rock band OK Go who create Johnnie Walker through a campaign focuses on the concept that joy and Mexican supermodel Montserrat significant investment in mentoring and can be a catalyst to the progress they seek, Oliver alongside a cast of achievers who customer experiences, in addition to a and aims to generate a positive culture share the brand’s view of how happiness new television commercial, print and shift by promoting and encouraging the in life is a fuel for success. digital advertising, point of sale materials idea that finding joy in the journey is part Peter Fairbrother, Global Marketing and engaging digital content. of the recipe for success. Director for Diageo Global Travel and

Diageo GTME unveils new TR Exclusive John Walker & Sons Diageo Global Travel and Middle Sons XR 21 Year Old back in 2010, we have East has unveiled a new look travel retail seen strong sales across the globe, especially exclusive John Walker & Sons XR 21 Year in Asia and among luxury travelers. In line Old Blended Scotch Whisky. with our travel retail strategy of creating John Walker & Sons XR 21 Year Old new and premium offerings we wanted to is a commemoration of the knighthood create something special which will appeal awarded to Sir Alexander Walker, grandson to travelers. This represents the ultimate gift of the brand’s founder. Sir Alexander Walker for super deluxe whisky drinkers in a format was knighted by King George V in 1920. they cannot buy anywhere else and as such, The new 1 liter decanter is individually we will be putting significant resources numbered with a design inspired by the behind it in the channel. The size and growth art deco era, during which Sir Alexander of this price segment warrants an increased Walker was the brand’s Master Blender. focus and investment behind the new John The whisky is housed in a new polished Walker & Sons XR 21 Year Old bottle,” gold box emblazoned with a sculpted says Peter Fairbrother, Marketing Director cross that echoes Sir Alexander Walker’s of Diageo Global Travel and Middle East. appointment as a Knight Commander of the The TR exclusive 1 liter bottle comes Order of the British Empire. The whisky is – including some from distilleries no longer with a RRSP of $178 USD, while a 75 aged for a minimum of 21 years and drawn in existence, says the company. cl bottle is available in travel retail and from extremely rare Johnnie Walker reserves “Since we launched John Walker & domestically, at a RRSP of $138 USD.

99 October/November 2015 TFWA/FDFA Issue INSIDER

Beam Suntory brings whisky focus to Cannes

Beam Suntory, which launched its travel retail distribution operation in April, will reveal its plans for its whisky portfolio, particularly its bourbon, malt and Japanese whiskies, at the TFWA World Exhibition. The global spirits company, now the third largest, will also unveil the new direction for Courvoisier cognac. “We are delighted to introduce our new global spirits distribution operation and our GTR division at Cannes for the first time. GTR is a channel with huge growth potential and it is a key strategic focus for Beam Suntory. It’s been an exciting journey over the past six months and we are really looking forward to sharing our vision to grow the spirits category with our customers in Europe and around the world,” says Beam Suntory Managing Director David Wilson.

Bourbon As part of its latest campaign, Bourbon Legends, Beam Suntory will intensify its category education program to demystify bourbon, recruit consumers In Cannes, Beam Suntory is featuring portfolio will expand as travel retail and solidify Beam Suntory’s position as two retail exclusives from Ardmore, called exclusives are introduced. Launching the leading authority and innovator of the Ardmore Tradition and Ardmore Triple this autumn is Hibiki Japanese Harmony category, says the company. Wood. Designed to drive growth and attract Master’s Select, a blend that combines Jim Beam is expanding its range in consumers into the peated malts category, over 10 different malts and is aged in five global travel retail and domestic markets both exclusives have been launched with different types of cask, and packaged in a with the launch of a new premium contemporary new packaging, 24-faceted bottle and Japanese paper label. expression in summer 2016. Jim Beam Bowmore Mizunara Cask Finish, Further exclusive expressions will Double Oak has a richer flavor profile, which launched in selected domestic follow in 2016. thanks to a second maturation in white oak markets and travel retail last month, will casks. also be available to taste in Cannes. Made Cognac Beam Suntory will also showcase Jim from selected liquid matured in sherry and Beam Suntory will also present a Beam Kentucky Dram, its newly launched Bourbon barrels, it is finished for three new direction for Courvoisier, which travel retail exclusive, which is a premium years in new Japanese mizunara oak casks. includes exclusive new packaging bourbon infused with highland Scotch In addition, a new global communications across the range as well as a new global whisky. Initially launched in summer 2015 campaign for Bowmore is set to launch in marketing campaign, Toast of Paris Since in Sydney and Frankfurt to a positive 2016. 1889. Inspired by its rich history and response, global distribution is rolling out Beam Suntory is launching Laphroaig Parisian heritage, Toast of Paris reflects now and similarly inspired innovations will 16YO, a limited-edition created to Courvoisier’s roots in the French capital, follow next year. celebrate the 200th anniversary of the which date back to the Paris Golden Age These new products will be displayed distillery, established in 1815. This new and the Grand Opening of the Eiffel Tower alongside the full range of bourbons, product will be exclusively available in the in 1889. including the Jim Beam range, Maker’s travel retail channel from September with Courvoisier’s new, exclusive travel Mark and Knob Creek. an ABV of 48.4% and a RRP of €45 for a retail range, The Artisan Edition, is 350ml bottle. set to launch next spring. The launch Malts Auchentoshan has a new global will highlight the quality and wood Within malts, Beam Suntory has campaign, Triple A Spirit, inspired by aging process involved in crafting identified peated whiskies as the fastest its triple distillation which will launch in Courvoisier. growing category and is extending its travel retail next year. Beam Suntory GTR will host visitors marketing initiative, Peated Malts of on the Arion Yacht in Harbour Village, led Distinction, which unites its collection of Japanese by Managing Director, David Wilson and peated malt whiskies. Beam Suntory’s Japanese whisky EMEA Director, Paul Hunnisett.

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K Please drink responsibly.

LIMONCELLO ORIGINALE

Visit us at Green Village M67 or email [email protected] 101 October/November 2015 TFWA/FDFA Issue INSIDER

Waldemar Behn brings new flavors for DANZKA Vodka and Dooley ́s The Original Toffee Cream liqueur to Cannes

Waldemar Behn is featuring H52, Green Village at the TFWA World “We have been very focused on DANZKA Vodka and Dooley’s the Exhibition in Cannes. developing new sales support tools for Original Toffee Cream liqueur on its stand DANZKA Vodka Apple, the 40% the trade; on packs, twin packs, displays,” apple vodka, launched one year ago at the says Torben Vedel Andersen, Global Sales TFWA World Exhibition in Cannes, has Director. “It is of big importance to stand had a strong reception wherever it has out in the store and look attractive to the been released, with particular success in consumer – this work will continue. We are South America, Europe, and Asia, says the the best traveling vodka in the world and company. wish to enhance this at all times.” DANZKA Vodka added a number of Dooley’s Toffee Cream liqueur key new listings in important international has added a new flavor-Dooley’s White markets including with Gebr. Heinemann Chocolate with Wild Berries, a blend at Sydney Airport, at Delhi and Mumbai of Dutch Cream, White Chocolate and International Airports, as well as in Asia, Premium Vodka. Europe and Latin America. Waldemar Behn is also featuring At the POS, Waldemar Behn has Blavod-Pure Black Premium Vodka, which introduced a new DANZKA Vodka Twin gets its unique color and flavor from black Pack featuring two one-liter bottles, catechu, which is extracted from the bark which can be customized by retailers upon of the Acacia tree in South East Asia. request. New shelf-talkers may also be Waldemar Behn has also updated and available, as well as customized displays. expanded its website at www.behn.de.

William Grant’s partnerships drive performance Despite currency fluctuations and a “It seems there has been no shortage taking on-board, and we’re in a good position strong U.S. dollar, William Grant and Sons of challenges in 2015. Certainly currency for Q4 and ahead to 2016.” is having a successful year in Americas exchange and the strong U.S. dollar have been Depending on the specific market travel retail, says Steve Corrigan, WGS issues that we’ve had to deal with. Within within the region, different products are Regional Director- North America. the portfolio, we are still in the early stages driving the company’s performance, with “We have very strong partnerships of ensuring the success of the Glenfiddich Gibson’s Canadian Whiskey, Sailor Jerry, with our customers in the region and Cask Collection. We launched this range in and Grant’s Scotch Whisky each doing have worked with them to build programs the market over the course of 2014, so we are well, and The Balvenie and Hendrick’s Gin to help drive footfall and spend in their just now cycling on a full year’s results. There performing particularly well across all the stores,” he says. have been some key learnings that we are markets in the region, says Corrigan.

WGS ran a number of succesful promotions throughout the region in 2015. (l) In July Nuance featured a Whisky Tasting Bar & Window Display featuring Cask Collection Range and Glenfiddich Family at Toronto Pearson Airport. In August at Las Vegas, Nuance held a Hendrick’s Gin promotion with consumers sampling of Hendrick’s & Tonic with Cucumber. This summer International Shoppes featured Hendrick’s Gin in the store entrance, cash wraps, and queue branding in Boston.

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The Power of a Smile continues for Mars International Travel Retail They sell as good Mars International Travel Retail (Bay for 2016 will be key in driving sales. entertain: “That’s why we believe that so Village, Stand B9) is expanding its “Power Craig Sargeant, General Manager, much can be achieved with the Power of a of a Smile” strategy to demonstrate how to Mars International Travel Retail, sees Smile. We can convert lighter buyers and capture areas of growth in travel retail. strong potential with the strategy, since aim to double the size of the confectionery After successfully launching the confectionery continues to outperform category by 2020. We truly believe in the concept in Cannes last year, MITR this year other categories in the travel retail channel. Power of a Smile because we know that a as they taste shares the “Laws of Growth,” showcasing “Given that penetration rates overall smiling traveler is a spending traveler!” how the “Power of a Smile” can drive are still extremely low in some airports; Boulter says that great execution sales by converting lighter buyers through with 50% or more of passengers not even of ‘blockbuster’ propositions in the core focus on core SKUs, using excellent instore entering the duty free/travel retail shops, range is key for success. “Consumers are executions. there is clearly still a massive opportunity looking for the brands they know and love. MITR will also re-launch a key brand to unlock additional sales across all As most of our buyers only shop once to step change its offering in the solid categories, in particular confectionery.” or twice a year, we do not need a huge chocolate and gifting format. MITR says MITR Category Director Matt Boulter range, just big brands in the right formats that its new product development, updated is also optimistic about impulse sales to deliver against consumer needs. The displays, and activations and promotions based on the capacity of confectionery to quality of execution is critical as products need to be clearly visible and easy to shop. If consumers cannot find what they want © quickly and easily then the opportunity is lost.” MITR is also focusing on gum and sugar confections, a category that delivers less than 10% of total sales in travel retail. © Boulter says that if travel retail gum and sugar confection sales were raised to the same percentage as in the domestic market, the value of the total confectionery category would increase by more than $1bn. “In 2016, we will be launching a number of initiatives to achieve this including new products, upgraded displays, planograms and innovative activations,” he says.

In a move that underscores the travel retail channel. Steve Bentz, Director team. We are already implementing © company’s commitment to experiential of Hershey World Travel Retail, will now experiential ‘store within a store’ concepts retail solutions and shopper engagement, report to Suzanne. in the travel retail channel and this move The Hershey Company has moved its “While our Hershey retail stores around will allow us to accelerate and expand that World Travel Retail team into The Hershey the world are popular travel destinations, innovative work,” added Bentz. Experience organization. airports are the pass through for many of In addition to expanding Hershey’s Under the leadership of Suzanne our visitors. We want to make sure we’re travel retail’s available portfolio and Jones, vice president of The Hershey engaging shoppers with our company and accelerating its experiential design work, Mars ITR is a leading player in the confectionery category. We combine insights, vision and global strength Experience, the World Travel Retail brands at all points during their journey and the team will continue to focus on bringing with powerful brands to create fantastic in-store opportunities. Take M&M’s for instance, the great promotions, shop-in-shop concepts and fun merchandising makes the brand a very powerful sales driver. best-in-class category and channel insights team will leverage the unique portfolio, at their destination,” said Suzanne Jones, Contact your local account manager and see what M&M’s can do for you! experiential retail concepts and innovative Vice President of The Hershey Experience, to its travel retail partners by building technology applications currently in The Hershey Company. strong brand connections and taking Let’s face it, if consumers can’t resist M, how can you? Hershey’s Chocolate World attractions “We are excited to have increased shopper engagement solutions to travel globally to bring new excitement to the connectivity with The Hershey Experience retail worldwide. Visit us at Bay Village - Bay 9 ® M&M’s and the M&M’s Characters are registered trademarks. © Mars 2015. registered Characters are and the M&M’s ® M&M’s

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639.1879f MITR - Adv TMI Cannes 216x279,4.indd 1 11-09-15 10:48 They sell as good as they taste

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

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

Visit us at Bay Village - Bay 9 ® M&M’s and the M&M’s Characters are registered trademarks. © Mars 2015. registered Characters are and the M&M’s ® M&M’s

105 October/November 2015 TFWA/FDFA Issue

639.1879f MITR - Adv TMI Cannes 216x279,4.indd 1 11-09-15 10:48 INSIDER

Ferrero Travel Market launches new additions to Tic Tac, Ferrero Rocher, and Kinder

Responding to the growth potential cover’s back and three boxes of mints. 48 Ferrero Rocher pralines, packaged in demonstrated by the sugar confectionery Francois Godin, General Manger, a variety of souvenir gift boxes decorated category in travel retail, Ferrero Travel Ferrero Travel Market, is excited about the with icons of popular tourist destinations. Market is launching a new Tic Tac brand progress of the Tic Tac line launched two The line will launch with the Ferrero platform. years ago and the future potential of the Rocher Souvenir T48 (600g) for France, Using highly visible point of sale brand. “Tic Tac is now accepted not only with Germany, Italy, UK, USA, Dubai, material, brand merchandizing and new TR as a mouth freshener but as an impulse China, Hong Kong, and Singapore exclusive products, Tic Tac is asking its gift purchase. With our latest additions to following in February 2016. Additional customers to “Enjoy the little things.” New the collection we intend to shake up the products will focus on gifting. The Ferrero products include the Tic Tac Key Chain sugar category a little and provide some Rocher Cutie (75g) and the Raffaello Cutie and Tic Tac Key Fob. The Destination interesting alternatives as a change from (70g) are designed to fit in hand luggage Collector’s Set includes four souvenir T100 chocolate confectionery.” and feature a bow on top for gift and Tic Tac packs decorated with iconic world In the chocolate category, the new shelf-appeal. The Ferrero Golden Gallery locations. The TR exclusive iPhone Cover Ferrero Rocher Souvenir Collection is a (216g or 327g) is a variety gifting option gift pack includes a maze game on the travel retail exclusive range containing containing six different flavors. “Well established as a symbol of luxury, the Ferrero praline collection is entering a new age of sophistication and exclusivity,” comments Godin. “Travelers love to find a cherished brand with a new twist which distinguishes their purchase from anything that can be found on the high street. The Ferrero Rocher Souvenir Collection is a delightful interpretation of a much loved classic and the charming Cuties of Ferrero Rocher and Raffaello pralines are an inspired addition to our core selection.”

Nestle International Travel Retail “takes a break” with KITKAT in Singapore In the spirit of Nestle International Shoppers were also able to receive an be the world’s first airport to anchor this Travel Retail’s global KITKAT “break” exclusive KITKAT towel GWP for every engaging activation here in Changi. This is campaign, which celebrates different types two KITKAT share-bags purchased. the first time we transport beach elements of breaks enjoyed all over the world, the The “break” campaign lends itself to into our airport and we hope to create a company brought to life an interactive fun and whimsical travel retail activations, memorable experience for our passengers.” beach break for travelers to Singapore as seen in Changi under a successful Changi Airport from August 19 through Trinity relationship. September 30. Ms Ivy Wong, Senior Featuring loungers, sand and coconut Vice President, Airside trees, and a café/bar serving up KITKAT Concessions, Changi garnished items, the airport oasis welcomed Airport Group, says, “The travelers to relax before their flights and KITKAT beach break experience the KITKAT brand. Alan concept is creative and Brennan, NITR global head of sales, refreshing, augmenting comments, “We work tirelessly to create Changi Airport’s engaging activations based on our shopper philosophy of creating an research and insights. Each has the same unexpected experience purpose: to increase passenger penetration for passengers. We are into the retail space and convert travelers very happy to partner into shoppers and shoppers into buyers.” with NITR and FNA and

TFWA/FDFA Issue October/November 2015 106 INSIGHT #4

of shoppers would buy cash till offers 25% in a duty free store. CONFECTIONERY • IS THE MOST SOUGHT AFTER CATEGORY AT CASH TILL. • HELPS TO DRIVE INCREMENTAL REVENUE.

Source: Global Duty Free Visitor Study, 2011 (11,000 interviews, 30 airports) Photo: Birmingham Airport

107 October/November 2015 TFWA/FDFA Issue INSIDER PVM focuses on young adult snacking and gifting BUILDING THE SCHOOL with new products THAT IS BUILDING NEW LIVES IN HAITI Perfetti Van Melle is using MindSet available in Sweet Mint, Strawberry, and research to forge a new strategy that Euca Menthol, is designed to increase the will target snacking/sharing and gifting average basket size on check out. Each opportunities for children and young adults. tin contains 120 mints for snacking and PVM Manager Global Travel Retail sharing. Susan De Vree sees the current limited PVM (exhibiting in Mediterranean options available to young adults as a great Village P17) believes these new products opportunity, “The research has shown us available in red and blue, is a refillable will create new opportunities. that we have underestimated the percentage dispenser children can decorate with alien “The biggest challenge is to increase of confectionery that is purchased for stickers, that contains eight mini Mentos the share of space for confectionery own-use within travel retail – 40% of the rolls. The book-shaped Mentos Secret within the duty free shop. Getting the whole category and as high as 55% within Book contains eight rolls of Mentos fruit right assortment is vital; we have to meet the sugar sector. In addition, we have also and is a destination gift. the needs of the traveling consumer,” noticed some ‘white spots’ within the sugar For the cash till, Mentos Now Mints, comments De Vree. segment, with a definite lack of products aimed at young adults.” Based on these factors along with the Butler presents new cocktail inspired importance of products for the cash till point, PVM is offering snacking/sharing chocolate collection and gifting options designed to capitalize Butlers Chocolates will be mixing Irish Whiskey, and is available in a 190g on emotional possibilities of confectionery it up at the TFWA exhibition with a new presentation box. for children and young adults in the Chupa collection of cocktail inspired chocolates. To see the new additions to the Butlers Chups and Mentos brands. Lycée Jean-Baptiste Pointe du Sable, Founded 2011, Saint-Marc, Haiti “The Cocktail Menu” includes 8 different line, visit their booth at Green Village L56. The Chupa Chups Sweet Magnet chocolates in flavors like Gin Martini, features a travel related magnet with an Passionfruit Margarita, and Raspberry emotional message such as “Love You”, Cosmopolitan. “Miss You”, “Want You”, and “Thank You” The Irish chocolatier also launched along with eight mini fruity lollipops, and the Dessert Menu earlier this summer, is designed for young adults. For children, and the Festive Menu in the autumn. the Chupa Chups Fun Pen gift item comes These fun and inspired collections join with four strawberry lollipops, two fun Butler’s range of chocolates inspired by pens, and two edible wafers and uses edible famous Irish drinks, a popular mainstay ink to create consumable masterpieces. in global travel retail. This year’s The Chupa Chups Mini Sour pouch bag, collection is a premium assortment of with 40 mixed sour fruit mini lollipops, is truffles in flavors like Irish Cream and designed for snacking and sharing. Mentos Mini UFO Dispenser, OUR SCHOOL WILL EMPOWER A COMMUNITY TO BREAK THE CYCLE OF POVERTY… Godiva presents second prestige collection ONE CHILD AT A TIME for Coeur Iconique Learn more or donate now: www.handinhandforhaiti.com/donations After the success of the initial limited The Coeur Iconique collection is a edition Coeur Iconique launch in 2015, perfect gifting option in travel retail. Leen Godiva will be highlighting the new Baeten, Senior Marketing & Business Coeur Iconique Travel Exclusive Edition Development Global Travel Retail, 2016 at Yellow Village F33 at the TFWA comments, “Coeur Iconique makes a Exhibition. delightful and thoughtful gift for travelers This second prestige collection to take home to loved ones. Exquisite features two exclusive vintage-chic designs chocolates are a beautiful gift, appreciated inspired by 2016 color trend predictions. the world over.” Building the school that The keepsake boxes feature die-cut effects This travel exclusive collection will is building new lives and soft touch matte packaging. Each box launch in airports worldwide on January 4, contains six Godiva praline or ganache heart 2016. pieces in milk, dark, and white chocolate. FOLLOW US FOR EXCITING UPDATES AND PHOTOS Facebook/handinhandforhaiti Twitter @handinhandhaiti Instagram/handinhandforhaiti TFWA/FDFA Issue October/November 2015 108 IAADFS/MHA Issue March 2015 174 18 Travel Markets Insider DUTY FREE CARIBBEANHand REVIEW in Hand for Haiti is a 501(c)(3) non-profit organization based in the United States.

2014_HIHH FP AD.indd 1 2/20/14 6:10 PM BUILDING THE SCHOOL THAT IS BUILDING NEW LIVES IN HAITI

Lycée Jean-Baptiste Pointe du Sable, Founded 2011, Saint-Marc, Haiti

OUR SCHOOL WILL EMPOWER A COMMUNITY TO BREAK THE CYCLE OF POVERTY… ONE CHILD AT A TIME Learn more or donate now: www.handinhandforhaiti.com/donations

Building the school that is building new lives

FOLLOW US FOR EXCITING UPDATES AND PHOTOS Facebook/handinhandforhaiti Twitter @handinhandhaiti Instagram/handinhandforhaiti 109 October/November 2015 TFWA/FDFA Issue IAADFS/MHA Issue March 2015 174 18 Travel Markets Insider DUTY FREE CARIBBEANHand REVIEW in Hand for Haiti is a 501(c)(3) non-profit organization based in the United States.

2014_HIHH FP AD.indd 1 2/20/14 6:10 PM INSIDER

Travel Blue teams up with Braun, Oral-B and Duracell

Travel Blue has partnered with Braun Managing Director of Travel Blue. international airports around the world.” in travel retail to offer a selective range of “We are delighted about this “The #1 travel accessory company Braun, Oral-B and Duracell products. cooperation with Travel Blue which has joined forces in Travel Retail with The three global brands will form will bring additional placements at key Braun, Oral-B and Duracell, the 3 famous part of the Travel Blue offer and will be international brands,” says Klaus Mellin, featured on their display stands, which are owner of Tax Free Trade, P&G’s exclusive already present in hundreds of airports in agents for Braun, Oral-B and Duracell in over 100 countries worldwide. Travel Retail. The partnership will generate The very concise range will feature additional sales to the retailer on existing key retail price points targeted to generate space, creating incremental business impulse purchases of travel essentials. without finding any extra space, says the These include Oral-B battery powered company. toothbrushes and replacement toothbrush “We are delighted about this new heads, Duracell most powerful batteries collaboration to offer these 3 global and the Braun Mobile Shaver and other key brands. The carefully selected range we are items from Braun. offering is a natural extension to our well For more details visit Travel established distribution, especially in the Blue (Red Village, M24) and Braun airport shops working with the top global (Mediterranean Village, P15) at the Tax operators,” says Avi Levin, owner and Free World Exhibition. FlyInStyle couples technology and content marketing to improve passenger experience by Amanda Anthony, founder and CEO FlyInStyle.

Beacon technology is positioned Innovations to expand its commercial and the population today. 56% report being first to be the most powerful change in the technology footprint across the Americas, to try new technologies and 46% identify retail experience in decades. Reportedly Europe and the Middle East. themselves as content creators. They are more than 500 airports worldwide will be FlyInStyle has also partnered with willing to trade their data for a better powered with beacons within a year. Reveal Mobile, who can detect Bluetooth consumer experience. They hate to be FlyInStyle has been piloting beacon beacons anywhere in the world, as their talked at and prefer to build relationships technology through the FlyInStyle technology sits inside hundreds of apps with the brands they support. 80% want App with Miami International Airport in both the App Store and Google Play. brands that entertain them. An innovative (MIA) and SITA, the IT provider for the As mobile users “bump” into beacons at content marketing strategy is critical to airline industry, for the past year to serve airports, the platform recognizes travelers capitalize on these technologies and capture passengers with contextual messaging and their preferences, building a target the heart of connected travelers. during their physical journey through the audience of known travelers based upon The FlyInStyle App is available for airport. This messaging can be text-only, these beacon bumps. download on the App Store with more include images and even video, allowing Geofencing allows FlyInStyle to than 130 global airports with active more flexibility than traditional push deliver targeted ads to passengers as they tips, promotions and marketing content notifications. enter the airport to download the FlyInStyle for passengers to improve their airport Airports like MIA and Dallas-Fort Mobile Application using Reveal Mobile experience. The company has more Worth International Airport (DFW) technology. In addition to serving real- than 10,000 airports in its system and is use beacon technology to improve time notifications, FlyInStyle is building a equipped to publish to any airport in the wayfinding, monitor traffic patterns and powerful retargeting audience. world in minutes. FlyInStyle is in private improve security wait time as they look to As the traveling population shifts and beta testing with its Android App. improve passenger experience. The future the millennial generation fills terminals, the For more information, visit our could be virtual boarding passes as the game will change. People are consuming websites: flyinstyleapp.com and flyinstyle. passenger approaches the gate, reminders more content than ever, spending nearly co. If you are interested in partnering with about parking and pop-up coupons for 6 hours per day on digital media. 75% of FlyInStyle, contact Amanda@flyinstyleapp. nearby businesses. FlyInStyle has formed Millenials want to travel internationally. com. partnerships with companies such as They are 2.5X as likely to be classified as Bluecon Solutions, Multitek and Sabre ‘early tech adopters’ and represent 25% of

TFWA/FDFA Issue October/November 2015 110 Connected travelers use mobile to improve the airport experience.

Is your business on board with a mobile strategy? 75% of global airport passengers carry a smartphone. How will you connect with them? Download Now: There are many options with new technologies… but piecing together a holistic marketing plan is complex. We're here to help.

111 October/November 2015 TFWA/FDFA Issue Contact [email protected] INSIDER

Advertiser’s Index

ASUTIL 53 Giorgio Armani Si IFC-3 Mondelez International 107 Beam Suntory World Whisky Portfolio 93 Glenfiddich Cask Collection 8-9 My Burberry 63 Botran Rum 97 Grey Goose VX 21 Patrón Tequila Cover Buckley London 79 Hand in Hand for Haiti 109 Penguin 67 Camel - JTI 23 IAADFS 2016 19 Remy Cointreau TRA 10 Crislu 73 It’s About Time Productions 114 Remy Martin Cellar Master’s Selection 11 DANZKA Vodka 17 IWSR 85 Rituals 69 Dooley’s 103 Jack Daniel’s Gold 15 Savvy Traveler Insert Dufry Americas 43 Jack Daniel’s Sinatra Select 89 Shopping China 55 Duty Free Americas 31 Knob Creek 25 Strumento Marino 49 Essence Corp. 61 Lancome Advanced Genifique 4-5 Travel Markets Insider 113 Estee Lauder Breast Cancer Awareness 57 Lancome La vie est belle BC Versace Eros Pour Femme 13 FDFA 2015 35 Licor 43 95 Villa Massa 101 flyinstyle 111 London Supply 45 Woodford Reserve 87 Furla IBC Mars International Travel Retail 105 Worldclassbrands 81 Giorgio Armani Profumo 61 Monalisa 51 YSL Rouge Pur Couture 6-7

“Mr. DANZKA” reminisces on a career spanning 90 countries over 40+ years

Waldemar Behn Global Sales Director League line up of super brands in all exist. Trends spread with the speed of light Torben Vedel Andersen, or Mr. DANZKA categories since I joined Carlsberg at these days and communication and gadgets as he is known for his many years working the age of 17 in Copenhagen. The sales are a big help in our everyday use. with the Danish vodka, will celebrate his and marketing of these phenomenal “At Carlsberg we did not have credit 60th birthday on October 26, the first day brands have brought me to 90 countries cards when we traveled in the 70s and after the Cannes show. and I have met an incredible number of 80s – we traveled with cash – 10 days in “I appreciate that TFWA allows me to fantastic people on my travels. Network is Europe with 2 kilos of Guilders, Belgian celebrate my birthday at home. Since my everything and for sure friendships have Francs, French Francs, Pesetas, Liras, first appearance in 1980 in Monaco, almost helped me a long way through my life and D-mark, Schilling and Swiss Francs. We all my birthdays have been celebrated at have been essential at times where most had no cell phones, no PC’s, no telefaxes, the Exhibition,” Andersen tells TMI, as he needed,” observes Torben. we had – the lucky few – electric IBM looks back on his global career. Andersen has seen the industry grow typewriters with ‘golf balls.’ Manual “Global brands in all alcoholic and develop since his first TFWA show typewriters were still normal. In the sectors have been essential in my business more than three decades ago. export department we used telex for life; Carlsberg, Ballantine’s, Ch. Latour, “It is an ever changing world out mainly shipping issues, but all commercial Lanson, Absolut, DANZKA - a Premier there. In my young days, companies like correspondence were airmail letters. As IDV, DCL, Seagram’s, and Hiram Walker a young trainee I wrote a letter to Africa were the key suppliers to companies like during one of my first days of my 4 months Alders, SAS Trading, DFI, Brasif, Aldeasa. stay in Tuborg’s export dept. The reply Now it is Pernod-Ricard, Diageo, LVMH came 4 months later. ” etc. supplying Dufry, Heinemann, DFA and Torben’s key companion has always DFS, among others. been the love of his life, Helle: “We met at “When I joined Carlsberg in 1973, the age of 16, and we have now decided to Bailey’s, Absolut, Grey Goose, DANZKA, make it permanent,” he laughs. Hendricks, Bombay Sapphire and many “Our children have been our joy and more of today’s leading brands did not happiness for many years. They both have lovely fiancées and great jobs so they are our source of surplus and happiness.” Mr. DANZKA with his beloved wife Helle in Denmark in 2014

TFWA/FDFA Issue October/November 2015 112 INSIDER

PEOPLE NEWS Christoph Neusser for his leadership during Manager Consumer Division L’Oréal the last several months.” Travel Retail Americas. Godiva Chocolatier has appointed Matthew Hodges as General Manager Jonatan Gramage, former Godiva Mars International Travel Retail has Global Travel Retail. Assistant Trade Marketing Manager, expanded its global travel retail team Hodges has a broad background Americas and Caribbean Global Travel with the appointment of Matt Boulter as in marketing, strategy, commercial and Retail team in Fort Lauderdale, has been Category Director, responsible for both general management and is well-known promoted to Associate Marketing Manager the marketing and category teams. Boulter in the travel retail channel, where he most in Godiva’s North America Marketing has strong cross-functional experience recently worked for Rémy Cointreau Activation and Product Development team in manufacturing, commercial, sales and as Global Marketing and Business based in New York City. The new position marketing. Boulter joined Mars nine Development Director Global Travel is effective September 15th, 2015. years ago and most recently was Snickers Retail, based in Singapore. UK Brand Director. He reports to MITR In his new role, commencing on Perfetti Van Melle GTR has appointed General Manager Craig Sargeant. September 28, Hodges and his team will Michiel Havermans as its new Director drive the vision and strategy of the Godiva of Export North, West, Central, Eastern Arabella (Belle) Smith joins MITR Global Travel Retail business in line Europe & Global Travel Retail. in the newly created role of Corporate with the Premium confectionery brand’s Havermans succeeds Marc Van Affairs Manager for the Mars Global ambitious growth targets. Campenhoudt, who has been named Retail Business. She will be responsible Hodges succeeds Christoph Neusser, Commercial Director PVM Benelux & for developing corporate affairs strategies who led the division for the past 2 years. France. and providing communications support for “I am delighted to have Matthew Havermans has been with PVM since MITR and Mars Retail Group, including join Godiva to head our important Global 2001 and has held senior positions in the M&M’S World stores and My M&M’s. Travel Retail business. Matthew brings UK, Philippines and Vietnam. She will also provide the strategic significant relevant commercial and communications counsel, insights and tools strategic experience that will help us Sébastien Lévi has joined Israeli cosmetic to achieve key strategic goals. in working closely with our customers company Moroccanoil as Director of Smith joined the company in 2011 as to grow together,” says Godiva CEO Retail and Travel Retail Sales Europe/ Marketing & PR Manager. Mohamed Elsarky. “I would like to take Asia. Levi spent more than 12 years with this opportunity to offer sincere thanks to L’Oréal Group, most recently as General

Special Issue TFWA World Exhibition/ FDFA October/November 2015 INSIDE INSIDER News The most comprehensive coverage on North America U.S. Airports: MSP, LGA, DFASS at DFW, MIA, DFA at IAD

Can travel retail survive today’s aggressive Canada: FDFA turns 30 - the duty free and travel A look back and ahead with FDFA’s market competition? Peter Brain and Laurie Karson The travel retail industry is retail markets in the Americas. facing some daunting challenges this year, from currency issues, mergers and consolidation, to Expansions and renovations at increasing competition coming Importations Guay Ltee, from outside the channel. Blue Water Duty Free South America is suffering from dire political and economic Caribbean Puerto Rico fiscal crisis, But you already know this. woes, which are impacting travel Cuba opens retail especially hard in Brazil and on the Uruguayan border. South America “It is a tough market, and Economic analysis unfortunately we think this may be the new normal for travel retail in South America. So we will have to get used to doing business You’re on page 113. under these conditions,” one Innovative animations like this race car video game experience for RL major supplier told TMI. Fragrances Polo Red at Ezeiza International Airport in September use One of the most pervasive retailtainment and digital tools to recruit customers and build brands. Page 61 seen within the pages of this issue complaints voiced by retailers of TMI, U.S. airports continue The Estée Lauder 2015 Breast from Canada to the Caribbean internet is having on their business: to expand and modernize their Cancer Awareness campaign is the threat posed by internet “Customers come in to try facilities and commercial offer to is a call to action sales, which are inundating the the new fragrances, but then tell satisfy the retail demand. marketplace with aggressively us they will buy it online,” was Ever resilient, the travel Supplier Features priced goods and to-your-door the refrain voiced over and over. Giorgio Armani Cosmetics, retail industry is adapting to RL Polo Red, Parlux, Kering takes aim service. The online price is attractive and Peter Brain, president accommodate the changing at Americas, Safilo, worldclassbrands travelers do not wish to carry marketplace, providing value and of Canada’s Frontier Duty any extra purchases these days, entertainment at the point of sale Free Association, addressed especially as more airlines are and using many new digital tools the “aggressive price-based charging luggage fees, they say. to communicate with consumers competition in the U.S.” most The United States and the at all points of their travel eloquently: Canadian airports are brighter “…As niche retailers with a experience. spots in the gloom, however. The travelers are there – air limited product breadth relative Anna.aero reports that the traffic and visitation numbers to mass-market discounters and U.S.-Europe market is undergoing are up throughout the Americas. internet retailers, we have to its longest period of sustained The challenge will be to find new ensure our duty free offering capacity growth in over a ways to appeal to these potential Sinatra Century continues to provide trusted and decade, with the trans-Atlantic shoppers while they are in the compelling value. Otherwise, route growing by 6%. Next year channel. Brown-Forman celebrates it will become more and more promises further growth in U.S.- Read all about it, Inside Frank Sinatra’s 100th birthday easy for consumers to transfer Europe capacity with eight carriers Insider. purchases away from duty free to Plus Products-People-Places launching new U.S.-Europe The Insider View other sellers,” he observes. services. The number of Chinese During the Tairo International Lois Pasternak, travelers to the U.S. and Canada Editor/Publisher beauty training that took place at also keeps growing, and these the end of September, nearly every visitors are here to shop. As will be Caribbean retailer TMI spoke with brought up the impact that the

113 October/November 2015 TFWA/FDFA Issue INSIDER

PEOPLE NEWS Danzka Vodka globally. Before this, he was also a director at Rob Cullins, CEO comments: “Lars World of Patria International. Jerome Blanchard has left his position as has done an outstanding job in leading the Director of Buying and Merchandising for Stolichnaya brand platform over the past Chase International has appointed Accessories and Luxury Products at Duty few years. I’m very pleased to recognize Veronica P. Huber as Trade Marketing Free Americas to become Sales Director for his efforts and contributions to the Group, Manager effective October 1, 2015. Latin America and the Caribbean at Gucci by having him lead our International Huber has extensive Marketing and Watch and Jewelry. Markets’ brand strategies and marketing Sales Management experience in the Blanchard was with DFA for the past resources.” Americas Travel Retail industry, having 8 years, following five years at Remy run her own import company Spondilus Cointreau. Travel retail veteran Kevin Baker has Inc., and previously has held various been named Global Travel Retail Director regional sales and marketing positions with Paolo Diamante has joined Kering of Marie Brizard Wines & Spirits. The Longines, Cartier, and Diageo. Eyewear Group as Area Manager, Travel former Belvedere Group, which went Retail Americas. Diamante was previously through a complete restructuring of its Marco Lares has been named Director with Safilo and L’Oréal. business during 2014, is embarking on of Sales for the French-Canadian Aspex a new ‘BIG 2018’ strategy (Back In the Group, responsible for launching the Stoli Group has appointed Lars Vestbirk Game) this year. BMW Sunglass collection (among others as Marketing Director - International, Baker’s role is to develop and manufactured by Aspex), to the Travel effective immediately. Lars has been establish a Travel Retail business for Retail/Duty Free industry. promoted from his current capacity of MBWS by creating and implementing a The BMW Sunglass custom-made Global Brand Director, and will continue channel strategy aligned to the strategy. He designs are assembled from the highest to lead the development of Stolichnaya will also manage the Middle East region. quality materials such as titanium, stainless Premium Vodka and elit by Stolichnaya Best known for his 20 year experience of steel, acetate, TR90 and NXT. Designed around the world. sales and marketing with Brown-Forman with style and function, the collection Vestbirk has more than 9 years and Diageo, he most recently was Global features: polarized sun lenses, mirror sun experience in international spirits brand Head of Liquor and Head of Category lenses and exclusive integrated spring management and previously worked with Europe for Liquor, Tobacco & Technology hinge. Belvedere Group primarily handling for The Nuance Group based in Zürich.

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