AMERICAS DUTY FREE

ASUTIL 2011

Neutral beginsits journey p. 18 Why

they buy p. 38Latin Americastays strong p. 28 E-cigarettes: the

new alternative p. 92

JUNE/JULY 2011 • VOL 21, NO 2 Inglés y español

www.dutyfreemagazine.ca THE AMERICAS DUTY FREE & TRAVEL RETAILING

ASUTIL was born thanks to thevision and drive of its founders,including Samuel Kauffmann ofDufry Brasil, Victor Hugo Bonnetof London Supply and Adolfo

Pertierra Menéndez of Interbaires. They iden-tified a need for an organization that wouldallow duty free executives in the region to cometogether to discuss pertinent topics of interestand development initiatives for the benefit ofthe travel retail channel in the region as a whole.ASUTIL is a novel entity in travel retail

because of the fact that all of the major playersin Latin American duty free come together asequals for the benefit of the industry in theregion. I always make a point of saying thatASUTIL is not an organization made up ofbusinesses represented by people, but rather bypeople representing businesses. By its verynature, this important distinction allows businessto be conducted in a more fluid manner asexecutives meet face to face and begin to gaina better understanding of each other throughshared experiences. What does ASUTIL offer attendees? The

answer is simple: EVERYTHING. From freegifts, amazing social activities and all lunches

provided by ASUTIL to a discounted hotelrate that includes free Internet and breakfast,attendees are taken special care of at eachconference. It’s also worth mentioning thememorable gala dinners that take place everyyear, such as the evening sponsored by ZeinalHnos in Punta del Este in 1999 or the LondonSupply-sponsored gala dinner in 2005 inBuenos Aires.Put very simply, ASUTIL matters now more

than ever because the travel retail industrymust remain united like never before. Thereare multiple threats to travel retail and we mustbe prepared to face them knowing that ourniche industry should maintain the identityand mystique that makes entering a duty freestore in Latin America an experience unto itself. Over the course of the years since ASUTIL’s

inception, the founders’ original objectiveshave been consistently pursued as the organ-ization has grown in size and scope. This year’sconference, held at the JW Marriot in Cancun,Mexico, is perhaps the best example to dateof our continued efforts to fulfill the originalvision set out for ASUTIL. We invite you tocelebrate with us in Cancun this year as webreak a new attendance record!

Sincerely,

Francisco HerediaPresident, ASUTIL

ASUTIL was conceived in 1995 asa humble regional associationmade up of duty free membersfrom Mercosur. When I took overfrom Enrique Urioste as Secre-

tary-General of ASUTIL in 2001, it was a timeof great change for the entire world, and espe-cially for the people of the United States. Thatyear 80 people attended the conference. I’mproud to say that at this year’s conference inCancun, Mexico, we’ll be welcoming almost300 people. This represents a new record forthe organization.ASUTIL has always made a concerted effort

to secure thought provoking, internationallyrenowned speakers for the conference portionof the event, and this year is no exception.Furthermore, I have no doubt that the net-working time we offer suppliers and operatorswill again be put to good use this year. Finally,the social events add a very important elementto the annual gathering by allowing peoplein the industry to relate to one another on a

deeper level. These three pillars—the confer-ence, the networking opportunities and thesocial activities—combine to make an eventthat is truly unique in the industry. There is much to look forward to in the

coming years, both in relation to travel retailin Latin America and the ASUTIL conferencespecifically. More and more suppliers areasking about exhibiting products at ASUTILand many people would like to see the con-ference portion take place over a three- orfour-day period. These are just two examplesof the myriad possibilities for the future ofthe organization. While it’s impossible to saywhat changes will take place in years to come,rest assured that ASUTIL will evolve with theindustry as Latin America continues to emergeas a top player in the worldwide duty freechannel. For the moment, however, let us concentrate

on making this year’s conference the best itcan be. Welcome to Cancun and ASUTIL2011!

Sincerely,

José Luis Donagaray Secretary-General, ASUTIL

www.dutyfreemagazine.ca THE AMERICAS DUTY FREE & TRAVEL RETAILING

ASUTIL welcome note

Welcome to the 2011 ASUTIL Conference!

Letter From The Editor

4 THE AMERICAS DUTY FREE & TRAVEL RETAILING JUNE/JULY 2011

The Americas Duty Free & Travel Retailing(ISSN 0962-0699) is published four times a yearFebruary/March, June/July, October, November/ December) by Global Marketing Company Ltd., 26Pearl Street, Mississauga, Ontario L5M 1X2 Canada.It is distributed throughout Central America, SouthAmerica, the United States, Canada, U.S. VirginIslands, U.S. Pacific islands and the islands in theCaribbean.

Subscriptions: $200 for one year. Art and photographswill not be returned unless accompanied by returnpostage. The views expressed in this magazine donot necessarily reflect the views and opinions ofthe publisher or editor. June/July 2011, Vol. 21, No.2. Printed in Canada. All rights reserved. Nothingmay be reprinted in whole or in part without writtenpermission from the publisher. © 2011 GlobalMarketing Company Ltd.

The Americas Duty Free & Travel Retailing26 Pearl Street

Mississauga, Ontario L5M 1X2 CanadaTel: 1 905 821 3344; Fax: 1 905 821 2777

www.dutyfreemagazine.ca

PUBLISHERAijaz Khan

[email protected]

EDITORIAL DEPARTMENT

EDITORHibah Noor

[email protected]

CONCESSIONS, LIQUOR & TOBACCO EDITORRyan White

[email protected]

ART DIRECTORPatrick Balanquit

[email protected]

CONTRIBUTORSAndrew Brooks

ADVERTISING SALES

ADVERTISING & MARKETING MANAGERKim Carrera

[email protected]

CIRCULATION & SUBSCRIPTION MANAGERDeepa J

[email protected]

2011 got off to a winning start witha successful Duty Free Show ofthe Americas (IAADFS) and thepositive energy has brought us tothe middle of the year to our next

big conference for the Americas region. The new time slot in June for the ASUTIL

conference has received great feedback andwhat’s more, a higher number of attendeessurpassing the number of visitors from lastyear. The move plus the popularity of theconference has proven fruitful for the organ-ization. Attendees can expect great networkingopportunities in an intimate setting withtons of social activities.When thinking of the up and up, a few

retailers come to mind. One specific Argen-tinean operator, London Supply, is doing bigthings. Most recently, the retailer has beenplanning a huge expansion of the company’sstore in Iguazú. As finishing touches are puton the plan, London Supply’s CommercialManager Francisco Heredia has noted thatthe large project will likely take two years tocomplete. Another retailer is Top Brands. The com-

pany currently operates 28 stores in thedomestic and duty free markets. Its operations

are located in Belize, Salvador, Panama, Hon-duras, Guatemala, Puerto Rico, Cuba andmost recently Santa Martha, Colombia. Itslatest project involves expanding from CentralAmerica into the South American countryof Chile. The company’s distribution arm will open

a wholesale showroom to help it introducea number of high-end brands to the dutyfree zone. Given its existing relationshipswith suppliers, Top Brands will distributeeverything from perfumes and accessoriesto confectionery.I’m sure you’ll agree that The Americas

Duty Free team has worked even harder tobring you a bigger and better ASUTIL issuethis year. Enjoy the read...I look forward to seeing you all again in

sunny Cancun, Mexico.

Thanks,

Hibah [email protected]

Nurturing growth


Canada, U.S. VirginI

�

Fomentar el crecimiento

Letter From The Editor


� �

El año 2011 se inició de la mejor manera con una exitosaExposición Duty Free de las Américas (Duty Free Showof the Americas, IAADFS). Pero la energía positiva continúaluego de transcurrir el primer semestre, con nuestrapróxima conferencia en la región de las Américas.

El cambio de fecha de la conferencia de ASUTIL para junio harecibido opiniones muy elogiosas, y, más aún, una cifra mayor deasistentes que superó la del año pasado. El cambio y la popularidadde la conferencia han sido fructíferos para la organización. Losasistentes pueden esperar excelentes oportunidades de contacto pro-fesional en un entorno íntimo, con numerosas actividades sociales.Cuando pensamos en trayectorias ascendentes, nos vienen a la

mente algunos minoristas de viajes. Una compañía argentina enespecífico, London Supply, está cosechando grandes logros. Recien-temente, se ha propuesto una enorme expansión de su tienda enIguazú. Y ahora que la planificación está en la etapa final, FranciscoHeredia, Gerente Comercial de London Supply, ha destacado que endos años el proyecto estará terminado.Otro minorista de viajes a citar es Top Brands. En la actualidad, la

compañía opera 28 tiendas en los mercados nacional y duty free. Susestablecimientos están ubicados en Belice, El Salvador, Panamá, Hon-

duras, Guatemala, Puerto Rico, Cuba, y, recientemente, en SantaMarta, Colombia. Su proyecto más reciente consiste en ampliarse deCentroamérica a la nación suramericana de Chile. La dependencia de distribución de la compañía inaugurará un

salón de exposiciones mayorista para contribuir a la introducción devarias marcas de lujo en la zona duty free. Dada su relación existentecon los suministradores, Top Brands distribuirá una amplia gama deproductos, desde perfumes y accesorios a confitería.Estoy segura de que ustedes estarán de acuerdo en que este año el

equipo de Americas Duty Free se ha esforzado aun más para propor-cionarles un número más extenso y mejor dedicado a ASUTIL. Quedisfruten su lectura...Espero verlos nuevamente en Cancún, México.Cordialmente,

Hibah [email protected]

IN BRIEF Essence Corp. hosts another successful beauty

advisor seminar � Ferragamo presents Attimo pourHomme � Sea & Sky Supply broaden portfolio �

Marcolin continues incrementing sales in travel retail� Katherine Patch-Sleipnes joins Gold Silk � Siñerizto open mega store in Uruguay in 2012 � TommyHilfiger courts vast potential with its entry into thetravel retail market

TOP STORY: NEUTRAL DUTY FREE

Beginning the journey Americas Duty Free speaks to Enrique Urioste

about the recent private equity fund buyout ofNeutral to get a sense of the journey that liesahead for the well known duty free executive

Un viaje que recién comienza Americas Duty Free habla con Enrique Urioste

acerca de la reciente adquisición de Neutral porfondos de capital privado para tener una nocióndel camino que tiene por delante el reconocidoejecutivo duty free

LATIN AMERICA REPORT

Staying strong From Northern Mexico to Tierra del Fuego, Latin

American duty free operators see increased salesbuoyed by the improving US economy and thepurchasing power of Brazilian travelers

Mantenerse firmes Desde el norte de México a la Tierra del Fuego,

los operadores duty free latinoamericanosexperimentan incrementos en las ventasimpulsados por las mejoras en la economíaestadounidense y el poder adquisitivo de losviajeros brasileños

J U N E / J U L Y 2 0 1 1 • V O L 2 1 , N O 2

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Contents

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Contents


MARKET RESEARCH

Why they buy New market research aims to give travel

retailers valuable insight into buying decisions and behaviors

OPERATOR NEWS: TOP BRANDS

“The opportunities to come” Top Brands takes its El Dorado store concept

to ZOFRI as its distribution arm gives suppliers new opportunities to crack the thriving Chilean duty free market

TRINITY REPORT

A house united In duty free, operators and suppliers always do

better when they work together

AIRPORT NEWS: ALDEASA AND ASUR

Biding time ASUR and Aldeasa continue to make Cancún a

world-class airport in preparation for the eventualreturn of tourists to one of Mexico’s most dynamiccities

OPERATOR NEWS: UETA AND DFA

Maintaining momentum After a remarkable 2010 and an even better start to

2011, Leon Falic explains how UETA and DFA willcontinue their upward trajectories in the second half

COMPANY NEWS: L’ORÉAL GROUP - PARBEL

A fairy-tale fragrance L’Oréal kicks off a fresh new advertising campaign

for Ralph Lauren’s Romance

COMPANY NEWS: COLORFUL LICENSESINTERNATIONAL BV

Cashing in on color With its brilliant, multi-colored Oilily lifestyle

brand, Colorful Licenses International makes itsvibrant mark in duty free

COMPANY NEWS: ESSENCE CORP., CLARINS GROUP

Two men, two stories The compelling presences and achievements of

Oscar Pastorius and Enrique Iglesias providethe fuel for new launches from Essence Corp.

BEAUTY BEAT: FRAGRANCES

Fresh fragrances A line-up of innovative fragrances

welcome the new season

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One single drop to re-vitalize and illuminate the skin with a stunning radiance.

Contents


BEAUTY BEAT: SKINCARE & COSMETICS

Beauty regime Creative cosmetics and revolutionary skincare:

traveling consumers will have plenty of options tochoose from this season

COMPANY NEWS: SISLEY PARIS

The green pioneers As one of the early developers of

phytocosmetology, Sisley continues to lead theway in the premium end of the market

COMPANY NEWS: LESPORTSAC

Feeling the joy LeSportsac’s collaboration with LA-based Joyrich

results in a fun, colorful collection of handbags forWinter 2011

CONFECTIONERY REPORT

The best gets better As confectionery’s leaders gather at ASUTIL,

signs are that a strong market is only gettingstronger

COMPANY NEWS: BROWN-FORMAN

The right brands, the righttime

Brown-Forman renews its focus on premiumbrands Woodford Reserve, Herradura, Chambordand Chambord Vodka in the Americas

RUM REPORT

Freedom to choose Americas Duty Free talks to five rum brands about

the huge variety that the category has to offerboth connoisseurs and novices alike

COMPANY NEWS: DIAGEO

A year of accomplishments Diageo celebrates the success of Johnnie Walker

Double Black one year after its introduction as atravel retail exclusive

CIGAR AND SPIRIT PAIRINGS

Two of a kind Americas Duty Free discusses the art of bringing

out the best of both worlds when pairing cigarsand spirits with three of the industry’s mostprogressive cigar companies

COMPANY NEWS: BAT

Tradition meets innovation BAT continues to reinvent its products in Americas

duty free while remaining true to its long traditionof offering consumers quality cigarette brands

COMPANY NEWS: JTI

On the up and up JTI sees sales increases in Q1 2011 and continues

to invest in travel retail with the addition of newsmoking lounges in Europe

COMPANY NEWS: HORIZON INTERNATIONALDUTY FREE

The perfect combination Horizon International Duty Free rounds out its

portfolio of premium brands and welcomes twoduty free veterans to the team to continuegenerating buzz in Q2

NEW & NOTABLE Svedka Vodka � The Island Trio � Silk-épil 7

Dual Epilator

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Miami-based luxury beauty distributor EssenceCorp. recently concluded a beauty advisor(BA) seminar on May 20th at Club Med Resortin Cancun, Mexico.

The five-day event was enjoyed by 30 BAsfrom Central America and Mexico. The sem-inar included a busy agenda with brand andproduct training, an excursion to Xcaret and

numerous social activities. Both Clarins Groupand Essence Beauty presented their noveltieswhile providing an unforgettable experienceto their BAs.

Essence Corp. hosts another successful beauty advisor seminar

In Brief Essence Corp.’s beautyadvisor seminar inCancun, Mexico

Ferragamo presents Attimo pour HommePrestigious Italian fashion house Salvatore Fer-ragamo unveils its new masculine fragranceAttimo pour Homme, which will be rolled out inOctober. Famous Italian actor Alessandro Gassman

is the face of Attimo pour Homme. The companyconsiders him someone who “perfectly embodiesthe elegant Italian style of Salvatore Ferragamoas well as the ideal of Mediterranean masculinebeauty. He is not only known for his career butalso for being the son of Vittorio Gassman, oneof the most outstanding representatives ofItalian cinema worldwide.”Attimo pour Homme is a fresh and woody

oriental fragrance that embodies the masculinefacets of Salvatore Ferragamo’s distinctive ele-gance. Freshness opens the fragrance, com-bining aromatic notes of marjoram, effervescentcardamom and sparkling mandarin. In the heartnotes a comforting spiciness of saffron conveysintensity together with a modern touch ofPimento. A powerful dry down of woods such

as patchouli and vetiver intensify the masculinecharacter of the scent. Ambery cistus labdanumand soft white musk endow the fragrance withextreme oriental facets. The classy masculine flacon was created

by renowned designer Sylvie de France. Itsrefined and cubical structure is glorified by anelegant narrow matte strip with a black Attimologo. The soft grey glass lends a chic and urbanfeel and underlines the warm and intense struc-ture of the fragrance, whereas the cubic capwith its dark silver insert adds strength to thebottle. The Salvatore Ferragamo logo glimmersin red at the base of the flacon.The outer packaging sports a warm white

textile embossed paper, which recalls therefined texture of a Salvatore Ferragamo men’sshirt. The silver band and top add to the box’smodernity and masculinity, whereas the threeembossed bands recall the shape of the flacon.The cardboard is ecologically certified by theForest Stewardship Council (FSC).

Katherine Patch-Sleipnesjoins Gold Silk

TAIRO continuing its stridein the Mexican MarketTAIRO International continues to increase andexpand its business in the Mexican Markets.

TAIRO is currently expanding the P&G Pres-tige portfolio in the recently added Mexicanregions and accounts. Senior Area Manager,Ricardo Rivas, with his years of experience, isthe point person who manages and overlooksthe structure and implementation of new salesand training tactics in the region.

With the Tairo touch already in effect, theresults are being seen! Sears Cachanilla receivedbeautiful new impactful personalized Dolceand Gabbana and Gucci furniture, and as anoutcome of the improvement, more customersare being drawn to the counter to buy P&Gfragrances. TAIRO is also in the process ofdoing a similar update for Sears Rio in Tijuana.Recently, Sears Rio had a phenomenal engravingevent during Mother’s Day where P&G brandswere in the spotlight.

In addition, TAIRO is taking Coty Prestigeto new heights in the region. Davidoff Championhas had great success since its launch here.During Easter Week, Ultra Femme and TAIROcreated an outstanding Davidoff Champion ani-mation event in La Isla and Luxury stores. Theevent had spray models, a one of a kind Cham-pion game, and prizes for the lucky participantswho won.

A D V E R T O R I A L

Katherine Patch Sleipnes has been appointed

Gold Silk Regional Director for the Americas

and Caribbean as part of the strategic initiative

to provide additional sales support to this

increasingly important region.

As Regional Director, Patch-Sleipnes will

be responsible for all operations in the region,

including: Mexico; Central America; South

America; the Caribbean Islands, USA and

Canada, with a primary objective of developing

travel retail sales in Latin America. She will

also assist in the expanding Gold Silk brand

within the region’s local & tourist stores segment,

as well as airline and cruise retail travel channels.

Previously, Patch-Sleipnes worked for P&G

Prestige for over 17 years, where she held a

variety of sales positions, most recently as

Vice President Travel Retail Americas. In that

capacity, she was responsible for fragrance

brands Dolce Gabbana, Gucci, Hugo Boss,

Lacoste, among others.

Gold Silk will be meeting with clients and

prospects at this year’s annual ASUTIL

conference.

TAIRO continuing its stridein the Mexican Market

Attimo pour Homme bySalvatore Ferragamo

Offering a wider range of consumer andpersonal care electronics, digital imagingand accessories, Sea & Sky Supply hasbroadened its existing product portfolio.The company is keeping its main focuson Philips shaving and grooming, Clöudzand Fuji items. Its newest addition is the

brand Energizer, which is performing verywell in Latin America.The company considers the electronics

business a dynamic and rapidly developingmarket, with a consumer base that truststhe familiar and reliable brands that it offers. Sea & Sky’s most popular and unique

concept is Clöudz, which together withPhilips is exclusive to the travel retail marketworldwide. Provided with a tailor made dis-play, the concept offers a variety of travelcomfort accessories, such as microbeadneck pillows and travel blankets, Philipsheadphones, iPod- and iPhone casesand computer accessories. There isalso a complete Clöudz kids’ range of

licensed sunglasses, watches and coloringbooks. The company’s main goal is to increase

the awareness of electronics and accessoriesin its travel branch and to eventually bepresent in every duty free shop in the world.Sea & Sky will be present at the Asutil

conference in Cancun.

Sea & Sky Supply broaden portfolio

Sea & SkySupply addsClöudz and Fujiproducts to itsportfolio

Tommy Hilfiger courts vast potential with its entry into the travel retail market

Marcolin continues incrementingsales in travel retail

In Brief


Leading eyewear company Marcolin hasrecently opened a new showroom in Miamito accommodate meetings between thesupplier and its partnering travel retailaccounts. The company will optimize thespace by presenting its newest sunglasscollections.For spring Marcolin has launched the

Swarovski sunglass collection, and for fall,the Diesel Sunglass collection. Best sellers for the company in the Amer-

icas region include Tom Ford (styles Jennifer,Whitney, Charles, Rickie plus others) andRoberto Cavalli (styles 370 S, 576 S and589 S), said Marco Lares, Duty Free SalesManager, Marcolin.The company has also opened new

strategic accounts as a result of the DutyFree Show in Orlando. New retailersare being added to its list of clients, andits sunglass collections are present at a

number of key duty free locations in North,Central, South America and the Caribbean.According to Lares, purchasing a pair

of designer sunglasses is no longer a daunt-ing task, Marcolin manufactures fashion/lux-ury sunglasses with great selections of col-ors, sizes as well as styles. “The two major aspects to be considered

in this fashion trend while buying sunglassesare fashion and health,” notes Lares. “Invest-ing in a pair of branded sunglasses withoutconsidering these two issues will cost youreyes, investing in a pair of sunglasses thatwill protect eyes against dangerous UVrays is a very important decision.” “Thinking from the health perspective,”

continues Lares, “you are trying somethingon your eyes, while at the same time youwish to express an ideal fashion statementby choosing to buy the best fitting designersunglasses that express your personality.”

Siñeriz to open megastore in Uruguay in 2012For the past 23 years, Siñeriz Shopping’s1,800-square-meter store has offered travelersto Uruguay’s border city of Rivera only thebest in imported products. In a recent interviewwith Americas Duty Free, Siñeriz’s ProjectLeader Rafael Parodi explained that the com-pany is currently constructing a mega storeon the border with Brazil.

“The store will measure 10,000-square-meters and we’re planning on inauguratingthe location in February, 2012,” he explains.“Given the size, the store will be organizedby department. We’ve always prided ourselveson offering consumers a wide selection ofproducts in our existing store, and the sig-nificant size of the new location will allowus to carry essentially every category of dutyfree items. This will ensure that every client,regardless of preference or budget, will beable to find something to suit their taste.”

By the time the new store opens, Parodiasserts that Siñeriz will have also launchedits loyalty card. It will give frequent clientsthe opportunity to take advantage of a numberof exclusive promotions across categories.

“We’re working on a number of promotionsin conjunction with the planned release of ourloyalty card,” says Parodi. “Our three mostpopular categories at the moment are perfumes,spirits and clothing, so frequent buyers canexpect to see some great offers on these prod-ucts, as well as in other categories. The loyaltycard will also be applicable to products pur-chased in the new store when it opens, sovisitors to Rivera have a lot to look forward tofrom Siñeriz Shopping in the near future.”

Tommy Hilfiger’s travel retail debut at TFWA Asia Pacificin May signified a step of significant growth for theglobal lifestyle brand and for the market in general. “More than 5 billion people travel through airports

every year, with business travelers comprising a significantpercentage of overall travelers,” says Briac Pinault, VicePresident, Global Duty Free and Travel Retail for theTommy Hilfiger Group. “Entering the travel retail marketwill enable us to reach these consumers who, due totheir travel schedules, are spending an increasingamount of time in airports.”The booth at TFWA Asia Pacific replicated a travel

retail shop and showcased Tommy Hilfiger Spring/Sum-mer 2011 apparel along with accessories appropriatefor travel retail customers. Although a relative newcomerto the travel retail industry, the brand presented itswhole range and is already at work on exclusives.The brand’s cachet fits with the market through its

golf and beachwear collections, while the “aspirationalyet affordable” designs are already striking a chordwith international travelers in major airport locations in

Latin America, including Aeroparque Jorge Newberyand Ezeiza (Buenos Aires), Santos Dumont (Rio deJaneiro), Brasilia, Congonhas and Guarulhos (SaoPaulo), Carrasco (Montevideo) and Curbela International(Punta del Este). The company has chosen to concentrate on airports

and border stores during the first phase of the travelretail expansion. Downtown stores are also part of thestrategy, at a later stage. Pinault says the brand fitsperfectly into the duty paid environment, offering agood balance between accessibility and the brand’sstyle of classic American cool.“The Tommy Hilfiger brand embodies the idea of

preppy with a twist,” Pinault says. “Business travelers– the main consumer in international airports – aredressing less and less formally. As a true lifestyle brandTommy Hilfiger speaks directly to both the fashion-forward consumers as well as those desiring a morecasual approach to dressing.” In the Americas, Tommy Hilfiger is currently working

with IOSC, Dufry, Aldeasa and Duty Free Americas.

Hilfiger’shallmark – a fashionforward lookwith a casualapproach

Marcolin’s Marco Laresat the company’s newMiami showroom

Top Story: Neutral Duty Free


Americas Duty Free: Can you tell us a bitabout JH Partners and the private equityfund buyout of Neutral Duty Free?Enrique Urioste, CEO, Neutral Duty Free: JH Partners is a private equity fund based inSan Francisco, California that invests in con-sumer and retail businesses. We took the oppor-tunity to start looking for businesses with goodpotential for growth in Latin America. JH Partners owns businesses in the US,

Europe and Australia, and we agreed that LatinAmerica, driven primarily by the Brazilianeconomy, was a good place to invest. Whenwe started looking for businesses, Neutral rep-resented a great opportunity and it was apparentvery quickly that this was a good investment.

ADF: As the new CEO of Neutral, you’reessentially running your own business,which is no doubt a big advantage.EU: The biggest advantage is that I’m partneringwith a strong fund that is certainly open tolooking for more investments in Latin America.I really see Neutral as just the beginning of alonger road that will see more investments inthe very strong Latin American market. I’ve also been able to return to my home

country, a region that I know very well. Rightnow this area of the world offers a great num-ber of opportunities so I’m very excited aboutwhat the future will hold.

ADF: Although it’s still very early, can you tell us a bit about what possibilitiesyou’re entertaining for future investmentsin Latin America?EU: I can tell you that we are looking forother consumer and retail opportunities inthe region, in Uruguay as well as other LatinAmerican countries. Obviously, we’re lookingat investing in other duty free operations asthis would create nice synergies with Neutral,but this is a long-term project and the pos-sibilities are really open at this point.

ADF: Previously with DFA, you were instru-mental in incorporating some truly revo-lutionary store concepts in the US. Whatexcites you about setting your sights onLatin America? EU: Latin American consumers really under-stand luxury. This is a continent that is welldeveloped in terms of its luxury offering and

Beginning the journey

CONTINUED ON PAGE 20

Neutral will build a new 1,500-square-meter border store inBella Union, Uruguay, after which time existing Neutral stores

(pictured) will be brought in line with the new branding

Americas Duty Free speaks to Enrique Urioste about the recent private equity fund buyout of Neutral to get a sense of the journeythat lies ahead for the well known duty free executive BY RYAN WHITE

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retailers here have a very strong knowledge ofbranding. Our agenda here is to bring a luxury,first-class shopping experience to border stores,and Uruguay is the perfect place to do that.Development is the order of the day for

us—developing a new level of stores at theborder, brand relationships and a strongbranding strategy for all eight of Neutral’sexisting stores and the ones to come.

ADF: Speaking of the stores, are there anyplans in the works to build new locations?EU: We are currently planning the constructionof a 1,500-square-meter border store in BellaUnion, Uruguay on the border with Braziland Argentina. This will be a multicategory

store and after construction is complete, wewill begin bringing the aesthetics of the othereight Neutral stores in line with this new storein order to have a consistent branding. We have a very clear vision when it comes

to rebranding the stores and reallocatingspaces. In some locations we’re actually think-ing of doubling the retail space. That willeventually result in 4,000-square-meter storesin some locations.

ADF: Have you established a timeline forthese projects?EU: With regard to a timeframe, we’re lookingat a three-year horizon, from the remainderof this year to the first half of 2013. Con-struction of the first new store will begin asearly as the next 30 days and after its com-

pletion we’re looking at building more newstores in Rio Branco, Rivera and Artigas.

ADF: I’m assuming airport tenders are alsoon your radar in addition to building upbusiness at the border.EU: We’re open to new tenders but at themoment there’s no news as these develop-ments with Neutral are only a couple ofmonths old. With regard to Santa Fe,Argentina, I can tell you the number of inter-

national flights has been steadily increasingat Rosario Airport. If this trend continueswe may look at building new arrivals anddepartures stores as early as next year.

ADF: It’s quite fitting that this initiative,which underscores your belief in the poten-tial of Latin American travel retail, is gettingunderway just before ASUTIL. What candelegates expect from your talk on June 23at the conference?EU: I’m looking forward to speaking at thisyear’s ASUTIL conference and letting attendeesin on more of the details regarding our plansfor Neutral and our belief in the strength ofLatin America. Although we’ve only justbegun this journey, there are a lot of excitingpossibilities on the table. c

Like-minded partnersJH Partners differentiates itself fromtraditional private equity groups by theconsiderable operating experience ofits principals, which includes more than35 years of combined tenure in senioroperating roles. Furthermore, the com-pany works closely with the manage-ment teams of partner companies toprovide strategic, operating and financialguidance to facilitate growth and providemeaningful returns to investment andmanagement partners. The principalsof JH Partners manage, on behalf ofthemselves and their co-investors,approximately US$1 billion.“The senior partners of the fund

come from very strong retail and brandmanagement backgrounds,” saysUrioste. “They perfectly understandthree key concepts: retailing, luxuryand brand building. As a result, itseemed like a perfect partnership asopposed to working with a fund thatis focused only on numbers without aneye towards developing these threekey pillars.”

“Our agenda is to bring a luxury,first-class shopping experience toborder stores, and Uruguay is theperfect place to do that.”

Enrique Urioste, CEO, Neutral

CONTINUED FROM PAGE 16

Socios con opiniones similaresJH Partners se diferencia de los grupostradicionales de capital privado por laconsiderable experiencia operativa desus directores, que acumulan más de35 años de experiencia combinada encargos operativos principales. Además,la compañía trabaja en estrecha cola-boración con los equipos administrativosde sus firmas asociadas para proporcionarorientación estratégica, operativa yfinanciera a fin de facilitar el crecimientoy otorgar réditos significativos a las inver-siones y a los colaboradores de gerencia.La directiva de JH Partners controla, enrepresentación de sí misma y de susco-inversionistas, cerca de mil millonesde dólares estadounidenses.

“La gerencia principal del fondo cuentacon trayectorias muy sólidas en la admi-nistración minorista y de marcas,” diceUrioste. “Comprenden perfectamente tresconceptos vitales: sector minorista, delujo y creación de marca. Como resultado,parecen una alianza perfecta en com-paración al trabajo con un fondo que seconcentra solamente en cifras sin teneren cuenta el desarrollo de esos tres pilaresfundamentales”.



Un viaje que recién comienza

Americas Duty Free: ¿Puede hablarnos acercade JH Partners y la adquisición de NeutralDuty Free por fondos de capital privado?Enrique Urioste, Director Ejecutivo de Neu-tral Duty Free: JH Partners es un fondo decapital privado que radica en San Francisco,California, el cual invierte en negocios deconsumo y minoristas. Aprovechamos laoportunidad de comenzar a buscar negocioscon buen potencial para crecimiento en Lati-noamérica.JH Partners es propietario de negocios en

los Estados Unidos, Europa y Australia, y coin-cidimos que Latinoamérica, guidada funda-mentalmente por la economía brasileña, eraun sitio idóneo para invertir. Cuando comen-zamos a buscar negocios, Neutral representóuna gran oportunidad y rápidamente nosdimos cuenta de que era una buena inversión.

ADF: En su nuevo cargo de Director Ejecu-tivo de Neutral, usted administra esencial-mente su propio negocio, lo cual es, sindudas, una gran ventaja.EU: La mayor ventaja es que estoy asociadocon un fondo sólido que busca más inversionesen Latinoamérica. Veo realmente a Neutralcomo el comienzo de un camino más largoque verá más inversiones en el latinoamericanoque goza de mucha fuerza.También he podido volver a mi país, unaregión que conozco muy bien. En la actualidadesta zona del mundo ofrece numerosas opor-tunidades, por lo cual estoy muy entusiasmadocon lo que nos reserva el futuro.

ADF:Aunque es muy temprano aún, ¿puededecirnos qué posibilidades de futuras inver-siones en Latinoamérica podrían considerar?EU: Puedo decirles que estamos en busca deotras oportunidades de consumo y comerciominorista en la región, tanto en Uruguaycomo en otros países latinoamericanos. Ob-viamente, estamos buscando invertir en otrasoperaciones duty free, pues esto crearía exce-lentes sinergias con Neutral, aunque esto esun proyecto a largo plazo, y las posibilidadesestán disponibles realmente en este momento.

ADF: En su trabajo anterior con DFA, suparticipación fue vital para incorporar

algunos conceptos de tiendas realmenterevolucionarios en los Estados Unidos. ¿Quéle entusiasma en lo tocante a sus proyectoscon Latinoamérica?EU: Los consumidores latinoamericanoscomprenden realmente lo que es el lujo. Esun continente bien desarrollado en términosde ofertas de lujo, y los comerciantes minoris-tas de acá conocen a fondo la identidad demarca. Nuestra agenda acá es traer una expe-riencia de compras de lujo y de primeracalidad a las tiendas de frontera, por lo queUruguay es el sitio perfecto para poner enpráctica esta idea.El desarrollo es el orden del día para

nosotros, creando un nuevo nivel de tiendasen la frontera, así como relaciones de marcay una sólida estrategia de identidad de marcaen las ocho tiendas actuales de Neutral ytambién en las futuras.

ADF: Hablando de tiendas, ¿tienen algúnproyecto entre manos para construir nuevasinstalaciones?EU: En la actualidad tenemos en proyecto laconstrucción de una tienda de frontera de1,500 metros cuadrados en Bella Unión,Uruguay, en la frontera entre Brasil y Argentina.Será una tienda de categorías múltiples, y altérmino de su construcción, haremos co-rresponder la estética de las otras ocho tiendasde Neutral con la más reciente, para lograruna identidad de marca consistente.Tenemos una visión muy clara en lo tocante

a reformular la identidad de marca de lastiendas y a reubicar los espacios. En algunasinstalaciones estamos pensando duplicar elespacio comercial. Esto dará como resultadofinal tiendas de 4,000 metros cuadrados enalgunas instalaciones.

ADF: ¿Han determinado una cronologíapara esos proyectos?EU: En lo que respecta a plazos de tiempo,estamos considerando un horizonte de tresaños, a partir de lo que queda de año, hastala primera mitad del 2013. La construcciónde la primera tienda nueva comenzará en lospróximos treinta días, y después de su ter-minación tenemos en proyecto construir mástiendas nuevas en Río Branco, Rivera y Artigas.

ADF: Asumo que también tienen bajo su radarlas licitaciones en aeropuertos, además de lasolidificación de sus negocios en la frontera.EU: Estamos abiertos a nuevas licitaciones,pero en estos momentos no tenemos noticias,pues esta adquisición de Neutral sólo tiene unpar de meses de vida. En lo tocante a Santa Fe,Argentina, puedo decirle que la cifra de vuelosinternacionales ha ido aumentando sostenida-mente en el Aeropuerto de Rosario. Si sigueesta tendencia podríamos tener en cuenta laconstrucción de nuevas tiendas en las seccionesde llegadas y salidas el año próximo.

ADF: Es muy adecuado que esta iniciativa, lacual resalta su concepto del potencial del sectorminorista de viajes en Latinoamérica, se hayapuesto en marcha antes de la reunión de ASU-TIL. ¿Qué pueden esperar los delegados desu discurso en la conferencia del 23 de junio?EU: Tengo en proyecto un discurso en la con-ferencia de ASUTIL de este año, y comunicarlesa los asistentes más detalles con respecto anuestros planes con Neutral y nuestra confianzaen la solidez de Latinoamérica. Aunque es unviaje que acaba de comenzar, tenemos antenosotros muchas oportunidades atractivas. c

Americas Duty Free habla con Enrique Uriosteacerca de la reciente adquisición de Neutralpor fondos de capital privado para tener unanoción del camino que tiene por delante elreconocido ejecutivo duty free

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Thinking big


During IAADFS, Americas Duty Free reported on anumber of initiatives taking place at London Supply,including an upcoming project planned for the com-pany’s store in Iguazú. While plans are still beingfinalized, London Supply’s Commercial Manager

Francisco Heredia recently gave us a bit more information on theplanned changes to the store, noting that the project is “very big”and will likely take about two years to complete. “We’re looking to enlarge the Iguazú store significantly,” Heredia

says. “This is a very important project for London Supply. Along withthe increase in space, we will of course be adding more categoriesand increasing the product offering in existing categories. The finaltouches are being put on the plans as we speak and I should be ableto talk more about this development very soon.”In related news, the planning phase for renovations on the downtown

duty free store in Ushuaia is also nearly complete. The project consistsof adding an elevator and putting in a number of bridges connectingthe store’s five levels. In order to disrupt the store’s operation as little

as possible, many of the pieces to be added will be pre-fabricated offsite. Heredia notes that as the renovations are performed in Tierradel Fuego, London Supply will also take time to rework the layout ofthe shop in order to maximize the use of available space. At the downtown duty free store in Rio Grande, the operator is

also working on a renovation project that will see retail space at thestore increase by more than 50% in order to give consumers the samewide selection that they’ve come to expect from other London Supplylocations. “In addition to the renovations, we’re continuing to alignourselves with our suppliers in order to offer consumers the verybest in exclusive products,” says Heredia. “London Supply takes pridein continuing to innovate, both in terms of the aesthetics of the storesand the products within.”Finally, the children of Puerto Iguazú will soon have a secondary

school to look forward to sometime next year. Heredia confirmedthat plans are now underway to construct the building adjacent tothe primary school the operator built last year. More than 1,000students will study at the complex when it is completed.

The beginning of June will see the launch of Bright Star’sautumn/winter TAM Mercosur in-flight catalogue.Antonella Nuovo, Trade Manager at Bright Star, toldAmericas Duty Free that 20,000 copies are currently beingprinted for use onboard TAM flights to destinations such

as Cochabamba, Santa Cruz, Rio de Janeiro, Sao Paulo, Buenos Airesy Santiago de Chile. “We’re including a nice mix of new products and bestsellers, all

arranged conveniently according to categories such as fragrances,cosmetics, accessories, chocolates, spirits and tobacco,” explains Nuovo. New offerings in the perfume category include Dior and Bvlgari

Miniatures, Boss Orange Man, Yves St. Laurent’s Belle D’Opium,

Cacharel’s Amor Amor Absolu, CK Beauty and Lacoste’s Joy of Pink.Furthermore, Bright Star will be offering Versace for the first time inthe form of the latest launch, Vanitas. New in cosmetics, travelers will find Christian Dior’s Capture

Totale One Essential anti-aging serum and Lip Maximizer, Lancome’sRénergie Lift Volumetry, Celuli Laser products from Biotherm andofferings from Estée Lauder and L’Oreal. Another new cosmeticproduct that Bright Star will be selling in the in-flight magazine isL’Occitaine’s Provencal Pleasures travel kit. It contains Verbena GelDouche (75mL), Amande Milk Concentrate (50mL), Extra GentleKarite Shea Butter (50g) and Lavender Hand Gel (30ml).Other brands in this season’s in-flight catalogue include Troika,

Victorinox, B+D and Nici in accessories; Lindt, Ferrero and Nestlé inchocolates; and Johnnie Walker, Baileys and wines from Familia

Latin America Report

Staying strongFrom Northern Mexico to Tierra del Fuego, Latin American duty freeoperators see increased sales buoyed by the improving US economyand the purchasing power of Brazilian travelers BY RYAN WHITE

Flying high

�

www.dutyfreemagazine.ca THE AMERICAS DUTY FREE & TRAVEL RETAILING 29

“London Supplytakes pride in con-tinuing to innovate,both in terms ofthe aesthetics ofthe stores and theproducts within.”

Francisco Heredia, Commercial Manager, London Supply

“Whether on theground or in theair, our primeobjective is tokeep the offeringfresh for ourclients.”

Antonella Nuovo, Trade Manager, Bright Star

London Supply is set to begin a renovation project in Ushuaia that will see bridesand an elevator added to increase ease of access among the store’s various levels

“We take corporate social responsibility very seriously atLondon Supply,” Heredia concludes. “As our President TeddyTaratuty affirms, ‘The travel retail industry is celebrated formany reasons, but none is more important than its commitmentto giving back. London Supply is happy to be a part of thisculture of shared responsibility.’”


Zuccardi in spirits. “We’ve really worked hard to make sure that ourlatest in-flight catalogue exceeds the expectations of TAM Mercosurpassengers,” says Nuovo. In addition to the new in-flight offerings, Bright Star recently launched

Boss Orange Man in store and continues with a regular calendar ofevents that recently included Easter and Mother’s Day promotions, as

well as tastings of Pisco Capel and wines from Bodega Zuccardi.“Whether on the ground or in the air, our prime objective is to

keep the offering fresh for our clients,” explains Nuovo. “Given thehigh number of frequent business travelers in the region, we get a lotof repeat customers. For this reason, it’s very important that we givethem something new to discover every time they enter our store.”

Bright Star is known for its excellent selection of P&C products; the company has recently listed a number of new offerings for purchase in store and on TAM Mercosur flights

Baja Duty Free’s sales in Q1 2011 were up 5% over the same period last year, largely due to the improving economy

Baja Duty Free operates 8 stores along the US/Mexico border that vary in size from 110-square-meters to 560-square-meters; the operator is soon to open a 9th store in Tecate

Branching out at the border

Baja Duty Free currently operates 8 stores along theUS/Mexico border that vary in size from 110-square-meters to 560-square-meters and feature many popularduty free categories, from spirits, tobacco and fragrancesto accessories, luxury goods, apparel and confectionery.

Achim Fritzen, CEO of Fairn & Swanson Inc., parent company ofBaja Duty Free, says that the economic climate along the border hasimproved considerably over the last year, and that travelers are opento spending again.


Motta Internacional’s Director Erasmo Orillac says that sales ingeneral are up in 2011, largely as a result of increased spendingfrom two key nationalities. In Panama, Brazilians are leading theway in terms of purchasing, while there has been a rise in spendon the part of Colombian nationals in Colombia.

“Perfumes and spirits are leading the way, but we’ve also seen some very goodsales in the consumer electronics category,” says Orillac. “In terms of brands, JohnnieWalker Black Label always sells well and consumers are also purchasing Buchanan’sDeluxe. Across the board we’re seeing great results in the perfume category, butparticular standouts are Puig, Parbel and P&G.”Like many operators, Motta is seeing a rise in the demand for confectionery. As a

result, the company is increasing space in some of its stores to offer more variety tothe consumer. In locations such as Bogota, Cali, El Salvador, Nicaragua and Venezuela,Motta currently offers confectionery and the category is proving to be very popular. In shops where confectionery products will be added, Motta plans to dedicate 5–

10% of total store space in order to capitalize on this purchasing trend. Orillacasserts that selected products from Nestle, Kraft, Lindt & Sprüngli, Mars, Ferreroand Cadbury will be listed in various stores during the second half of this year.While the strength of the Latin American economy has no doubt helped duty

free sales in the region in general, Orillac cites Motta’s ongoing “Algo Especial”(Something Special) promotion as key to increasing sales at the company’s Attenza-branded stores. “The Something Special initiative is an advertising and promotionalplan that includes a shopping guide for consumers, a program of preferential spacelaunches, as well as advertisements and giveaways,” says Orillac. “It is organizedacross the six countries where Motta operates and centers onmonthly activations.”For example, in May’s shopping guide, consumers were

reminded of the many gifts suitable for Mother’s Day on saleat Attenza stores. Makeup tips were offered in the cosmeticssection and the recipe for the perfect Piña Colada was explainedin the spirits portion of the magazine. Furthermore, numerouspromotions across categories were communicated, many ofwhich included GWPs (P&C) or “buy two for” offers (spirits). “Promoting our brands in a constant process,” says Orillac.

“Although spend is up, it’s important to continue offering con-sumers something new to pique their interest each time theyenter the store. Travelers can expect many more pleasant surprisesfrom Motta as we move into the second half of the year.”



“Sales in the first quarter are up 5% over the same period lastyear,” he says. “The Mexican Peso has been stable for a while nowand this has contributed to the increase in business, especially withregard to the spirits and tobacco categories.”Baja Duty Free is currently in the midst of planning for a new

store opening in Tecate, CA. The store will measure 165-square-meters and open during Q2 2011. In the meantime, however, theoperator is focusing on a Father’s Day promotion for June. Inpartnership with Patrón Tequila, Baja Duty Free is offering customerswith a qualifying purchase the opportunity to create personalizedluggage tags that contain a message for their fathers.“This is a major promotion and we’re very happy to be working

with Patrón to give our customers a very nice GWP just in time forFather’s Day,” says Fritzen. “We also plan to feature men’s fragrancebrands that include Davidoff and Bvlgari in key areas throughout the

store. Finally, we’ll be launching new summer fragrances for men andwomen such as Issey Miyake’s L’eau D’Issey. Needless to say, customersthat visit our stores during the month of June will have an opportunityto take advantage of our great promotions and many new items.”While sales are currently up at Baja Duty Free’s stores, the operator

is not resting on its laurels. In addition to the upcoming opening inTecate, Fairn & Swanson is currently revamping the Baja Duty Freewebsite to give potential customers more information on upcomingevents, launches, promotions, wait times at the border and local news. “Once the new website is completed, we’ll also be expanding into

various social media sites,” explains Fritzen. “I see a lot of potentialfor sales to increase even more at our stores in the coming months,and making sure that we’re getting our information out to as manytravelers as possible is obviously a very important step towards BajaDuty Free’s continued success.”

“Promoting our brands is a constant process.Although spend is up, it’simportant to continueoffering consumerssomething new.”

Erasmo Orillac, Director, Motta Internacional

Offering consumers something special

Through the “Something Special” initiative, Motta Internacionaloffers consumers a monthly magazine detailing promotions acrosscategories (Pictured: May 2011 catalogue)

Watching trendsSales across Mannah Duty Free’s stores have increased year on year in the first quarter of 2011 due to the operator’s strong Brazilian client base


Mohamed Mannah, President of Mannah Duty Free,tells Americas Duty Free that sales in the first threemonths of 2011 were “beyond expectations dueto a significant increase over the same period lastyear.” He credits the successful quarter to the con-

tinued strength of the Brazilian economy. Indeed, a full 50% ofMannah’s client base is Brazilian. The average ticket price in the same period was US$90—up US$2

from the first quarter of last year—and Mannah says that whileBrazilians are spending the most, travelers from other economicallystrong Latin American countries are also purchasing: “Argentineansrepresent about 20% of our clientele, with Uruguayans, Chileans andEuropeans making up about 15, 10 and 5% respectively. Consumershave remained consistent in terms of the categories that they’re pur-chasing. Just as last year, perfumes, spirits and accessories, followedby cosmetics and tobacco, are the most popular.”Specific brands that are selling well at Mannah’s stores include

Carolina Herrera, Paco Rabanne, Versace, Bulgari, Ferrari, Moschino,Tommy Hilfiger and DKNY (perfumes); Johnnie Walker, AbsolutVodka and Chivas Regal (spirits); Ray Ban, Armani Exchange, RalphLauren, Tom Ford, Versace, D&G, Dior and Gucci (sunglasses); andMichael Kors, Fossil, Emporio Armani, Caterpillar, Mido, Certina andSector (watches). In addition to these popular brands, Mannah hasrecently listed Kaloo perfumes for children and French makeup brandBourjois. Furthermore, at the border stores in Cuidad del Este, Mannahhas rounded out its sunglasses selection with the addition of Burberry.“We’re very happy with the new listings of Kaloo and Bourjois,”

notes Mannah. “We’re also sure that the inclusion of Burberry sunglasseswill be a success given the quality associated with the brand.”Given the popularity of accessories across all of Mannah’s stores,

the company is currently in the planning phase for a renovation ofthe accessories section in its Petisquera border shop. In addition, theoperator continues to offer regular promotions that include GWPs,contests and raffles across all categories. “We’ll have more details on the planned renovations very soon,”

says Mannah. “Whether speaking of changes to the accessories sectionor our regular promotions, the catalyst for any of these initiatives isalways to give consumers more of what they want. Our stores arealways evolving and I think keeping our offering fresh is key to thesuccess we’ve enjoyed so far this year.” c

“Whether speaking ofchanges to the acces-sories section or ourregular promotions, thecatalyst for any of theseinitiatives is always togive consumers more ofwhat they want.”

Mohamed Mannah, President, Mannah Duty Free

Given the popularity of accessories, Mannah is currently in the planning phase fora renovation of the accessories section in its Petisquera border shop

34 THE AMERICAS DUTY FREE & TRAVEL RETAILING JUNE/JULY 201134 THE AMERICAS DUTY FREE & TRAVEL RETAILING JUNE/JULY 2011

London

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Antonella Nuovo, Gerente Comercial deB

Murante la IAADFS, Americas

Duty Free reportó que se estabanllevando a cabo numerosas ini-ciativas en London Supply, como

un próximo proyecto planificado para la tiendade la compañía en Iguazú. Aunque los planesestán siendo finalizados, Francisco Heredia,Gerente Comercial de London Supply, nos diorecientemente más información acerca de loscambios planificados para dicha tienda, desta-cando que el proyecto “es muy grande” y quedemoraría cerca de dos años para concluirse.“Estamos tratando de ampliar significati-

vamente la tienda de Iguazú”, dijo Heredia.“Es un proyecto muy importante para LondonSupply. Conjuntamente con el incrementodel espacio, incorporaremos, por supuesto,más categorías, y aumentaremos la oferta deproductos en las categorías existentes. Se lesestán dando los toques finales a los planes en

estos mismos instantes, y muy pronto podréhablarles más acerca de este proyecto”.En noticias relacionadas, la fase de planifi-

cación para las renovaciones en la tienda dutyfree de la zona comercial en Ushuaia está casiterminada. El proyecto consiste en la incorpo-ración de un ascensor y la colocación de variospuentes para conectar los cinco niveles de latienda. Con el propósito de interrumpir lomenos posible las operaciones de la tienda,muchas de las piezas serán prefabricadas enotro sitio. Heredia destacó que mientras se real-izan renovaciones en la Tierra del Fuego, LondonSupply también tendrá tiempo para reformularla organización interna de la tienda para aprove-chas al máximo el uso del espacio disponible.Por su parte, en la tienda duty free de la

zona comercial de Río Grande, el operadortambién está trabajando en un proyecto de ren-ovación que incrementará el espacio comercial

de la tienda en más del 50% para darles a losconsumidores la misma selección amplia exis-tente en otras instalaciones de London Supply.“Además de las renovaciones, seguimos colab-orando con nuestros suministradores, paraofrecerles a los consumidores lo mejor en pro-ductos exclusivos”, añadió Heredia. “LondonSupply se enorgullece en continuar innovando,tanto en términos de estética de las tiendascomo en los productos que contienen”.Finalmente, los niños de Puerto Iguazú ten-

drán muy pronto una escuela secundaria queestaría terminada en algún momento del próx-imo año. Heredia confirmó que ya se han puestoen marcha los planes de construcción del edificio,adyacente a la escuela primaria que el operadoredificara el año pasado. Cuando esté listo, másde mil estudiantes asistirán al complejo.“London Supply toma muy en serio la

responsabilidad social”, concluyó Heredia.“Como bien afirma nuestro presidente TeddyTaratuty, ‘la industria minorista de viajes eselogiada por muchas razones, pero ningunaes tan importante como su compromiso derecompensar por la ayuda recibida’. LondonSupply se complace de ser parte de esta culturade responsabilidad compartida”.


Pensar en grande

Desde el norte de México a la Tierra del Fuego, los operadores duty free latinoamericanos experimentan incrementos en las ventasimpulsados por las mejoras en la economía estadounidense y elpoder adquisitivo de los viajeros brasileños

Mantenerse firmes

El comienzo del mes de junio verá la inauguración delcatálogo de ventas a bordo otoño/invierno Bright Star deTAM Mercosur. Antonella Nuovo, Gerente Comercial deBright Star, le aseguró a Americas Duty Free que se están

imprimiendo actualmente 20,000 ejemplares para su uso a bordo delos vuelos de TAM a destinos como Cochabamba, Santa Cruz, Rio deJaneiro, Sao Paulo, Buenos Aires y Santiago de Chile. “Estamos incorporando una buena mezcla de nuevos productos

y de artículos más vendidos, dispuestos convenientemente de acuerdoa categorías tales como perfumes, cosméticos, accesorios, chocolates,espirituosos y tabaco”, explicó Nuovo. Entre las nuevas ofertas en la categoría de perfumes están Dior y

Bvlgari Miniatures, Boss Orange Man, Belle D’Opium de Yves St.Laurent, Amor Amor Absolu de Cacharel, CK Beauty y Joy of Pinkde Lacoste. Además, Bright Star venderá Versace por primera vez ensu producto más reciente, Vanitas. En cuanto a las novedades de cosméticos, los viajeros tendrán a su

disposición el suero anti envejecimiento y maximizador de labiosCapture Totale One Essential de Christian Dior, Rénergie Lift Volumetryde Lancome, productos Celuli Laser de Biotherm y ofertas de Estée

Lauder y L’Oreal. Otro nuevo producto que estará vendiendo BrightStar en el catálogo a bordo es el juego de viaje Provencal Pleasures deL’Occitaine, que contiene Verbena Gel Douche (75ml), Amande MilkConcentrate (50ml), Extra Gentle Karite Shea Butter (50g) y LavenderHand Gel (30ml).Otras marcas que estarán en el catálogo a bordo de esta temporada

son Troika, Victorinox, B+D y Nici en accesorios; Lindt, Ferrero yNestlé en chocolates; y Johnnie Walker, Baileys y vinos de FamiliaZuccardi en los espirituosos. “Nos hemos esforzado realmente paragarantizar que nuestro próximo catálogo de ventas a bordo supere lasexpectativas de los pasajeros de TAM Mercosur”, agregó Nuovo. Además de las nuevas ofertas a bordo, Bright Star inauguró recien-

temente la venta de Boss Orange Man en la tienda, y prosigue un ca-lendario regular de eventos entre los que figuraron promociones deSemana Santa y del Día de las Madres, así como degustaciones dePisco Capel y vinos de Bodega Zuccardi.“Ya sea en tierra o a bordo, nuestro principal objetivo es mantener

fresco la oferta para nuestros clientes”, continuo Nuovo. “Dada laalta cifra de viajeros frecuentes de negocios en la región, tenemosmuchos clientes repitientes. Por tal razón, es muy importante que lesdemos algo nuevo cada vez que entren en nuestra tienda”.

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Actualmente, Baja Duty Free opera 8 tiendasen la frontera entre los Estados Unidos y Méx-ico, cuyas dimensiones oscilan entre 110 y560 metros cuadrados, y venden numerosas

categorías po-pulares de duty free, desde espirituosos,tabaco y perfumes, a accesorios, artículos de lujo, prendasde vestir y confitería. Achim Fritzen, Director Ejecutivode Fairn & Swanson Inc., compañía matriz de Baja DutyFree, afirmó que el clima económico en la frontera hamejorado considerablemente desde el año pasado, y quelos viajeros están mostrando proclividad a gastar nue-vamente.“Las ventas en el primer trimestre aumentaron hasta

un 5% con relación al mismo período del año pasado”,explicó. “El peso mexicano ha estado estable por untiempo, y esto ha contribuido al incremento del negocio,especialmente con respecto a las categorías de espirituososy tabaco”.Baja Duty Free está actualmente en plena planificación

de una nueva tienda en Tecate, California, que tendrá165 metros cuadrados y será inaugurada durante elsegundo trimestre de este año 2011. Sin embargo, entre-tanto, el operador está concentrado en la promoción delDía de los Padres en junio. En colaboración con PatrónTequila, Baja Duty Free está ofreciéndoles a los clientes,con una venta elegible, la oportunidad de crear etiquetasde equipaje personalizadas que contengan un mensajepara sus padres.“Es una promoción importante, y nos complace

trabajar con Patrón para darles a nuestros clientes unbuen regalo con su compra para el Día de los Padres”,explicó Fritzen. “También nos proponemos vender marcasde perfumes de hombre como Davidoff y Bvlgari ensitios clave de la tienda. Finalmente, inauguraremos laventa de nuevos perfumes de verano para hombre ymujer como L’eau D’Issey de Issey Miyake. No hace faltadecir que los clientes que visiten nuestras tiendas enjunio, tendrán la oportunidad de aprovechar nuestrasmagníficas promociones y muchos artículos nuevos”.Aunque las ventas están aumentando en las tiendas

de Baja Duty Free, el operador no se ha dormido en loslaureles. Además de la próxima inauguración de la tiendaen Tecate, Fairn & Swanson está renovando el sitio Webde Baja Duty Free para ofrecerles a los clientes potencialesmás información acerca de próximos eventos, inaugu-raciones, promociones, tiempo de espera en la frontera,y noticias locales.“Una vez que se termine el nuevo sitio Web, también

incrementaremos nuestra presencia en varios mediossociales”, aseguró Fritzen. “Veo mucho potencial paraventas a fin de incrementar aún más en nuestras tiendasen los próximos meses, y garantizar que estamos dándolenuestra información a la mayor cantidad posible deviajeros es obviamente una medida muy importante parael éxito continuo de Baja Duty Free”.

Ramificación en la frontera


Erasmo Orillac, Director de Motta Internacional, afirmaque las ventas en general han aumentado en el 2011, engran medida como resultado de un incremento de losgastos de dos nacionalidades fundamentales. En Panamá,

los brasileños están a la vanguardia en términos de compra, mientrasque se ha reportado un aumento de los gastos por parte de losciudadanos colombianos en Colombia. “Los perfumes y los espirituosos están al frente, pero también

hemos tenido algunas ventas buenas en la categoría de electrodomés-ticos”, expresó Orillac. “En términos de marcas, Johnnie WalkerBlack Label siempre se vende bien, y los consumidores también estáncomprando Buchanan’s Deluxe. Aunque tenemos grandes resultadosen la categoría de perfumes, los principales son Puig, Parbel y P&G”.Como muchos operadores, Motta está experimentando un aumento

en la demanda de confitería. Como resultado, la compañía está ampliandoel espacio en algunas de sus tiendas, para ofrecer más variedad al con-sumidor. En tiendas de Bogotá, Cali, El Salvador, Nicaragua y Venezuela,Motta está ofreciendo actualmente confitería, y la categoría ha demostradoser muy popular.En las tiendas donde se incorporarán productos de confitería,

Motta tiene en proyecto dedicar del 5 al 10% del espacio total paracapitalizar esta tendencia de compra. Orillac explicó que se venderánproductos selectos de Nestlé, Kraft, Lindt & Sprüngli, Mars, Ferreroy Cadbury en varias tiendas durante la segunda mitad de este año.

Aunque la potencia de la economía latinoamericana ha ayudadosin duda a las ventas duty free sales en la región en general, Orillaccitó la promoción continua de Motta “Algo Especial” como factorclave para incrementar las ventas en las tiendas de marca Attenza dela compañía. “La iniciativa ‘Algo Especial’ es un plan pu-blicitario ypromocional que consiste en una guía de compras para los consum-idores, un programa de inauguraciones de espacio preferencial, asícomo anuncios y oportunidades”, afirmó Orillac. “[La iniciativa] seha organizado en los seis países donde opera Motta, y se enfoca enactivaciones mensuales”.Por ejemplo, en la guía de compras de mayo, se les record a los

consumidores los numerosos regalos disponibles para el Día de lasMadres, a la venta en tiendas Attenza. Además, se ofrecieron consejosde maquillaje en la sección de cosméticos, y la receta para la piñacolada perfecta en la porción de la revista destinada a espirituosos.Asimismo, se comunicaron numerosas promociones en las categorías,muchas de las cuales incluyeron regalos con la compra, (P&C) uofertas “compre dos por” (espirituosos).“La promoción de nuestras marcas es un proceso constante. Aunque

el gasto ha aumentado, es importante seguirles ofreciendo a los con-sumidores algo nuevo que despierte su interés cada vez que entren ala tienda. Los viajeros pueden esperar más sorpresas agradables deMotta, en la medida que entramos en la segunda mitad del año”,concluyó Orillac.

Mohamed Mannah, Presidente de Mannah Duty Free, lereveló a Americas Duty Free que las ventas en losprimeros tres meses del 2011 “superaron las expectativasdebido a un incremento significativo en comparación

con el mismo período del año pasado”. El ejecutivo atribuye el exitosotrimestre a la solidez continua de la economía brasileña. Por cierto,el 50% de la clientela de Mannah procede de Brasil. El precio promedio de venta en el mismo período fue de US$90—un

aumento de US$2 en comparación con el primer trimestre del añopasado—y Mannah afirmó que si bien los brasileños son los que másgastan, los viajeros de otros países latinoamericanos con boyanteseconomías también están comprando: “Los argentinos representan cercadel 20% de nuestra clientela, mientras que los uruguayos, chilenos yeuropeos componen el 15, 10 y 5% respectivamente. Los consumidoressiguen consistentes en términos de las categorías que han estado comprando.Al igual que el año pasado, los perfumes, espirituosos y accesorios,seguidos por los cosméticos y el tabaco, son los más populares”.Entre las marcas específicas con buena venta en las tiendas Mannah

están Carolina Herrera, Paco Rabanne, Versace, Bulgari, Ferrari,Moschino, Tommy Hilfiger y DKNY (perfumes); Johnnie Walker,Absolut Vodka y Chivas Regal (espirituosos); Ray Ban, ArmaniExchange, Ralph Lauren, Tom Ford, Versace, D&G, Dior y Gucci

(lentes de sol); y Michael Kors, Fossil, Emporio Armani, Caterpillar,Mido, Certina y Sector (relojes). Además de estas marcas populares,Mannah comenzó a vender recientemente perfumes Kaloo para niños,y la marca francesa de maquillaje Bourjois. Además, en las tiendasde frontera de Ciudad del Este, Mannah ha completado su selecciónde lentes de sol con la incorporación de Burberry.“Nos sentimos muy complacidos con la incorporación de Kaloo

y Bourjois”, aseguró Mannah. “También estamos seguros de que lainclusión de los lentes de sol Burberry será un éxito, dada la calidadasociada con la marca”.Dada la popularidad de los accesorios en las tiendas Mannah, la

compañía está actualmente en fase de planificación de una renovaciónde la sección de accesorios en su tienda de frontera en Petisquera.Además, el operador sigue ofreciendo promociones regulares conregalos con la compra, concursos y rifas en todas las categorías.“Muy pronto ofreceremos más detalles acerca de las renovaciones

que planificamos. Ya sea hablando de cambios a la sección de accesorioso de nuestras promociones regulares, el catalizador de cualquiera deesas iniciativas es darles siempre a los consumidores más de lo quedesean. Nuestras tiendas están en continua evolución y creo que man-tener la frescura de nuestra oferta es clave para el éxito que estamosdisfrutando este año”, concluyó Mannah. c

Ofrecerles algo especial a los consumidores

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Why they buynationality was selected to be manageable while still providing sta-tistically meaningful input, and the notion of having a specific incomethreshold was discarded to keep the results as open as possible.JMG-Research first produced a draft questionnaire and then

worked with the initial subscribers to fine-tune the questions andadd more specifics about product categories. “As the first wave ofother research to come in the future, we wanted to draw the generalframe of passenger behavior versus all the product groups and theirsub-categories,” Goldberg says. “So we first qualified our total of3,900 international passengers with their gender, age, annual income,kind of trip—business alone or in a group, leisure alone, as a couple,in a family or in a group—frequent flyer or not, flying on a regularairline or a charter/low-cost airline.”The field work with the 3,900 respondents took place at the end

of 2010.The option of conducting interviews on-site in airports wasquickly discarded as being way too expensive and time-consuming,Goldberg says. Enter the Internet. JMG-Research partnered withGMI, a leading data collection provider, to conduct the interviewsonline via computer-assisted web interview (CAWI). The primary questions asked respondents whether they entered

airport shops, what kinds of products they looked at, what kindsthey bought and the brands they selected. All the key categories werecovered: wine and spirits, tobacco, fragrances and cosmetics, fashionand accessories, jewelry, watches, gifts, confectionery and fine food.“We also covered the sub-categories, like women's fragrances, men'sfragrances, unisex fragrances, children's fragrances, miniature coffrets,makeup, women's skin care, men's skin care and sun care for fragrancesand cosmetics,” Goldberg says.Overall, respondents were asked three main questions:� did the traveler plan their purchasing ahead of time, before arrivingat the airport?� what did the traveler expect—and do—after arriving?

AParis-based JMG-Research recently completed a travelretail research study and distributed the results to itsinitial subscribers. The research study, titled “ConsumingBehaviors in Airports: Travelers lost in transaction - Whysome buy? Why too many don't?” aimed to identify the

factors that influence the decision by travelers to enter airport shopsand the factors that influence the buying decision once they’re there. “The whole program idea came last year, following talks with my

various contacts among brands sold in travel retail,” says Jérôme Goldberg,JMG-Research Managing Director. “Their key concerns can be summarizedin two questions: what can be done to push more passengers into theairport shops, and then what can be done to have them leave with ashopping bag full of products... therefore identifying all the key elementsof the airport shopping area experience, positive and negative.”The phrase “travelers lost in transaction” catches the main theme

of the study: that there is much more that travel retailers can do tocapture sales that so far have been “lost” simply because of lack ofdetailed, specific information about what encourages travelers to buyin airport shops. A synopsis issued by JMG-Research several monthsago notes that thanks to Generation Research, excellent data are availableon what is being purchased and what current sales volumes are. It’smotivation that’s the missing link. Without understanding buyingmotivators, retailers are left in the dark as to how to improve sales.“We made the choice to base our analysis not on the airport

location, but on the passenger nationality, to see how behavior canbe similar or totally opposite between citizens from different countries,”Goldberg says. To incorporate a broad range of nationalities, morethan ten countries from greater Europe, in addition to Japan, Chinaand South Korea in Asia and the US and Brazil in the Western Hemi-sphere, were covered. In Europe 2,400 respondents were involved, inaddition to 300 from each of the three Asian and two Western Hemi-sphere nations for a total of 3,900. The round figure of 300 per

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� what did the traveler buy, and what was the in-store experience like?In more detail, the questions looked at the decision to shop (or

not to shop) once the traveler is in the airport: is the visit planned oron impulse, and what product category is targeted? Once the shoppingdecision is made, the research explored what products are soughtand what is ultimately purchased, as well as what factors (shoppingspace, pricing, promotions, etc.) prompt the buying decision. The study is tailored for brand manufacturers and operators,

Goldberg says. The research objective in the case of brand manufacturersis to enable them to better understand, among other things:� what passengers expect in a specific product category;� what attractors are most effective in driving sales;� the unique buying characteristics of different nationalities.For operators, the themes to be illuminated include:� what passengers expect from a given operator;� hat cross-sells can be triggered;� how to improve footfall and conversion;� how to improve the shopping experience.The impact of product packaging was also a major focus area. “Thanks

to the sponsorship of our research by MeadWestvaco, which is theleading packaging solutions provider, we included some packaging-specific questions,” Goldberg says. This research included a complementaryspecific analysis on how passengers react to packaging in airport shops,with a focus on spirits, fragrances, cosmetics and confectionery.

ResultsBy combining and analyzing questionnaire results, Goldberg says,JMG-Research can assemble a profile of the “average” traveler andcompare that with unique, nationality-specific shopping and buyingcharacteristics. “For example,” he says, “it was very interesting tocompare the three key ratios. There’s penetration—the percentage

of shop visitors assorted by product category. There’s conversion—the percentage of buyers among the total number of shop visitors.And then you have the global purchase rate—basically the percentageof buyers among the total number of passengers.” Looking at these results, researchers have been able to identify

different “tribes” among purchasers. For example, there are the "shoptourists" who like to look around in the shops but don’t buy much, asopposed to the “pax with a mission" types—these travelers have oneof the highest conversion rates because they enter the shops havingalready decided to buy, and know exactly what they’re looking for.The up-front decision to focus on nationality has proven well

founded, Goldberg says. It turns out that traveler nationality can be“very segmenting.” For example, US citizens have a lower-than-average inclination to do travel retail shopping, while relativenewcomers from Brazil, Russia or China demonstrate an above-average interest in taking advantage of the travel retail opportunitiesthey find at airports.“All the elements in the answers are great insights for both manu-

facturers and operators to fine-tune the way they interact with thepassengers to multiply shopping opportunities and improve their mar-keting,” Goldberg says. One example of the ways in which the researchcan be applied comes from the identification of the “pax with amission” category. Once this type of shopper has been identified, travelretailers know they need to work on making sure that this categorycan easily and quickly find what they want once they’re in the store.Having completed the “standard” report, which is available now

to the subscribers, JMG-Research is now working with the subscribersto develop more detailed, deeper analysis, in part by mixing differentresponse categories, such as business travelers versus leisure travelers,frequent flyers versus those who fly less often, etc., to develop anunderstanding of more characteristic buying behavior patterns.

“The next step will be a yearly updateto see if there is any change in the behaviors,”Goldberg says. “Based on our clients’ needs,we’ll see if we need to add new countriesand investigate deeper into some categories.We might also do some qualitative researchto screen some specific aspects.” Other pos-sibilities include focusing on specific nation-alities and developing the ability to do ad-hoc research in response to client requests.Goldberg welcomes reader inquiries at

[email protected]. cThe behavior of Russian shoppers is generally similar to global norms, with notableexceptions when it comes to wines & spirits, jewelry and watches


Operator News: Top Brands


Top Brands currently operates 28stores, both domestic and dutyfree, located in Belize, Salvador,Panama, Honduras, Guatemala,Puerto Rico, Cuba and most

recently Santa Martha, Colombia. DannyYohoros, Vice President of Top Brands, recentlyspoke with Americas Duty Free about thecompany’s latest project, which involvesexpanding from Central America into theSouth American country of Chile. Top Brands will be opening ten El Dorado-

branded stores of varying sizes at Zona Francade Iquique (ZOFRI). The company’s distri-bution arm will also open a wholesale show-room as a means of introducing a numberof high-end brands to the duty free zone.Given its already stellar relationships withsuppliers, Top Brands will be distributingeverything from perfumes and accessoriesto confectionery.“We’ve been visiting ZOFRI for the last

year or so and we’ve identified a need fordistribution by a company that has both acomprehensive knowledge of duty free inthe region and a very strong bond with sup-pliers,” explains Yohoros. “With the exceptionof one or two companies, many of the over400 stores at ZOFRI are ‘mom and pop’ oper-ations, meaning that trading is a bit moreinformal than many large suppliers are usedto. Top Brands is in the perfect position to

be a key intermediary in this process, givingsmaller operators access to big name brandsand giving suppliers access to a region ofSouth America that is literally bursting withpotential.”Indeed, sales at ZOFRI have grown by

double digits over the last three years andbusiness shows no signs of slowing down.During the second half of last year, US$3.8million was invested to grow the alreadyexpansive zone and construction of new retailareas continues this year.Of course, through its El Dorado stores,

Top Brands will play a big role in the latestretail additions at ZOFRI with a total sellingspace of 750-square-meters. The company’sten stores will range in size from 50-square-meters to 200-square-meters, with the largerstores carrying a mix of duty free items andthe smaller stores being dedicated to single cat-egories. The stores will be modeled after existingEl Dorado airport stores in Central Americaand offer consumers the luxury shopping expe-rience they’ve come to expect from Top Brands.The stores are expected to open in July. Yohoros and company already have a man-

ager for the Chile operations who is basedin Iquique and is well versed in the innerworkings of the zone. Top Brands plans onemploying about 50 people to take care ofthe company’s distribution activities and theoperation of stores.

“It’s really about developing relationships,whether this be with store operators throughour distribution activities or with consumersin the stores,” says Yohoros. “We have a proventrack record of doing just that in CentralAmerica and we’re looking forward to takingour unique brand concept to ZOFRI. I’d liketo take this opportunity to invite supplierswho are interested in entering this verydynamic market to touch base with us.”Yohoros concluded our interview by reit-

erating the wide-ranging opportunities thatexist at ZOFRI. Indeed, his enthusiasm forthe duty free channel in Chile is an exampleof the general strength of travel retail through-out Latin America, a region that obviouslystill has a few tricks up its sleeve when itcomes to staying high on the list of places towatch during the coming years.“There’s a lot to be excited about,” asserts

Yohoros. “ZOFRI definitely represents notonly an opportunity to continue generatingbusiness with our tried and true multicategorylocations, but also to offer consumers fromcountries such as Bolivia, Paraguay, Peru andChile a very specialized service with storesthat are completely dedicated to a single cat-egory. We’ll also be helping worldwide brandsget their product into the second-biggestduty free zone in Latin America through ourdistribution services. As a result, we’re veryexcited about the opportunities to come.” c

“The opportunities to come”Top Brands takes its El Dorado store concept to ZOFRI as its distribution arm gives suppliers new opportunities to crack the thriving Chilean duty free market BY RYAN WHITE

In addition to distributing a number of brands currently unavailable at ZOFRI, Top Brands willopen ten new El Dorado-branded stores modeled after existing locations in Central America

Sales at ZOFRI havegrown by double digits

over the last three yearsand business shows no

signs of slowing down

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Working together is alwaysbetter. For duty free oper-ators, getting suppliersinvolved in promotionalactivities that increase

brand visibility and reputation while drivingsales is just common sense. But there areways to go about it—and things to avoid.For ARI North America, cooperation with

suppliers mainly takes the form of store pro-motions and staff contests, says John Bolger,Regional Manager, North America andCaribbean. “It provides incentives to the staffand also gives us some variety, with differentthings going on through the year,” he says. Operator-supplier collaboration works

across the full spectrum of categories, Bolgersays, and it can bring significant improvementsto a brand or category that is felt to be per-forming below potential as well as boost salesfor the top performers.ARI North America has a highly diversified

portfolio of locations. At the forefront arethe large stores in the big international airports,carrying a broad selection of categories, withspace and resources to do promotional workon all of them. The smaller locations also dogood business, but Bolger says they tend tobe dominated by the easier selling categoriessuch as liquor and tobacco.“We see the opportunity to expand those

stores by pushing other categories, especiallyperfumes and cosmetics and confectionery,”Bolger says. “These aren’t big stores and thatmakes it difficult, but those are areas wherewe think there is good potential for us if we

do more work on the promotions side.” More work is definitely in store. Bolger

says ARI North America plans to invest timeand effort in major airport locations andsmaller airports. “It’s harder to do thingsthere, but we’re keen to extend into theselocations as well.” Bolger now has a full-timeperson on staff to look after the many orga-nizational details that go into a good pro-motion, and is also looking at hiring a full-time merchandising manager to fine-tunepromotions in all the stores.Generally suppliers are keen to support

the operator’s efforts, Bolger says, especiallyin perfumes and cosmetics, but also in theother categories too. He cites Imperial Tobaccoas an example. About a year ago, the companyapproached ARI saying they wanted to remaketheir square footage. This particular promotioninvolves an interactive screen where passengers

view the duty free allowance for their desti-nation, as well as what the weather will belike when they arrive. “The supplier provided the idea and

design,” Bolger says. “It helped to give a betterlook to the whole tobacco area in the store,”which is an obvious added value for the oper-ator, as it increases activity for the entire cat-egory, not just for the brand being promoted,although the brand naturally gets the lion’sshare of the attention. When Bolger spokewith Americas Duty Free, he was about tolaunch a week-long Absolut promotionaround the Montreal Grand Prix.HKG Duty Free operates stores across the

southern border of the US, from Texas toCalifornia. Marco Arilli, Vice President ofMerchandising, finds that his suppliers gen-erally understand the value of collaborativepromotions.

For ARI North America, thedrawing power of ImperialTobacco’s interactive kioskrepresents added value

Absolut Vodka is one vendorthat understands the valueof short-term, event-centered promotions

A house unitedIn duty free, operators and suppliers always do better when they work together BY ANDREW BROOKS

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“Usually the suppliers are trying to per-suade us, because we have many things tochoose from,” Arilli says. “So it’s a matter ofus picking what we want to do.” Arilli alsogenerates ideas, of course, and his preferenceis for creating “theater” by running promo-tions that grab attention.“It’s one thing to walk into a store and

see a sign announcing a two-for-one or adiscount,” Arilli says. “But when I have apromotion involving an event, say a golftournament, I can have a person there dressedin golf attire or something like that. Thisdraws a lot more attention than just stickinga sign on a counter. That’s what I mean bycreating theater.” One style of theater thatworks well is a radio remote, where a localradio station will send a mobile studio to doa show inside or in front of a store. Usuallythis works best if the radio host is a well rec-ognized personality.Arilli also stresses the importance of being

selective. “You can’t have too many promo-tions going on in the store,” he says. “If there’stoo many promotions at once they lose theirvalue, but if you have one hard-hitting pro-motion, that’s when it has value. So we limitthe amount of promotions—we rotate themevery month and we track everything on a

marketing calendar.” Operator, supplier andcustomer alike benefit from this targetedapproach, Arilli says. In terms of contribution, the supplier usu-

ally furnishes POS, signage, GWPs and a cer-tain amount of funding. The operator alsohas a valuable role to play in offering expertiseon what kind of selling works best and howto avoid some common mistakes. “Our goalis to sell more without lowering the price,”Arilli says. “The way to do it is to promotewith GWP, as opposed to a price discount.”Arilli is also a firm believer in the value of

special packaging—an intangible addition toproduct value but one that he says seems tohave great persuasive effect on potential buyers.At press time, HKG was collaborating with anumber of suppliers on packaging-centeredpromotions, including one soccer-themedinitiative involving team and league symbols.“There are always creative ways to promote

items without reducing the price,” Arilli says.He’s guarded about giving away actual exam-ples that have worked well for HKG, so heoffers the example of a St. Patrick’s Day pro-motion (a very hypothetical example for him,since his clientele is mostly Mexican and theydon’t pay much attention to Irish festivals)where an operator could succeed by offering

a percentage discount on any product withgreen visible somewhere on the packaging. When Arilli spoke with Americas Duty

Free, HKG was engaged in a joint-effort pro-motion with MillerCoors that certainly looksset to generate its share of theater: local artistswere encouraged to paint the store walls withMiller-themed graphics, with the supplieron hand to determine the winning entries. “Generally speaking, some suppliers do

this well—others less well,” Bolger says. “Gen-erally suppliers are supportive once theyunderstand what you’re trying to do. Theproblem is that they themselves can’t commita lot of time to it in the small locations, sowe generally do the groundwork ourselves.It’s a lot of work for us.” For Bolger, the bestguarantor of a successful promotion is whenthe supplier coordinates the effort well ontheir own and has good project managementwhen it comes to promotions. “The companiesthat can actually deliver—they’re a dreamto deal with,” he says. The key to success? For Bolger, long-term

promotions are more viable than short-termones. “Short-term promotions tend to beworthwhile only if they’re centered on a spe-cific event. Duty free is different in that youhave the advantage of dwell time—peoplestay longer and they tend to pass by on a reg-ular basis—so a longer-term promotion canbring better results.” The Imperial Tobaccopromotion is a good example of the longer-term approach, while the Absolut Grand Prixpromotion, scheduled to run for 7-10 days,demonstrates the kind of effort that shouldbe centered on a specific event.Success is a tough thing to measure for a

brand like Imperial Tobacco, Bolger says. “It’sa dominant brand, so it’s likely to do well any-way,” he says. As mentioned earlier, it has valuefor the operator in that it “upgrades” theappearance and appeal of the whole tobaccocategory, while for the brand itself it’s a solidmethod of perpetuating and enhancing visibility. “Our buyers will usually initiate a plan

around a particular brand, and if we thinkit’ll work we take it on,” Bolger says. “It’s amatter of looking at the brand sales andseeing what we can do to bring more excite-ment into the stores.” c

Now that’s theater! An HKG promotion has

beauty advisors and Bacardigirls promoting products in

store while doing makeoversand offering drink samples

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Despite a spate of challenges thathave included the H1N1 virus, thebankruptcy of Mexicana, slow eco-nomic recovery in the US and car-tel-related violence in Mexico,

Aeropuertos del Sureste’s (ASUR) total passengernumbers across all its airports—Cancún,Cozumel, Huatulco, Mérida, Minatitlán, Oaxaca,Tapachula, Veracruz and Villahermosa—haveonly dropped a couple of percentage points inthe first quarter of 2011 as compared to thesame period in 2010. Furthermore, total trafficat Cancún Airport remained essentially flatover the same time frame.

There’s no doubt that ASUR has handledthe recent obstacles to traffic growth com-mendably. Indeed, the very fact that theairport authority has managed to stay on parwith passenger numbers over the last twoyears is a testament to the hard work beingput into all its airports. Specifically, CancúnAirport was recently named best airport inLatin America by ACI, and continued coop-eration between ASUR and retail partner

Aldeasa has resulted in a remarkable increasein non-aeronautical revenue at Cancún Air-port (Q1 2011 vs. Q1 2009) of 26.44% despitestagnant passenger numbers.

Simply the bestFor the second year running, Cancún Airportreceived top honors as best airport in LatinAmerica at Airports Council International’s(ACI) Airport Service Quality (ASQ) awards.The awards are noteworthy because airportsare scored by the passengers themselves. TheASQ passenger survey measures customerfeedback on a range of service delivery param-

eters that track the customer experience atan airport from the moment of arrival to thedeparture gate. Analysis of this data, recorded on the day

of travel, serves as a guide for better aligningservice provision with customer expectations.By benchmarking the airport with other sim-ilar airports, ASQ enables airports to seewhere they stand in competition with theirpeers. This in turn helps airports to prioritize

improvement projects and validate theirinvestments in new facilities and services.Manuel Gutiérrez Sola, Commercial Director

at ASUR, describes Terminal 3 of Cancún Air-port as “world-class,” and passengers obviouslyagree. After the security checkpoint, travelerspass through Aldeasa’s 1,800-square-meterwalkthrough duty free store before reaching adouble-height atrium that contains food serviceoperators and other stores. All the gates areclearly marked and located directly past theatrium. The simplicity of the design truly beliesthe ingenuity of the terminal’s planning.In early 2012 ASUR plans on renovating

Terminal 2’s lower level, where Aldeasa alsohas a walkthrough duty free store that measures730-square-meters. Aldeasa has noted thatsome updates will likely be made to the storeat the same time. “ASUR and Aldeasa are long-term partners, and we always want to be partof the airport developments,” says Pedro Castro,Aldeasa’s International Operations Directorfor Latin America, Middle East & Asia.No doubt key to the increases in non-aero-

nautical revenue at Cancún Airport over thelast two years is the fact that just as Aldeasahas a hand in ASUR’s renovation projects,ASUR coordinates with the operator on itsretail offers. “Throughout the year ASUR worksin conjunction with Aldeasa to organize exclusiveproduct launches, special promotions, tastingsand demonstrations, as well as the distributionof promotional catalogues,” says GutiérrezSola. “We really work hard to communicatewhat we have on offer to passengers.”

Power in partnershipGiven the current situation in terms of pas-senger numbers at Cancún Airport, it goeswithout saying that having offers on hand

Airport News: Aldeasa and ASUR


“ASUR takes pride incontinuing to improve itsairport infrastructure.We’ve invested a lot inthis airport and we’reextremely pleased withthe results.”

Manuel Gutiérrez Sola, Commercial Director, ASUR

Biding timeASUR and Aldeasa continue to make Cancún a world-class airport in preparationfor the eventual return of tourists to one of Mexico’s most dynamic cities BY RYAN WHITE

Cancún Airport’s Terminal 3

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Airport News: Aldeasa and ASUR


to entice travelers to spend is extremely impor-tant. The fact that Aldeasa operates two walk-through stores in Terminals 2 and 3 is helpfulas 100% of passengers at Cancún Airportmust pass through the shops.“Aldeasa has a front of house team of spe-

cialists dealing with customers and a back ofhouse team in charge of the stores that conductregular and complete analyses of the businessenvironment in order to continually adaptnew concepts to our customers, the passengerflow and purchasing behavior,” explains Castro.“ASUR also has an active role in developingthe retail area and we regularly receive theirvaluable feedback in order to constantlyimprove the shopping experience.”The layout of both walkthrough stores

highlights Aldeasa’s core business: perfumesand cosmetics, spirits, food, tobacco andaccessories such as watches and sunglasses.The operator has also boosted sales in Cancúnwith Les Boutique, a section dedicated tohigh-end leather goods. Aldeasa has had a lot of success with the

walkthrough concept in Cancún’s Terminal3, as well as in many other areas of the world.Castro notes that with each new store, theconcept evolves and improves. The neweststore at Cancún, the Terminal 2 Satellite walk-through, is a perfect example this type ofkinetic process. “It’s not enough to have travelers pass

through the store; we have to capture theirinterest and get them to stay in the shop aslong as possible,” Castro says. “Therefore, thelayout and having the most popular categoriesin strategic spaces is important. We also havepromotional areas located in the center of thestore to make passengers stop and have a look.”Another great example of cooperation

between ASUR and Aldeasa leading to pas-sengers spending more time in store is theaddition of plasma screens that display flight

information. Additionally, a recent increasein flights from Russia has prompted Aldeasato hire Russian sales staff. Knowing the pur-chasing power the Russian traveler, Castrosays, is an example of how Aldeasa tries totarget its most important destinations.US economic woes have contributed to fal-

tering traffic at Terminal 3, which servicesmostly North American customers, but Castroand Gutiérrez Sola both say that some tangiblesuccesses have been seen in Terminal 2. Regard-less, both agree that the retail offerings at bothterminals and the upcoming renovations willensure that when tourists return to Cancúnin full force, ASUR and Aldeasa will be readyto take full advantage with a top-class airportand a well researched product mix in the stores.

Looking aheadASUR forecasts moderate single-digit year-on-year increases in total traffic to CancúnAirport between now and the end of the year,culminating in 9 and 8.5% increases in Novem-ber and December, respectively. Moreover, theMexican Government will be investing US$12million to buoy the tourist industry this year. “The Mexican tourist industry is recovering,”

says Gutiérrez Sola. “Just over 80% of the

money the government is putting into tourismin the country will go toward promoting des-tinations where ASUR operates airports. Theremaining quantity will be split between thecruise industry and border crossings.”In addition to the expected increase in

traffic, Gutiérrez Sola notes that ASUR has anumber of projects in the works, includingthe opening of F&B locations such as BubbaGump Shrimp Co., California Kitchen Pizza,Johnny Rockets and Starbucks in Terminal2. Panama Jack and Watch My Watch storeswill also be opened in the same terminal.Renovations of existing stores such as HarleyDavidson, Los Cinco Soles, Sunglass Islandand Pineda Covalin will also take place inthe coming months. “ASUR takes pride in continuing to

improve its airport infrastructure,” saysGutiérrez Sola. “We’ve invested a lot in thisairport and we’re extremely pleased with theresults. The outlook for tourist activity inCancún indicates a moderate growth spurredon by economic recovery in the US, Canadaand Europe. Continued innovation at ourairport will allow us to better serve passengersas traffic continues to increase over the comingmonths.” c

“It’s not enough to havetravelers pass throughthe store; we have to cap-ture their interest and getthem to stay in the shopas long as possible.”

Pedro Castro, International Operations Director for Latin America,

Middle East & Asia, Aldeasa

Aldeasa has had some stunningsuccesses with the walkthrough concept,not only in Cancún but in many airports

throughout the world

Maintaining momentum

Company News: UETA and DFA


Americas Duty Free: Have you found areplacement for Enrique Urioste yet?Leon Falic: We’re currently working on hiringa replacement for Enrique. I can’t really giveyou a timeline, but I can say that our familyis and always has been heavily involved inthe day-to-day operations of both UETA andDFA, so the companies are certainly in goodhands in the meantime.

ADF: Can you tell us about any new storeopenings and renovations? LF: We’ve recently renovated a lot of ourexisting DFA and UETA locations in additionto building new shops. Construction has justbeen completed on two new stores, one inPunta Cana Terminal 2 and another in ElPaso. Each of the stores measures approxi-mately 400-square-meters.In addition, UETA opened three large

land border stores in Northern Uruguay onthe border with Rio Branco do Sul, Brazil.Each of the three new stores measures 2,000-square-meters. The sheer size of the storeshas allowed us to not only include all of thebig duty free categories, but also carry someextra products that Brazilians are lookingfor. They essentially look like large departmentstores, so the mix is quite variedDFA has also opened two Coach and two

Armani boutiques in New York and Miami.These openings are noteworthy becausethey’re the only Coach and Armani duty freeboutiques in the Americas. Finally, DFA isalso opening a Thomas Pink store in MiamiAirport in the very near future.Aside from that, I can tell you that we con-

tinue to bid on new tenders, although it’s alittle too early to discuss details. Rest assuredthat you’ll see a number of new things fromboth UETA and DFA in the coming months.

ADF: How has business been so far this year?LF: This year has actually been UETA’s bestyear to date. We’re very happy and hope thisupward trend will continue. DFA and UETAcombined, we’ve seen double-digit increasesin the first half of this year over the sameperiod in 2010. ADF: Are you noticing increases in spendand travel as the economy improves?LF: I think our success so far this year has todo with a combination of factors. Certainly,the economy is improving and people arebecoming more confident in their purchases.However, I think we also have better assort-ments in our stores and a better product mix.As a result, people are finding things thatthey can’t find anywhere else.

From DFA’s point of view, US travelersare starting to purchase more, but foreignclients are far and away our best clients astheir economies haven’t been as affected.Asian clientele tend to purchase the most inNew York, while in Miami we’re catering toa lot of Brazilian travelers. As a result we’vebeefed up our cognac category to appeal toAsians, while Brazilians tend to purchasefrom our wide selection of P&C products.Additionally, when speaking of nationalitiesthat are spending in Miami, it should be

mentioned that purchases from Colombianand Venezuelan travelers have really increased,especially in the category of spirits.

ADF: Are there any other categories to watchthis year?LF: To be completely honest, everything isgrowing right now. If I had to pick a few cat-egories, I would say accessories, especiallysunglasses and watches, as well as luxurygoods. Furthermore, confectionery is growinga lot. These are just a few of the categoriesthat we’ve seen significant growth in acrossboth UETA and DFA’s stores. It also helps that we have a regular calendar

of promotions featuring big name brandsacross categories. These promotions change

on a monthly basis and we really enjoy work-ing with our supplier partners to bring trav-elers something different every time theyenter our stores. Also important to sales is staff training,

and we’ve recently started a new programthat we’ll be able to speak more about in thenear future. Both DFA and UETA make aconcerted effort to continue upping the antewhen it comes to training because an educatedsalesperson often means the difference betweenmaking or losing a sale. c

“DFA and UETA combined,we’ve seen double-digit

increases in the first half ofthis year over the same

period in 2010.”Leon Falic, President, UETA and DFA

After a remarkable 2010 and an even better start to 2011, Leon Falic explains howUETA and DFA will continue their upward trajectories in the second half BY RYAN WHITE

Cross Accessories – Travel Retail David Ferreira – [email protected]

CONTACT US FOR OUR

innovative travel retail solutions

A fairy-tale fragranceL’Oréal kicks off a fresh new advertising campaign for Ralph Lauren’s Romance

Company News: L’Oréal Group – Parbel

Beauty powerhouse L’Oréal Grouphas unveiled a new advertising cam-paign for its ever popular RalphLauren Romance fragrance.

The quintessential scent is a key strategicfragrance for the company’s portfolio.Launched in 1998, Romance has become atop seller in the women’s fragrance seg-ment, according to L’Oréal. “Romance is the number one femi-

nine fragrance for Ralph Lauren fra-grances and continues to grow with areputable stance in the feminine fragrance

market, maintaining [its place] within the topthree best-selling fragrances in the travel retailfeminine market,” says Javier Labarta, CEOof Parbel (L’Oréal Luxury Product Americas). The fragrance embodies the key values of

Ralph Lauren. This includes “the expressionin the successful romantic encounter between

a man and a woman, the revelation of awoman’s heart, her loving nature, herdeeper identity,” says the company.“In 2011, we want to go further and

bring newness, excitement and a strongerdimension of emotion back to Romance.Indeed, 2011 is the year of romance.Considering at the number of royalweddings and high profile celebrityengagements, it is obvious that romanceis more than ever present on people’sminds and hearts,” says Guillaume deLesquen, President Worldwide of RalphLauren Fragrances.Fresh-faced Argentinean polo player

Nacho Figueras and his wife Delfi willgrace the advertisement visuals to further

enhance the scenario of an authentic love story.“Choosing Delfi and Nacho was a natural

choice for Ralph Lauren when it came timeto develop the new Romance campaign. Theirlove for each other is charming andorganic...They have an international appeal

as they travel the world together as a familysupporting Nacho in his Polo tournaments,but it’s their honest approachability andgenuine family love that transcends across theglobe,” comments Labarta. The idea behind Romance’s new campaign

is to “portray and express the genuine charmof a real-life romance, real passion, real loveand bring a new level of emotion. The objectivewas to tell our romantic story with a real-life couple and portray their true aspirationalfairy-tale life,” says Ralph Lauren’s de Lesquen.The couple were photographed in their

house in Argentina, with their family, horsesand dogs, which certainly brought the cine-matic element that is unique to the RalphLauren world.Ralph Lauren also wanted to associate

Romance with the brand’s lifestyle of eques-trian Polo heritage. Both husband and wifeare living a modern age fairy tale, says deLesquen. “They convey to our new campaignpassion, sincerity, bringing back the essenceof romantic love. For the first time, the cam-paign is in color to express the spontaneityof a true love story of the real-life couple.”The advertising visual captures a special

moment, with Figueras stealing a kiss fromhis wife while horse riding around the couple’sestate.This new visual is available for print, TV

and online with a two-minute trailer thatfeatures clips of an interview with the couple. On the POS front, huge emphasis will be

placed on new merchandising and impactfulin-store visuals that will glorify the new adver-tising for the fragrance and reinstate a strongin-store presence.Labarta explains that no matter what the

economic climate, whenever the local marketinvests in their local market media, it impactsthe company’s sales. An example of this, henotes, was when the US local market launchedits World of Polo campaign on Father’s Dayin 2009.Despite the slow economy, the World of

Polo franchise grew during the time of thecompany’s media investment. L’Oréal is con-fident it will have even better results with itsnew campaign for Romance.“Ralph Lauren believes strongly in the new

Romance campaign,” says Labarta, “and astheir media investment increases in the brand,we will see a positive impact in our stores.”c


BY HIBAH NOOR

New RalphLauren Romancein store visual

Javier Labarta,CEO, Parbel*Photo courtesyof ZoltanPrepszent

THE AMERICAS DUTY FREE & TRAVEL RETAILING JUNE 2011

Oilily Beauty BagSpring/Summer 2011

Company News: Colorful Licenses International BV

Cashingin oncolor

With its brilliant, multi-colored Oilily lifestyle brand, Colorful Licenses International makes its vibrant mark in duty free

BY HIBAH NOOR


THE HISTORY Oilily was conceived by Marieke and Willem Olsthoorn in 1963.The unique signaturestyle of Oilily came about when the founders couldn’t find nice clothes for their children. As a result, Oilily products focusedon unique color combinations, striking designs, unexpected combination of materials, folkloric elements and high value.

arrangement for the company, in comparisonto the domestic market. “In the local marketswe and our partners find some difficultieswhen it comes to the registration of importedtextiles, perfumes and cosmetics. This makesthe whole process of delivery and customclearance more complicated, expensive andslow, with all the commercial consequencesthat this entails,” says Homburg. “Fortunately,

we do not experience this situation on theduty free markets.” Nonetheless, business in the local market

is growing year on year, and the potentialfor future growth is there, sums up Homburg.“Knowing that consumers are happy withOilily products (will) motivate the team forthe work ahead.”

Range of productsColorful Licenses Int. offers several Oililyaccessory products, including the entire Oililyperfumes range, beauty bag collections (a verycommercial and compact collection) and fash-ion bags collection (a much larger collection).

The fashion bags collection, which includesa children’s and women’s group, is morefashion oriented. There is also an Oililyluggage and travel collection and the Oililyscarves collection. Best sellers are Oilily per-fume products and the Oilily beauty bagscollections. Color continues to be an important sig-

nature for the brand, as the company continuesto offer customers Oilily productscharacterized by magic, vibrancy,color and quality. These character-istics, says Homburg, are in linewith the wants and taste preferencesof South and Central Americanconsumers. “Oilily products givethese emotions of satisfaction tothe consumers, and this is the reasonwhy our company and our partnersare experiencing this success,” saysHomburg. In terms of new launches, Oilily

is currently introducing two bagcollections annually – the SpringSummer and Fall Winter collections.Each comes with completely newprintings, designs and models. On the perfume front, there is

some revamping taking place.“Regarding the perfume line, wewill relaunch, in September, ourOilily Classic Fragance, almost 20years on the market, with a newimage, new visuals and a new packaging,” says Homburg.“Piquing shopper interest, ColorfulLicenses recently unveiled onboardexclusives gift sets, which have beenselling well on airlines worldwide.”

It would be fair to say that Colorful LicensesInt. is pretty well versed when it comes toknowing its clientele, and the specific needsof customers in each region. This includesthe Americas. “We know that the traveler in the Americas

is a very mature traveler and consumer. Theyare consumers looking for special and uniqueproducts for themselves and also for gifts fortheir family, friends and beloved,” says Hom-burg. “They know what they want and whatare they looking for. They are modern, inde-pendent, self assured, very well educated,interested in fashion, and very attentive forquality and luxury products.” c

ounded in the 1990s, ColorfulLicenses Int., a Dutch licensee offragrances and accessories, hasbrought a world of color to theduty free channel with its signa-ture brand Oilily.

With Oilily lifestyle products at its core,the company is currently active in the travelretail and duty free markets across Europe,Asia and the Americas. “We know the great impact that

the travel retail and duty free marketshave on brand awareness globallyand also in the domestic markets,”says Cees Homburg, the company’sFounder and Director.Homburg had a multifaceted

organization in mind from the verybeginning – a company that wouldmanage licenses for global brands.In the Americas duty free channel,Colorful Licenses Int. started earlyby partnering with sought-afterretailers in Uruguay and inArgentina. Its goal was to commer-cialize Oilily products in the market,and it has been pleased with its suc-cess so far.“The results have been amazing.

Thanks to this success, we areexpanding quite fast in new dutyfree markets in these regions, aswell as in domestic markets in Southand Central America,” explainsHomburg, whose vision includesplacing a heavy focus on the Centraland South American markets rightthrough to 2020. To get a sense of where the com-

pany stands, Homburg explains that in SouthAmerica Oilily products are doing wellbetween the borders of Argentina and Braziland Uruguay and Brazil, along with CentralAmerica, namely Mexico. “In the next threeto four years we would like to be present in80% of the duty free markets in these regions,”he notes. “Of course Brazil and the CentralAmerican countries are one of our focuses.”The breakdown of worldwide duty free

turnover for the company is as follows: 54%in Europe, 33% in Asia, 7% in the Americasand 6% in the Middle East. Duty free also has the added benefit of

providing an easier import and distribution

New visual for Oilily Classic Fragance

F


Two men, two storiesThe compelling presences and achievements of Oscar Pastorius and Enrique Iglesias provide the fuel for new launches from Essence Corp.

BY HIBAH NOOR

Essence Corp’s Clarins Group division, based in Miami, has associatedits leading fragrance brands, Azzaro and Thierry Mugler, with com-pelling masculine personalities to further boost the success of theirfragrances Eau d’Azzaro pour Homme and Thierry Mugler’s A*Men.

The new brand ambassador for A*Men is the outstanding athlete OscarPistorius, a world-class sprinter who was born with a congenital malformationthat resulted in the amputation of both legs when he wasn’t yet a year old.He learned to walk with artificial limbs and went on to become an outstandingsprinter using special carbon fiber prosthetics. He won several medals in the2004 Paralympic Games in Athens and became triple world record holderand triple Paralympic champion in the 100, 200 and 400 meter races. A*Men was the first men’s fragrance created by Thierry Mugler, and for

Clarins Group, the fragrance, its designer and the athlete are a perfect fit.“Oscar Pistorius possesses the masculine values which Thierry Mugler holds so dear:he shows that by using mental strength and willpower man can exceed the limits ofwhat is possible, make incredible achievements and create a remarkable destiny,” thecompany said in a statement on the new relationship with Pistorius.“For me, Thierry Mugler is an audacious and innovative brand, constantly pushing

the boundaries,” Pistorius says. “I identify myself with the image conveyed by A*Men:personally excelling, the taste for a challenge, fulfilling your dreams… The message Ispread on a daily basis is to encourage oneself to find the courage and inner strengthto defeat prejudice, to not be influenced by the way other people look at you.”The worldwide A*Men campaign anchored on the Pistorius legend was launched

in March. The fragrance features an oriental woody dimension that establishes anintense, virile character, matched with a vigorous dimension rooted in boldness andtenacity. The fragrance is available in a 100ml refillable metal spray and non-refillable100 and 50ml rubber sprays. The line is complemented by a 125ml deodorant spray.This year, exclusively through travel retail in the Americas and the Caribbean, Clarins

Group will launch a new Azzaro fragrance and a new visual with Enrique Iglesias, whohas been the face of Azzaro pour Homme since 2009. The campaign accompanies thelaunch of “Eau d’Azzaro pour Homme,” an alternative to the more intense “Azzaropour Homme” that nonetheless maintains the sensual trademark of the original.Hesperidia citrus oils and lavender give the new fragrance its lightness, while woodyand aromatic tones establish the scent’s character, and patchouli, musk and sandalwoodprovide the sensual foundation.Clarins Group describes Iglesias as the ideal masculine incarnation of its values;

“an alter-ego that is a testament to the brand’s Italian roots, embodying the intrinsicand compelling seduction of this fragrance.” The new promotional campaign emphasizesthe artists’s deeply sensual appeal and masculinity.Eau d’Azzaro pour Homme is available in 100 and 50ml eau de toilette sprays and

a 150ml deodorant spray. Following the exclusive travel retail launch in the Americasand Caribbean, the worldwide rollout will take place in 2012. c

Company News: Essence Corp., Clarins GroupSinger Enrique Iglesias has been the face of Azzaro pour Homme

since 2009, now gracing the ad visual of Eau d’Azzaro pour Homme

Athlete Oscar Pistorius is the new brandambassador for Thierry Mugler’s A*Men

Beauty Beat: Fragrances


Fresh fragrancesA line-up of innovative fragrances welcomethe new seasonBY HIBAH NOOR

Beyonce Heat RushCompany: Coty BeautyPrice: Edt 100ml: US$50; Edt 50ml: US$42Description: The fresh,sparkling, fruity fragrancecaptures Beyonce’s shiningpersonality and passion for life,all wrapped in a soft seduction

Belle D’OpiumCompany: Yves SaintLaurent, L’OréalDescription: The “next-generation” version ofthe brand’s iconicOpium fragrance is anoriental scent developedby perfumers HonorineBlanc and AlbertoMorillas. The notesinclude Casablanca lily,sandalwood, gardenia,white pepper, jasmineand narguile accord

Too Too by Betsey JohnsonCompany: InterParfums Inc.,Essence Corp.Description: The fragrance wasdirectly inspired by the designer’screativity and the brand’soriginality. This chypre fruityfragrance blends notes ofpineapple, mandarin, musk andginger with fruity and floral heartnotes. The base notes mingleblack vanilla and patchouli withwoody notes. The whimsical scentis encased in a feminine roundshaped bottle with black fishnetstockings covering it. The frostedsemi-opaque bust sports a shinyblack bustier. A frilly embellishedpink tulle tutu dresses the bottle

Montblanc LegendCompany: Essence Corp.Description: Created byOlivier Pescheux, thescent belongs to thefougere fragrance family.The design of the flaconwas conceived by Montblanc’s in-house design team, the bottlecaptures the essence ofmasculinity, timeless design, andbears the classic Montblanchallmarks

Elie Saab Le ParfumCompany: Beauté PrestigeInternationalDescription: Created byFrancis Kurkdjian, thefragrance pays homage todesigner Elie Saab. Thefloral-woody scent isencased in a luminousheavy glass, cut like acrystal showing off thehoneyed tones of theperfume

Pure NauticaDiscoveryCompany: Coty BeautyPrice: Edt 100ml: US$55;50ml: US$42Description: A scent ofenergizing freshness, themasculine breeze of spicywoods is perfect for theadventurous man

Jimmy Choo EdpCompany: Essence Corp.Description: The fragranceconsists of fruity chypre noteswith warm, rich, woody depths.It’s inspired by modernwomen – strong, beautifuland alluring. Luminousgreen top notesprovide a burst offreshness, while theheart contains a richand exotic Tigerorchid. The basenotes comprisesweet toffee andIndonesian patchouli

Beauty Beat: Skincare & Cosmetics

Beauty regimeCreative cosmetics and revolutionaryskincare: traveling consumers willhave plenty of options to choosefrom this seasonBY HIBAH NOOR

Cellular Radiance Emulsion SPF 30Company: La PrairieDescription: A light, skin-brightening,moisture-replenishing lotion with a highlevel of SPF protection and multipleanti-aging benefits, Cellular RadianceEmulsion SPF 30 is designed to helprestore youthful skin and vitality Rouge Pur Couture

Company: Yves Saint Laurent, L’OréalDescription: A new-generationlipstick inspired by Monsieur SaintLaurent’s iconic color palette –red, fuchsia and orange – in acollection of captivating coutureshades that offer each complexiona customized look. Lips aresaturated with intense, stay-truecolor, thanks to the ColorevealTechnology, while natural extractsprovide comforting moisture thatlasts all day

Colour DefinitionOmbre Minérale 4couleursCompany: ClarinsGroup, Essence Corp.Description: Highlyconcentrated in mineralpigments, these eyeshadows really light upthe eyes. The setincludes four satin andiridescent shades andtwo foam applicators

Cellular Eye Cream Platinum RareCompany: La PrairieDescription: Combines the intense and immediate actionof a high-performance serum with the superb hydratingpowers of a rich yet light moisturizer that melts into theskin. The key ingredient is Pure Colloidal Platinum, whichhelps reorganize and rebalance the skin’s natural bufferzone, shielding it from the damaging effects of externalfactors and preventing unnecessary moisture loss

Cellular Energizing BodycareCompany: La PrairieDescription: The collection includes, Cellular EnergizingBath and Shower Gelee and Body Lotion. The one partskincare, one part fragrance set not only hydrates,smoothes and firms the body; it also invigorates the psychewith an intriguing olfactory blend of buoyant fruity and spicynotes with a beautiful floral heart

Double Strength Deep Wrinkle FillerCompany: Kiehl’s, L’OréalDescription: A breakthroughwrinkle treatment that offersinstant and long-term results- without the use of silicones.It is clinically demonstrated todiminish the look of lines andwrinkles and has been shownto minimize the number offacial lines over time, in aslittle as four weeks


� Sea & Sky Supply is an official Duty Free distributor offering a wide rangeof A-branded electronics worldwide and exclusive distributor for Cloudztravel comfort accessories and licensed kids products. � We strive to fulfill the retailer’s needs by offering plug-and-play conceptsof electronics together with travel comfort accessories.

� Sea & Sky Supply is an official Duty Free distributor offering a wide rangeof A-branded electronics worldwide and exclusive distributor for Cloudztravel comfort accessories and licensed kids products. � We strive to fulfill the retailer’s needs by offering plug-and-play conceptsof electronics together with travel comfort accessories.

Laura Klingeman, Sales Manager, Latin-America and MilitaryTel: +31 786534586 � Website: www.seasky.nl

Your professional duty free travel retail supplier

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Verdon Outdoor Moisturizer SPF30 50mlCompany: L’OccitaneDescription: A moisturizing andanti-UV fluid that resists towater, in a nomad andpractical tube, a shield foroutdoor activities

High DefinitionMascaraCompany: Clarins Group,Essence Corp.Description: Clarins offerstwo brushes in one wand.The brush with nylon fibreshelps add volume, helpingto thicken the entire lengthof each lash. The elastomerbristle tip hugs and definescorner lashes including theirtips that traditional mascaratends to forget

Magic Brush MascaraCompany: Artdeco cosmetic GmbH

Description: A two-in-one mascara offered in

an easy-to-use dual-wiper system: the wiper

in the smaller cap refines the application for a

clean sweep and a natural day look, while

using the larger cap loads the lashes for

greater impact and a dramatic look and

volume at night

Rose ShimmeringGel Limited EditionCompany: L’OccitaneDescription: A fresh andmoisturizing gel whichleaves an iridescent veilon the skin

Everlasting Compact Foundation SPF 15Company: Clarins Group, Essence Corp.Description: Clarins has created a breakthroughhigh-tech compact foundation.The texturecombines the lasting hold of its Everlasting liquidversion with the softness of a powder plusClarins skincare expertise

Company News: Sisley Paris


pecializing in skincare, fragrancesand cosmetics for three generations,Sisley Paris is a family-run businessthat is selectively branching out intonew duty free territories.

The Paris-based companyopened a regionaloffice in Miami, headed by Managing DirectorArnaud Naintré and Area Director AmericasSilvia Valderrama, who is in charge of LatinAmerica and Caribbean local markets andNorth and South America for duty free.

Americas Duty Free spoke with Valderramato get a sense of where Sisley is headed next.She says that because it is a prestigious brand,Sisley distribution is selective and this is alsothe case for travel retail. “Worldwide we are

in about 150 duty free doors, mainly in Europewith 80,” says Valderrama.Sisley was first introduced to travel retail

in the Americas through Brazil in 2004. Cur-rently, the brand is available in seven doors inairports in the Americas. This includesWash-ington Dulles, Miami, Panama Tocumen, Mex-ico Benito Juarez, Sao Paulo Guarulhos andRio de Janeiro Galeao.“Our clientele is very excited and they are

now looking for us at the airports. Theyexpect the same expert advice they receivein the local markets and this is our main pri-ority, having our beauty consultants preparedto provide advice and service with the timeand space constraints we encounter in anairport,” says Valderrama.The offerings in the market are anything

but slim. Sisley offers the same assortment intravel retail as it does in the local markets, “and

this year we are introducing Travel RetailKits,” explains Valderrama. Amongst the company’s best sellersare the skincare lines Sisleya, Hydra-global, All Day All Year EmulsionEcologique, night treatment Supremya,

and the company’s fragrance Eaudu Soir and the Oil Free Make-Up Phyto Teint Eclat.What sets Sisley apart is the com-

pany’s focus on the product itselfrather than advertising. “Being afamily-owned company, independ-ent and not in the stock market, thecompany follows a long-term policy.The D’Ornano family is involvedat all levels of the company startingwith the product development,”explains Valderrama.

The importance placed on research and

testing has no time or budget constraints; whatis key is building a coherent line based on phy-tocosmetology know-how. Phytocosmetologyinvolves using natural plant extracts in beautyproducts. Each natural extract contains keyactive ingredients that perform a specific action.The synergy of natural extracts results in theamplification and strengthening of the effectsof each individual active ingredient.In terms of price positioning, Sisley com-

pares with high-end brands such as La Prairieand Estée Lauder’s La Mer. Having this posi-tioning is also an incentive for travelers tobuy Sisley products in duty free, where theycan save on cost. For added value, Sisley offersspecial gifts-with-purchase, such as pouchesfilled with samples, which are also availablein the local markets.Valderrama explains: “We are still far from

our potential distribution in travel retail. Theobjective is to open slowly in doors wherewe will have the suited sales and the prestigiousimage we need to ensure. Latin America air-ports are definitely the priority as Sisley isconsistently growing in those local markets.”

About SisleyWhen the Cont Hubert d’Ornano foundedSisley in 1976, the aromatherapy and phy-totherapy wave had not yet hit Europe. Theuse of plants and essential oils in beauty prod-ucts was still a highly innovative concept.The Cont Hubert d’Ornano understood

very early on that the plant world offers anextensive field of research, with around 800,000different plants to be found on the planet.Given that the life of man is closely dependenton plants to breathe, eat and heal, he saw thepotential of developing research into this area.A true pioneer, he specialized his research

laboratories in phytocosmetology and choseto use the best plants to create the best cosmetics. c

SThe green pioneers

“Our clientele is veryexcited and they are nowlooking for us at the air-ports. They expect the sameexpert advice they receivein the local markets andthis is our main priority...”

Silvia Valderrama, Area Director Americas, Sisley Paris

BY HIBAH NOOR

Best selling skincareline Sisleya

Sisley’s top sellingfragrance Eau du Soir

As one of the early developers of phytocosmetology, Sisleycontinues to lead the way in the premium end of the market

Company News: LeSportsac

LeSportsac

’s Joyrich

Spring 201

1 collection

lassic American lifestyle brand LeSportsachas embarked on a string of new collabora-tions with edgy and unique partners to intro-duce prolific new collections for the winter season.This includes Joyrich, a hip, fashionable clothing

brand. LeSportsac’s yearlong collaboration with Los Angeles designhouse concludes with the partnership’s Winter 2011 collection.In this final collection you can still see the collaboration’s

signature oversized gold zippers and zipper pulls, gold logoplate, chains and coin charms, as well as the introduction ofthree new Joyrich designed prints. The design house’s tongue-in-cheek luxe style is also still evident

in its colorful play on the camouflage trend. The Candy Camo, however,steers away from the military and looks more like bright poppy abstractart with its hot pink, bright orange, turquoise and purple hues. And a collection with Joyrich is not complete without one of their quintessential

florals: Ambush Floral. This winter floral gives a distinct nod to the brand’s LosAngeles roots and includes sweet ‘90s style roses on a white backdrop withbright white trim. Smiling back at the large logo trend, Joyrich has also created a black and

white logo repeat, Joyfont, which lets everyone know that the bag is definitelya LeSportsac X Joyrich – a great print that exemplifies LeSportsac’s first yearlongcollaboration.The LeSportsac X Joyrich collection will be available online at LeSportsac.com

and at all LeSportsac flagship boutiques worldwide in November 2011. LeSportsacis also available at better department stores and select specialty stores. Mainlyknown for its stylish, travel-friendly nylon bags, LeSportsac also offers fashion-forward accessories.A LeSportsac spokesperson explains that the Joyrich collection has performed exceptionally

well worldwide. “We assume consumers started to prefer carrying showy young printsrather than just simple designs.”In other trend news for the Americas duty free market, “shiny solid colors are increasing

sales although matt solids were doing better before. (It’s) not really a new trend, but brightflorals have always received a high reputation,” says the spokesperson. Even though LeSportsac remains a New York-based brand, its popularity has reached

across the globe. In the Americas travel retail sector, Brazil and Uruguay are generatinga great amount of sales. Internationally, in the duty free channel, Korea pulls in themost sales.For the Americas duty free market,

the company is pinning its efforts ondeveloping a border duty free businessbetween Uruguay and Brazil, includingin cities such as Rivera, Chuy and RioBranco. Airports are also being tar-geted. “We are also very much lookingforward to growing our business inairports, as we are an internationalbrand and already have many storesin airports in other regions suchAsia,” says LeSportsac. c

66 THE AMERICAS DUTY FREE & TRAVEL RETAILING JUNE 2011

CLeSportsac’s collaboration with LA-based Joyrich results in a fun, colorful collection of handbags for Winter 2011 BY HIBAH NOOR

Feeling the joy

Savor Macanudo 1968The same impeccable Macanudo quality you’ve come to expect over the

past 40 years, now with a richer, darker taste. The smoke is rich and

cedary with a touch of caramel on the finish. Medium bodied and

balanced. This is Macanudo 1968, the evolution of a legend. For further

information on Macanudo 1968 and other General Cigar products please

email [email protected] or visit www.cigarworld.com

Rich, dark and unexpected.

©2011 General Cigar Co., Inc

Confectionery Report


The theme for this year’s ASUTILconference is a forbidding-sound-ing one – “Latin America: NeitherHell nor Paradise” – but the snap-shot of the confectionery market

that attendees will take away with them willbe decidedly more worldly than those wordsimply, and much more suggestive of life’ssimpler pleasures. The confectionery market’spotential is definitely positive as far as EricVermetten, Area Manager, Europe and Amer-icas for Perfetti Van Melle, is concerned.That’s why his company is paving the wayfor future growth in this part of the world.“We’ve been focusing on increasing the

number of POS worldwide,” Vermetten says,“and the Americas is one of the first regionswhere we have reached a reasonably tightdistribution network.” The company is wellestablished in North and South America,Vermetten says, and also has near-completedistribution in Central America, althoughwork remains to be done in the Caribbean.Perfetti will be providing more detailed infor-mation to the market at ASUTIL.“The Americas is performing really well

for us,” Vermetten says. Growth for the firsthalf of this year is an impressive 30% aheadof the figure for the first half of 2010 –interms of both volume and turnover. Thetravel retail focus, Vermetten says, continuesto be in the Mentos and Chupa Chups, bothof which rank high in the sugar confectionerysector. “All of our products are exclusive forthe travel retail market,” Vermetten says, “theMentos Jumboroll and Chupa Chups MegaChups being our icons.” The momentum has been beefed up with

the recent introduction of Chupa ChupsFlower Bouquet and Surprise Travel Pack,and Mentos Mini and Mentos Kidz, unveiledin the Americas at Orlando earlier this year.The Flower Bouquet features flowers withpersonal note cards and two Chupa Chups.

The Surprise Travel Pack contains 12 surprisegifts and four Chupa Chups, each with a sur-prise toy. Mentos Mini features 20 miniatureMentos rolls in strawberry, cola, lime andorange flavors, while the Mentos Kidz bagcontains 15 miniature boxes, and features agame on the back of the bag.The travel retail market is robust enough,

and for Perfetti Van Melle at least growth inthe last year has been strong enough, thatthe company has expanded its travel retailteam with the recent addition of LaurensKrijgsman as Area Manager for Asia. Confectionery has always had worldwide

appeal, says Giannicola Losacco, GeneralManager for Ferrero’s Travel Market division.“It makes a perfect gift and indulgence wher-ever you are in the world.” Losacco says LatinAmerica is leading the growth in demand,thanks in large measure to how well knownthe Kinder brand is in that part of the world.“Our premium Ferrero Collection and FerreroRocher and Rondnoir – from gift boxes downto small trio and 4-piece packs – are doingvery well, and Raffaello is also performingabove expectations as the coconut flavor iswell liked in the region,” Losacco says. TheTic Tac brand is strong throughout the Amer-icas and the newly launched Liberty by TicTac is enjoying good results.

Overall, Losacco says probably the biggestchange in the company’s approach to travelretail was the very establishment of the travelretail division two years ago. “That signalledthat the company had recognized the impor-tance of the channel,” Losacco says. Undoubt-edly there were some eyebrows raised aboutmaking such a move as the recession was atits worst, but the long-term approach seemsto have been amply justified since then.Jessica Guzzo, Marketing Manager for

Switzerland-based Goldkenn, says that theAmericas market is “still growing,” and thatthe overall trend in confectionery and foodis upward. “We are very pleased with ourresults for the current year,” she says. “Butthe Swiss franc is currently very high, whichcomplicates our export sales, and unfortu-nately for us this trend is likely to continue.” Goldkenn’s best seller worldwide is the

“Goldbar,” a perfect miniature replica of the12.5kg gold bars stored in Swiss bank vaults.Chocolate liqueurs are performing wellthroughout Greater Europe, especially inRussia, and Guzzo says that the 30th anniver-sary of the Goldbar is coming up, along witha complete revamp of the Chocolate ClubCollection – a new “sleek and premiumdesign” that will be launched at TFWA Cannes. “The travel retail market has really picked

As confectionery’s leadersgather at ASUTIL, signs arethat a strong market is onlygetting stronger

BY ANDREW BROOKS

Raffaello’s signaturecoconut flavor is a hitin Latin America

Ferrero display inAsuncion Airport

departures

The best gets better

Confectionery Report


up in the last two years, andalthough the Americas havebeen slower to recover fromrecession than, for example,Asia, there are now strong signsof growth in the US,” says Fer-rero’s Losacco. Several SouthAmerican countries, such asArgentina and Brazil, managedto avoid bearing the brunt ofthe downturn and are now see-ing strong growth in passengertraffic, with an accompanyinggrowth in demand for confectionery.Ferrero grew strongly in 2010, with travel

retail sales growing 30% year-over-year, animpressive achievement considering that theoverall travel retail confectionery marketgrew by 15%. In the Americas, sales boomedby an amazing 98%, Losacco says. Ferrero isa relative newcomer to travel retail – the divi-sion Losacco heads up was only establishedat the end of 2009 – but such figures are stillamazing in their own right.Demand for Ferrero Rocher and Kinder is

growing nicely in the Americas, Losacco says.“Our foothold there is less well established thanin Europe and Asia, so there’s plenty of oppor-tunity for the future.” Tic Tac has good potentialand is already strong on the domestic market,while Nutella has a “cult image” which it ishoped will augur well for the new Nutella 30gjars. In the Kinder range Fererro is rolling outthe new Kinder Friends pouch and the KinderHappy Hippo Chocobox. Ferrero Rocher, ofcourse, is well established in the luxury giftingniche: “they symbolize all that is good aboutpremium European chocolate, which appealsto the American psyche,” Losacco says.At ASUTIL, Losacco says that Ferrero will

be outlining a selection of innovative linesthat complement the range that will be pre-sented at Cannes, some of them exclusive totravel retail. The essence of the Ferrero strategy,Losacco explains, is to offer high-qualityproducts in a range of presentation stylestailored to the market, mixing things up andmaintaining buyer interest with occasionaloffers, in addition to keeping travel retaildistinct from the high street with offersexclusive to this channel. “On a regional basis we work

closely with the retailers in theAmericas, and we are open tonew distributors in theregion,” Losacco says. “Wefind that one-plus-one,GWP and other valueadded promotionswork well here.”

Guzzo says that Goldkenn focuses itsefforts on articulating portion sizes as the“supersize” trend is now a thing of the past.“So we developed exclusively our Mini Golds,five grams of an exquisite praline blendedwith the finest cocoa beans, delicate nougatinewith rich almond and hazelnuts.”As far as promotions are concerned, for

Perfetti Van Melle the accent continues to beon increasing visibility rather than pushingspecific promotions, Vermetten says. “Weknow that purchases of Mentos and ChupaChups are very high-impulse, and thereforestrong merchandising and display are crucialto our sales,” he says. “To this end, we arenow looking at the potential of till-pointsales programs, which we know to be anexcellent point for impulse purchase.”Chewing gum is very important for Perfetti

and will be increasingly important in the yearsto come. All of its chewing gum is sugarfree,although the brand does not consider this iscurrently a major selling point in travel retail.This may, of course, change in the future.Losacco says that response has been very

positive to the launch of Ferrero’s new sugar-free mouth freshener mints in Wildberriesand Coolmint flavors. Pairing them with TicTac gives the customer a bigger range ofchoices, he says. c

The recently introduced Mentos Mini pack leveragesthe brand’s strong visual presence

The wheeldisplay unitfor ChupaChups

Goldkenn’s180g MiniGolds pack

features 365gSwiss pralineswrapped in

gold foil

Goldkenn’s signatureGoldbar is a miniature

replica of the real 12.5kggold bars stored in Swissbank vaults. Each packcontains 30 individually-wrapped pralines. Packsare available in milk or

dark chocolate


Confiteca’sPOS displaysin travel retail

A colorfulselection ofTurin’s liqueurchocolateson display induty free

Confectionery News

Duty free is taking on a whole newmeaning for Turin Chocolates,as the Mexico-based confectionermakes its debut at ASUTIL, Latin America's premier duty-

free conference in Cancun this month."This is the first time we are presenting at

this conference, so our goal is to introduceour brands to the trade," says Ann MarieCavanaugh, National Sales Manager in theUS for Chocolates Turin, S.A. de C.V. Turinmanufactures premium chocolates under theBailey's, Kahlúa, Grand Marnier, Malibu andJose Cuervo brands.Meanwhile, Ecuador’s premier confectioner,

Confiteca Corporation, is taking its Latin Amer-ican expansion very seriously, if its lineup forASUTIL is any indication. Gonzalo Jose Chiri-boga, Confiteca’s Category Manager for Choco-lates, appears excited as he talks about the newproducts being presented at ASUTIL."We are going to introduce a new line of

chocolate liqueur and another line of chocolateand coffee pairings," he says. "Then there is adelicious line of hot chocolate powder and anew chocolate bar that we call Galapagos becauseit is mixed with Galapagos Island coffee nibs.We also offer chocolates covered with exoticoranges and many, many other products. "Both companies are focused on expansion.

Turin, for instance, in an effort to sell in regionswhere alcohol is either taboo or is a second-tier market, offers non-alcoholic/flavor-filledchocolates. This offering has attracted wider

audiences, as was indicated by the recent agree-ment with India-based Kreol Travel Retail,which becomes Turin’s official agent for theMiddle East and the Indian subcontinent.Turin, like other companies, has lived with

flat sales for the past couple of years thanks tothe worldwide recession, but certain segmentsare beginning to improve, one of them beingduty free. The company is currently workingwith American Caribbean Getaway of Fort Laud-erdale, Florida, to grow its duty free market."Even though we have been in an economic

recession, people still want to indulge in some-thing," says Cavanaugh. "Thankfully, chocolateis at the top of their list.” While gift-givingaccounts for a large portion of Turin’s listings,chocolates are also favored for impulse buyingand consumption.Confiteca’s impressive product line includes

premium 3.5oz chocolate bars, stand-up bagsin both 2.1oz and 4.23oz sizes, large 7ozcylinder tubes of chocolate, gift boxes in severaldifferent sizes, a reusable shaker jar filled withchocolates and a collectible tin bottle filledwith branded chocolates.Chiriboga says that Confiteca’s new bestseller

is the Coffee Kit, a bag of Galapagos Islandcoffee and nine chocolate bites from the differentprovinces of Ecuador. The main business ofRepública del Cacao – a division of GroupConfiteca founded five years ago – remainssouvenir gifting rather than personal use, hencethe importance of duty free shops and promi-nent tourist locations such as the Charles Dar-win Foundation on Galapagos Island.Chiriboga says this year’s ASUTIL is impor-

tant because República del Cacao is expandingto two Latin American countries, bringing itsglobal total to eight. c

Chocolates Turin debutsat ASUTIL: Confiteca tolaunch new products BY ANDREW BROOKS

In North America The Wild Geese Irish Whiskey Collection is sold under the ‘brand name’ of “The Wild Geese Irish Soldiers & Heroes”. The Wild Geese, The Wild Geese Rare Irish Whiskey, The Wild Geese Irish Soldiers & Heroes, The Wild Geese Soldiers & Heroes and Untamed are registered trademarks. Made under the authority of the trademark proprietor. © Avalon Group Inc. 2002 – 2011.

‘BEST IRISH WHISKEY’

WSWA 2010 / WWA 2011

www.thewildgeesecollection.com

WHIPPING UP A STORMThe Multi Award-Winning Irish Whiskey Collection

TAILORMADE FOR YOUR MARKET

www.protege-international.com After Hours and After Dark are registered trademarks.

TAILORMADE FOR YOUR MARKETAvailable for meetings atASUTIL, Cancun, MexicoJune, 22nd-25th

SEEKING DISTRIBUTORS CONTACT: IAN SMART, Director Business Development TEL: +44 (0) 8700 339 866 EMAIL: [email protected]

Made under the authority of the trade mark proprietor. © FenderTobacco Inc 2004 - 2011.

Company News: Brown-Forman

Montgomery Wilson, Brown-Forman’s Director ofAmericas Duty Free, dis-cusses the company’s focuson its premium brandsmoving into the second half

of the year. While more and more consumersare trading up as economies in the Americascontinue to improve, Wilson tells Americas DutyFree that the impetus for the renewed push onhigh-end brands such as Woodford Reserve,Herradura, Chambord and Chambord Vodkahas more to do with the intrinsic value of thebrands themselves and what they communicateto consumers in terms of versatility, luxuryappeal and tradition.

Americas Duty Free: What is Brown-Forman’score focus in the Americas at the moment?Montgomery Wilson: Key areas of concen-tration in terms of brands are WoodfordReserve, Herradura Tequila, Chambord andChambord Vodka. Woodford Reserve is alreadya mainstay in the whiskey section of mostNorth American shops and is increasing itstravel retail distribution around the world.Herradura is expanding its presence beyondthe traditional tequila market of Mexico, whichis also encouraging. Finally, Chambord isexpanding outside of North America intoNorthern Europe and select Asia Pacific mar-kets, while Chambord Vodka is expandinginto North American duty free.

ADF: In terms of promotional activity forthe brands, is there anything in the pipelinethat you can tell us about?MW: We are continuing to focus on permanentdisplays and value-added promotions for ourcore brands. Merchandising is a key part ofour marketing strategy and therefore we areinvesting in permanent displays that help trav-elers find their favorite brands and then tellthem more about these brands and encourageexploration within the brand families. We arepromoting during core promotion periodswith added-value packs and impactful samplingactivity throughout Latin America.

ADF: Are there any new listings to speak of?MW: Jack Daniel’s Scenes from Lynchburg,Gentleman Jack and Jack Daniel’s Single Barrelcontinue to be a primary focus for new listingopportunities, which allows us to trade con-sumers up from our Jack Daniel’s Black Labelto the rest of the Jack Daniel’s family. Thebillboard effect this creates on shelf is extremelyimpactful and alluring to the internationalconsumer. Our customers enjoy the incre-mental register rings as well.Woodford Reserve Bourbon is also becominga staple in most airport stores as it perfectlyfits what travel retail consumers are lookingfor—something unique, gift-worthy and pre-mium. Fortunately, our Herradura Tequilaand Chambord family of brands meet thatconsumer proposition as well!

ADF: Is the improving economic situationand the fact that consumers are now morewilling to trade up a contributing factor forthis renewed focus on your premium brands?MW: The time is right because the brands areright. Each of these brands is a leader in itscategory: Woodford Reserve brings traditionalbourbon to a new level in a stunning package;Herradura is one of the oldest and most pop-ular tequilas and is finally enjoying the acclaimoutside of Mexico that it deserves; and Cham-bord is an iconic liquor found in any premiumbar in the world. Consumers are now learningthat it should be part of their bar at home.Finally, Chambord Vodka brings the Chambordexperience and taste profile to the world’slargest spirits category. So, simply, it is timefor these brands to show themselves off onthe world stage.

ADF: Regionally, what are some areas offocus for Brown-Forman in the Americas?MW: Latin America is a country by countryapproach. This diverse marketplace mixes numer-ous cultures, languages and regulations thatrequire us to analyze each market individually. We continue to expand our operations in

Mexico, taking advantage of the Herraduraoperations purchased by Brown-Forman afew years ago. Additionally, Brown-Forman’snew distribution operation in Brazil intendsto focus some of its efforts on the travel retailopportunities available in the southern coneof South America.

ADF: Are there any other developments thatour readers should know about? MW: We are pleased to announce two new hiresfor the Americas region effective March 2011.Pierre-Hubert Plessis has been hired as DutyFree Territory Manager for the United States,Mexico and Caribbean. Additionally, AlexandreLeonardo has been hired as Duty Free TerritoryManager for Brazil, Paraguay and Uruguay. c

Brown-Forman continues to expand its operations in Mexico, takingadvantage of the Herradura operations purchased a few years ago

Chambord is expandingoutside of North America intoNorthern Europe and selectAsia Pacific markets, while

Chambord Vodka is expandinginto North American duty free


Brown-Forman renews its focus on premium brandsWoodford Reserve, Herradura, Chambord andChambord Vodka in the Americas BY RYAN WHITE

IT’S NOT SCOTCH.IT’S NOT BOURBON.

It s Jack.

Something for everyone

Rum Report


Brugal has already provenboth itself and the popularityof premium rums in generalas the number one rum inthe Caribbean

The reasons that consumers purchasespirits run the gamut from wantingto create simple cocktails at home todesiring a super premium, display-

worthy bottle to enjoy neat on special occasions.Luckily for Appleton Estate, the company’sportfolio of fine rums ensures that there isan expression available for essentially everypreference.“Appleton Estate Jamaica Rum is uniquely

positioned as one of the world’s truly historicalcohol brands,” says Peter Hottmann, Apple-ton Estate’s Regional Sales and MarketingManager, NAFTA Region. “Our rum is theexceptional start of many classic cocktailssuch as the Mai Tai. As one of the most versatilespirits on earth, our rum can be enjoyed neat,on the rocks or in almost any mixed beverageimaginable.”For those who prefer an aged rum,

Hottmann notes that Appleton Estate 21 Year

Old is exemplary of the highest standards inrum making. The expression, which wasrecently given a new, bespoke look, is a once-a-year limited release that is sold on an allo-cation basis. Much like a super premiumwhisky, the age statement on 21 Year Oldmeans that the youngest rum in the bottle isaged for 21 years. Indeed, aficionados whopurchase the spirit are drinking a blend ofaged rums, some of which may have maturedin barrels for 30 years or more. “Connoisseurs who have a deep under-

standing of what sets apart certain fine, agedrums represent a growing segment of the base,and for this reason Appleton Estate 21 YearOld fits the bill perfectly,” says Hottmann.“However, the very essence of our brand isabout being accessible to every person whoresponsibly enjoys fine rum—whether thatbe our many valued consumers who love theirAppleton Estate V/X or Reserve mixed with

cola or juice, or whether that be our growinglist of fans who prefer our rare, aged rumsserved neat, we are equally happy to accom-modate everyone.”

A unique proposition

Brugal Extra Viejo Reserva and Brugal Añejo Reserva—distributedby Rémy Cointreau Travel Retail Americas on behalf of The EdringtonGroup—made their debut at IAADFS 2011 in Orlando. AmericasDuty Free caught up with André de Almeida, Edrington Group’s

Area Director – Americas Duty Free and UK & Ireland Domestic, to seewhat operators think of the premium aged rums.“The reaction to Brugal has been fantastic, with the trade really embracing

the brand,” he says. “All the clients to whom we have introduced the producthave been very welcoming and we’re confident that it’s going to be a successin travel retail. One of the key messages that we’ve heard from operatorshad to do with the high-end side of the business. There is the appetite forhigh-end whiskies and I think there is an opportunity to sell premium rumin the Americas as well.”Indeed, Brugal has already proven both itself and the popularity of

premium rums in general. It is the number one rum in the Caribbean,inarguably a place where consumers certainly know an authentic rumwhen they see it, and it is the number three rum in the world and growing. “History and tradition are also important with any premium product,

and the Brugal family has been produced since 1888,” explains de Almeida.“It is now being produced by the fifth generation of Maestro Roneros, ourMaster Blenders. Furthermore, it has a distinctive, lighter style with drierwoody notes that come through whether drunk neat or mixed. Finally,Brugal is produced under a very tightly controlled distillation process toguarantee a clean spirit with low levels of congeners. All of this combines tomake Brugal a very unique proposition in the rum category in travel retail.”

Appleton Estate’s rum portfolio offers a wide variety forboth connoisseurs and those who prefer to mix their rumwith cola or juice (Pictured: Appleton Estate 21 Year Old)

Americas Duty Free talks to five rum brands about the huge varietythat the category has to offer both connoisseurs and novices alike

BY RYAN WHITE

Balancing innovation and tradition

One need only look as far as Bacardi’s rumportfolio to get an idea of the variety thatthe category as a whole has to offer. Fromthe classic Bacardi Superior and its flavored

variations to Bacardi 8, Bacardi Gold and a numberof other expressions, the company’s selection ofrums is truly beyond compare.“We pride ourselves on the exceptional quality

of all our rums, and that applies most of all toBacardi 8 Year Old Rum, the pinnacle of premiumrums,” says Vinay Golikeri, Marketing Directorfor Bacardi’s Global Travel Retail Division. “Thequality of Bacardi 8 says everything about ourrum credentials, our rum-making expertise andour rum-making heritage.”Next year Bacardi will be celebrating its 150th

anniversary, and Bacardi 8’s roots go all the way backto 1862, when Don Facundo Bacardí Massó createdan elegant sipping rum that remained the sole preserveof the Bacardi family until its release in 1998.For those rum lovers that are looking for something

different, Bacardi is releasing Arctic Grape flavoredrum. The offering is made from Arctic berries,also known as Lingon berries, which are nativeto the Arctic Tundra throughout the North-ern Hemisphere from Eurasia to NorthAmerica. For Golikeri and Bacardi, it’sabout continuing to stay fresh in the formof new products while at the same timemaintaining the tradition that DonFacundo pioneered so many years ago. “We pride ourselves on always inno-

vating,” Golikeri explains. “Another exam-ple is the recent, incredible success of theBacardi Mojito RTS. We’re now followingup that success with the launch of twonew RTS products, Bacardi Pina Coladaand Bacardi Strawberry Daiquiri. Indeed,it is still possible to break new ground intravel retail’s rum category.”

Extending the franchise Keeping it exotic

Pernod Ricard’s Malibu Rum is entering the popular full-proofspirit segment with the launch of new Malibu Black, a 70 proofspirit with a hint of Malibu’s signature coconut flavor. The newexpression is launching now and gaining distribution nationally.

“The combination of the bold Caribbean flavor andthe subtle hints of coconut create a smooth and lingeringfinish that is great served straight up or enjoyed in arefreshing cocktail,” says Pernod Ricard. In taste tests, consumers scored Malibu Black high on

taste appeal. Those sampled said they consider the productto have “just right” levels of coconut and find Malibu Blackand Cola to be a refreshing beverage option.“Malibu Black extends the Malibu franchise into the

full-proof spirit category allowing the brand to reacha new audience in new occasions,” added PernodRicard. “Malibu Black is the perfect choice for youngmen who like to socialize, have fun and frequent amore high-energy style account than the traditionalMalibu consumer. Malibu Black is also a greatchoice for current Malibu drinkers looking fora new higher proof option for those higherenergy occasions.“70 proof and higher proof products main-

tain a commanding share of the total rum cat-egory and are driving category performance,”Pernod Ricard explains. “Now is the time toextend the Malibu franchise into this dynamicand growing segment. Our consumers havebeen asking for a higher proof Malibu andMalibu Black delivers.”

“Mount Gay is the rum that invented rum!” saysRémy Cointreau’s Regional Director of Amer-icas Duty Free Francois Van Aal. While quitea bold statement, it happens to be true

in Mount Gay’s case. Van Aal notes that MountGay is the oldest rum brand in the world, havingbeen established in 1703 in Barbados. It is madefrom molasses using water that is naturally filteredthrough the coral limestone of the island. Therum is distilled in pot and column stills and agedin charred Kentucky oak barrels, making MountGay a highly awarded and sought after brand.“Rum is often linked to exotic islands and

immediately brings to mind the notion of vacationsand a relaxed mindset,” says Van Aal. “It’s alsosmooth and easy to drink neat. Finally, rum isextremely versatile in a cocktail. All of theseimportant traits apply to Mount Gay.”

This year Mount Gay will have thesupport of an investment plan that targetsmore visibility, tastings and promotions.The brand has long been associatedwith sailing, and Rémy Cointreau willbe giving away nautical bags as GWPsin selected travel retail locations, as wellas running a special promotion targetedat all sea lovers.“Rum has a very broad target audience

thanks to the depth of offerings and prices,” Van Aal says. “Rumis slowly becoming a category for connoisseurs, but it will stilltake time before the rum category’s core business will comefrom high-end propositions. Either way, given its tradition, ver-satility and exoticism, Mount Gay is well positioned to continuegrowing in popularity as the rum category evolves.” c

Malibu Rum has released Malibu Black, a70 proof spirit with a hint ofMalibu’s signature coconut flavor;the new expression is launchingnow and gaining distributionthroughout the Americas


Mount Gay is the oldestrum brand in the world,having been established in

1703 in Barbados

Bacardi 8’s roots go all the way back to 1862, when Don Facundo Bacardí Massó created anelegant sipping rum that was the sole preserve of the Bacardi family until its release in 1998

Johnnie Walker Double Black hasmade a substantial impact on theliquor category in travel retail,reports brandowner Diageo. Gen-eration Research data reveals that,

from a standing start, by the final quarter of2010 (latest available data), Johnnie WalkerDouble Black had already established itselfas the number eight brand by value. In doingso it has already overtaken established names

such as Absolut Blue Label, Jack Daniel’s andFamous Grouse.From Diageo’s point of view, while Johnnie

Walker Black Label is a massive brand inGTME, Johnnie Walker Double Black hasalready grown to about one third the size ofits 102 year-old cousin without adverselyimpacting sales. Johnnie Walker DoubleBlack’s achievements highlight the holisticstrengths of the product, says Diageo, begin-ning with its conception through to the liquidand packaging, and finally on to the in-storeand on-concourse executions.Steve White, recently appointed Marketing

Director for GTME and former Marketingand Innovation Director for Diageo’s JohnnieWalker Global Brand Team, explains: “JohnnieWalker Double Black was, from the outset,an extraordinarily bold innovation, takingas its starting point the ‘crown jewel’ in Dia-geo’s travel retail portfolio—Johnnie WalkerBlack Label.“It has been exclusive to the travel retail

channel for the last twelve months and though,going forward, we are planning to allow asmall number of domestic markets to havethe product for limited periods only, travelretail remains the principal channel for JohnnieWalker Double Black,” he adds.

Jane Ewing, Managing Director atDiageo GTME, says: “We think this hasbeen one of the most extraordinary liquorproducts launched in travel retail formany years. Its success is built on thefact that each stage of its journey—fromconsumer insight and product designthrough to a partnership approach withour retail customers and in-store exe-cution—was addressed meticulously.

“Unprecedented levels of consumer insightidentified the needs of the consumer and theopportunity for Johnnie Walker DoubleBlack,” Ewing continues. “With many travelerssaying they are convinced that travel retailhas nothing new to surprise them, it is onlythrough the development and shared pro-motion of products of the caliber of JohnnieWalker Double Black that we can persuadethem to think differently.”Diageo says it believes that Johnnie Walker

Double Black represents the most significantsuccess ever achieved in travel retail througha premium product specifically developedin response to consumer insight. “This successalso illustrates the effectiveness of trinity-style approaches where suppliers, retailersand airports share in the strategy of drivingnew excitement and engagement in the chan-nel,” the company notes.For Diageo, the strength of Johnnie Walker

Black Label offered a powerful opportunity forthe development of a major brand extension.However, the company notes that such anopportunity had to be achieved not only throughthe development of a truly exceptional liquidbut also with the character and credibility thatdemonstrated the house of Walker’s continuingspirit of innovation and progress. As such, it

was vital to Diageo that the new variant expressed“its own unique personality while echoing theauthenticity, quality and brand integrity of itsmembership of the house of Walker.”Diageo’s extensive insight program played

a major role in the success, as Sara Springer,GTME Innovation Director explains: “JohnnieWalker Double Black actually has its originsin the minds of our target consumers. Byunderstanding their deep appreciation of theJohnnie Walker brand, we were able to identifythe DNA of a product extension that wouldfurther expand on their reverence. The MasterBlender used this to guide his creation of theflavors and attributes of the liquid itself, andthis commitment to perfection was main-tained in the contemporary design of thebottle and the quality of the packaging.”“Johnnie Walker Double Black demon-

strates Diageo GTME’s continuing commit-ment to growing the category through inno-vation, investment and raising the shopperexperience,” Diageo says. “With JohnnieWalker Double Black, the combination ofinsight, product quality and shared commit-ment with our partners has given travel retaila significant boost and further demonstratedthe channel’s potential to drive a strongerperformance.” c


Diageo believes that Double Black represents the mostsignificant success ever achieved in travel retail througha premium product specifically developed in responseto consumer insight

“We think this has been oneof the most extraordinaryliquor products launched intravel retail for many years.”Jane Ewing, Managing Director, Diageo GTME

Company News: Diageo

A year of accomplishments

Diageo celebrates the success of Johnnie Walker Double Black one year after its introduction as a travel retail exclusive BY RYAN WHITE

Liquor NewsFreixenet continuesevolving while remainingtrue to its originsThe only thing that Freixenet cannot promise you in personat this year's ASUTIL trade show and conference is Shakira,the face of Spain's bubbly and the Freixenet brand ambas-sador. Other than that, expect an elaborate array of Freix-enet’s constantly expanding list of sparkling and stillwines at South America's largest duty free conference. While the glamorous and gorgeous “loca” singer is

important to Freixenet, as witnessed by the sexyChristmas Champagne ad she shot for Freixenet lastyear, newer markets—especially Latin Americanduty free—are the company’s new building blocks. "Duty free for us is important," says Gonzalo

Lopez de Ceballos, Travel Retail Director for Freix-enet. "We are expanding more and more in SouthAmerica. Brazil is growing quite fast, as is therest of South America."The duty free sector in Europe is very expe-

rienced, with investments all over Europe andbeautiful shops everywhere,” he says. "We don'tsee the same in the US and North America yet.Of course that will arrive, but it will take a littlemore time."De Ceballos notes that visitors to this year's

ASUTIL event will see the new face of Freixenet.Recently, the company began a completemakeover of its product line, pointing out to thetrade media that "great brands never stand still."

"We are changing many things—special bottles, specialpresentations—the same as our company, which changesconstantly,” de Ceballos says. “In 2000, 90% of our productwas sparkling wine and 10% still wine. Today 60% is sparklingwine and 40% still wine from seven different countries. In10 years many things have changed in our company."

One can see the truth of this in Freixenet’s sales andrevenue. In 2010, Freixenet sold about 200 millionbottles of sparkling wines, champagnes and still wines,the latter from 18 wineries in seven countries (Spain,France, United States, Mexico, Argentina, Chile andAustralia). Total revenue was about US$500 million.

"In Latin America alone we sold two millionbottles, which is a very good number," says deCeballos, pointing out that the company produces400 different wines, sparkling wines and cham-pagnes. "We continue to be one of the preferredbrands."Freixenet remains a private family controlled

company, still run by the Ferrer children and grand-children and still putting down roots in the com-munities where it does business, whether that’s athome in Spain or overseas. Even the Shakira Christ-mas commercial was a good case in point: half amillion dollars of the US$670,000 paid to the starwent towards building a school in Haiti and anotherone in Colombia.

In 2010, Freixenet sold 2million bottles of sparklingwines, champagnes and stillwines in Latin America alone


Industry & Retailer News

THE AMERICAS DUTY FREE & TRAVEL RETAILING JUNE 2011

Russian Standard Vodka ranked 8th most powerful vodka brand in the worldRussian Standard Vodka, the number one premium vodka in Russia,was recently ranked as the 8th most powerful vodka brand in the world,surpassing Ketel One, Wyborowa and Three Olives, according to IntangibleBusiness’s 2011 Power 100 ranking. Amongst the Top 100 spirit brands,Russian Standard Vodka was ranked 44th, a substantial leap from thebrand’s 54th place standing last year. In addition, the brand’s significantgrowth earned a spot amongst only four brands to receive the pres-tigious Star Performance Award for exceptional performance. This is the second year that the brand has been recognized by

the Power 100 ranking, a leading source for industry trends andstatistics. Russian Standard Vodka first entered the ranking in2010 for its tremendous, double�digit global sales growth. Thebrand was also acknowledged in 2010 as a Star Performer andthe second highest new entrant for its continued upward trajectoryand worldwide success. “We are very proud of the remarkable growth in 2010 and our

achievements in 2011,” said Jonathan Stordy, CEO of RussianStandard International. “Our continued climb among the top 100

spirit brands is an important recognition of oursuccess and is reflective upon Russian Standard’scontinued commitment to bringing Russia’snumber one premium vodka to the world.” Intangible Business, a consultancy that specializes

in gauging brand value, researched nearly 10,000 spiritand wine brands across the globe to produce ThePower 100. The brands are rated according to theirmarket share, future growth, premium price position,awareness, relevance, heritage and brand perception.

Russian Standard Vodka is the global leader inauthentic Russian premium vodka. The RussianStandard vodka portfolio dominates the pre-mium segment in Russia with a 50% marketshare and sales of over 2.5 million cases in2010 in Russia and more than 75 exportmarkets across Europe, the US and Asia.Roustam Tariko, the founder of RussianStandard, introduced the flagship productin 1998 as the first authentic Russian premiumvodka. Russian Standard vodkas are madewith only the finest Russian ingredients, con-forming to the formula for vodka establishedin 1894 by famed Russian scientist DmitriMendeleev for Russia’s Czars. Two yearsafter launch, sales of Russian Standard sur-passed all imported premium vodkas onthe Russian market, leading to broad inter-national expansion and the launch of RussianStandard Platinum in 2001, IMPERIA Vodka,the company's luxury brand, in 2004, andRussian Standard Gold in 2008.

Russian Standard is made with only the finest Russianingredients, conforming to the formula established in1894 by famed Russian scientist Dmitri Mendeleev

Bottega sparkles in the AmericasIn a recent conversation with Americas DutyFree, Sandro Bottega, President of DistilleriaBottega, confirmed that Bottega Gold will bere-listed onboard United Airlines from October.Furthermore, Prosecco Bottega DOC is alsobeing served aboard US Airways in envoy class.

“We’re seeing our best successes in theAmericas coming from inflight sales,” saysBottega. “In fact, our products are sold onmost airlines. Also, cruise lines and bordershops are very important to our business,and sales in these locations are doingextremely well indeed.”

Bottega notes that on the ground,tastings are always the best way ofcommunicating the many virtues ofthe products. However, as tastingsaren’t permitted in every location, Dis-tilleria Bottega is currently consideringemploying a more avant-gardeapproach by installing scale replicasof the distillery for display in stores orincorporating a lemon tree in conjunctionwith a price-off mechanism to promotethe company’s Limoncino.“At the moment sales are up 25%

over last year in the Americas,” Bottegasays. “We’re very happy with our performancein Brazil, Canada, the Caribbean and Argentinaspecifically. Nonetheless, I feel that creativityin regard to promotional activities is the wayforward for us to continue growing sales in theAmericas throughout the rest of the year.”

it was recentlyconfirmedthat BottegaGold will bere-listedonboardUnited Airlinesstarting inOctober

Liquor News


William Grant & Sons continues to sharpen its regional focus in Latin America

Protégé International prepares to take onLatin America with new premium rum

The Wild Geese Irish Soldiers and Heroes Irish Whiskey Collection recently won Best Irish Whisky at the World ofWhisky Awards; Protégé International will be releasing a rum expression under The Wild Geese umbrella in Q3

The Hendrick’s Tea Time set will make a triumphant return thisyear to Latin American travel retail after great success last year

Protégé International has seen great success to datein many regions of the world with The Wild Geese IrishSoldiers and Heroes Irish Whiskey Collection, whichrecently won Best Irish Whisky at the World of WhiskyAwards. Andre Levy, Chairman of Protégé International,tells Americas Duty Free that in addition to the criticalacclaim that has been heaped upon the collectionsince its creation, promotional activity underpinned bytastings has resulted in very encouraging results instore as well.Given the Collection’s success both with critics and

consumers, Protégé is now setting its sights on con-quering the burgeoning Latin American duty free market,an area of the world that the company previously hadn’ttargeted. “It was never about being in as many marketsas we could as quickly as we could,” Levy explains.“We wanted to get it right to ensure that the growthwas sustainable.”

Protégé is currently developing a line extension thatincludes a premium rum as well as VSOP and XOcognacs. According to Levy, the three spirits will all fallunder the already well established umbrella of The WildGeese.“The rum is being developed for the Americas specif-

ically, and we expect it to do very well,” explains Levy.“What we’re trying to do is build a platform of premiumand super premium products without limiting ourselvesto one specific subcategory. People who know TheWild Geese Irish Soldiers and Heroes Irish WhiskeyCollection understand that the quality of the liquid isuncompromising, and we see this perception of qualitycarrying over to the rum and cognac offerings.”Levy will attend this year’s ASUTIL conference to

discuss The Wild Geese’s new rum expression, whichshould be launched in Q3 of this year, as well ProtégéInternational’s entire portfolio of spirit and cigarette brands.

As a result of William Grant & Sons’ increasing regional focus in travel retail, thecompany has lately seen some important successes in Latin America and theCaribbean. Americas Duty Free recently spoke to Jose Castellvi, William Grant’sRegional Director for Latin America Travel Retail, the Caribbean and Cruise Lines,about the progress the company has made this year in the region and what travelingconsumers can expect to see from the core range—Grant’s, Glenfiddich, The Balvenieand Hendrick’s Gin—in the months to come in travel retail.In terms of sales, Castellvi asserts that the malts, Glenfiddich and The Balvenie,

are growing. “Malts are a relatively small percentage of total whiskey sales in LatinAmerica, but by percentage its one of the fastest-growing categories,” he says. “Alsogrowing from a small base after being released in Latam about a year and a half agois Hendrick’s, which is actually the top-selling super premium gin in the region.”Of course, given strong passenger numbers throughout Latin America, travel retail

is the perfect shop window for William Grant & Sons to target not only Latin Americanstraveling within the region, but also a large number of international travelers. Castellvicites Brazil, Argentina, Uruguay and Chile as strong markets for the company, withCentral America and the Caribbean also performing well.“In Latin America we’ve seen about a 30% increase in business over last year,” he

explains. “Again, this is from a smaller base, but it is very encouraging. It’s also importantto point out that William Grant & Sons’ strategy isn’t to pursue volume, but rather tomake sure that we are in all the key airport locations in the region. Once there, we targetvalue through GWP promotions as opposed to a lot of discount offers.”Travelers in Latin America can expect the Hendrick’s Tea Time set to make a tri-

umphant return this year after great success last year. Furthermore, trolley bags forGrant’s and GWPs that are “in line with the premium nature of The Balvenie” willalso be available in selected airports in the region. “Recognition of our brands in Latam travel retail has increased significantly over

the last couple of years,” says Castellvi. “A perfect example of this is the fact thatmany operators are now listing more premium expressions of Glenfiddich such as21 and 30 year old after seeing the success of our core Glenfiddich expressions—12, 15 and 18 year old. With a clearly defined strategy for all of the brands, we’relooking forward to continuing this upward trend in the months and years to come.”

White Gold vodkareleases Black EditionWhite Gold is one of the largest alcoholic beverage com-panies in Russia, founded in 2002 but with roots in thespirits industry since 1901. The company was namedas a tribute to its most popular brand, White Gold vodka,a spirit that is well known in many countries around theworld due to its uncompromising quality and strong tieswith tradition. In fact, White Gold has won accoladesin recent years from a number of esteemed organ-izations, including the IWSC. Duty free operatorshave now taken note of the company, and WhiteGold currently has brands listed with Gebr Heine-mann, Dufry and Aer Rianta. Given the popularity of White Gold vodka in

both domestic and duty free markets from Northand Latin America to Europe and Asia, the com-pany has released a new variant called WhiteGold Black Edition. The limited edition spiritcomes in a sleek black bottle and is triple-filteredin black coal and a silver ion filter for crystalclarity and a pleasant palate. The variant isdesigned to appeal to trendy clubgoers, with adesign that pays tribute to the traditional cuesof the original spirit while communicating a senseof modernity and mystery. “This year, White Gold will continue its strategy

of expanding the business through organicgrowth,” said a spokesperson from the company.“Sales have dramatically increased year by yearand our continued focus will be on exportingour main brands: White Gold, White Gold BlackEdition, Russian Gold and Gzheka.”

Given the popularity of White Gold vodka in both domesticand duty free markets, the White Gold company has

released a new variant called White Gold Black Edition

Vincor releases 2007vintage of Inniskillin Gold IcewineIn a recent conversation with Americas Duty Free,

Amanda Dolotowicz, Business Development

Manager at Vincor Canada, confirmed that the

company is set to release a 2007 vintage of its

award-winning Inniskillin Gold Icewine in the

second half of 2011. The launch will be world-

wide, but in addition to Asia, Europe and the

Middle East, Vincor has its sights on the strong

Latin American market.

“We’re very well positioned in Asia and

Europe,” says Dolotowicz. “Furthermore, we’re

pleased with our presence in the Middle East.

We’re ready to set our sights on South America

with a specific focus on Brazil.”

Although the strength of Brazil’s economy

makes it the lynchpin in many suppliers’ strategies

in South America, Dolotowicz notes that the

resilience of South America in general means

that there are infinite possibilities throughout

the region. Vincor feels that Inniskillin’s unique

positioning within the wine category gives it a

distinct advantage over the competition.

“Although we’re competing in a wine market,

there’s really nothing like Inniskillin,” she says.

“We’re confident that our recognition as a pro-

ducer of a unique premium product like Icewine

will make for a lot of opportunities in the region.

In addition, we’re expecting the extra buzz cre-

ated by the launch of the 2007 vintage of

Inniskillin Gold Icewine to be the catalyst for

increased exposure in the very important South

American duty free market.”

The newly released 2007

vintage of InniskillinGold Icewine

Spurred on by thesuccess of PatrónReposado, Silver

and Añejo(pictured), Patrón’ssales have grown12% year to datein Latin America Patrón Spirits International has announced

that it continues to grow sales in Latin Americaand across the globe. The company reportsthat year to date, total business is up 12%in domestic and duty free markets in Latam.The company’s biggest success story inthe region this year is Patrón XO Cafe,which is enjoying a year-to-date salesincrease of 76%. The brand is a uniqueultra-premium coffee liqueur made withPatrón Silver tequila that has beensteadily gaining traction over the lastyear in both local and travel retail mar-kets the world over. In duty free in Latin America specif-

Patrón continues toseize opportunities

in Latin America

Liquor News



MONARQ thrives in the Americas with numerous new distribution agreements

ically, Patrón is continuing to see positiveresults. For example, across its award-winning portfolio, Patrón is enjoying ayear-to-date increase in sales of 68% atAldeasa Cancun.“Our brands are fairly well developed in

the Caribbean and in Latin American dutyfree, but we still have considerable growthopportunities in several domestic marketsin the region,” says Joe Arellano, Patrón’sVice President for Latin America and TravelRetail. “The good news is that our successand acceptance in duty free is helping uspenetrate into many of those untappeddomestic markets. Throughout the regionand around the world, we're focused onexpanding our portfolio offerings and increas-ing local partner capabilities with all of ourdomestic and duty free partners.”Indeed, Patrón is well aware that domes-

tic and duty free channels reinforce oneanother. Arellano uses Brazil as an example,noting that Dufry Brasil is well poised forincreased sales of Patrón’s spirits oncethe supplier opens up the Brazilian domes-tic market. In turn, Patrón’s domestic part-ners will no doubt benefit by the strongsuccess that Dufry has already achievedin raising awareness and preference forPatrón’s portfolio. “Duty free and domestic markets may

operate independently, but the relationshipbetween the two benefits all,” Arellanoexplains. “Just as our exposure is increasingdue to the interplay between markets, ourentire portfolio of ultra premium brands,which includes Pyrat Rum and UltimatVodka, is getting a lot more attention dueto the success of Patrón Silver, Reposado,Añejo and Platinum.”

MONARQ continues to take on new clients withthe addition of a number of premium brands toits portfolio. In a recent conversation with Robertde Monchy, Managing Director of MONARQ, Amer-icas Duty Free learned that Crystal Head Vodka,the entire CEDC portfolio, which includes ZubrowkaBison Grass Vodka and Green Mark Vodka, andBranca International’s portfolio are the latest addi-tions to the distributor’s brand base.“Crystal Head was one of our star performers

during this year’s IAADFS show in Orlando andMONARQ will be distributing the brand in LatinAmerica and the Caribbean in the domestic andduty free markets,” says de Monchy. “It’s a trulyunique proposition. The product itself and thestriking packaging set the brand apart from thepack. Nearly one million bottles of Crystal Headwere sold in 2010 in the US.”Also far from ordinary are Zubrowka, the original

bison grass vodka, and Green Mark, Russia’snumber one selling vodka. MONARQ will be dis-tributing the brands domestically and in duty freein Latin America and the Caribbean, as well as inUS duty free. As mentioned, MONARQ has alsosecured a deal with Branca International, whosemost famous brand is Italian bitter Fernet Branca,for duty free distribution in the Caribbean, LatinAmerica and the US.“In addition to these new partnerships, we con-

tinue securing new listings for our existing portfolio,”notes de Monchy. “Cachaca 51 and La Fée absinthehave been listed with Dufry Americas and MolinariSambuca, the number one sambuca worldwide,

is now at London Supply. Also, a number ofbrands have been listed with Shopping China,such as Heineken, Molinari and La Fée absinthe.”In addition to the Heineken listings, MONARQ

has started to distribute Heineken through RTDInternational’s duty free stores in CentralAmerica and Venezuela. Currently cus-tomized furniture is being installed intwo of the operator’s flagship stores.As if the above developments weren’tenough, MONARQ is also working ona number of new duty free projectsalong the Uruguay-Brazil border.“Although our portfolio is rounding

out nicely, we remain very selective inthe brands we take on,” says de Monchy.“We are approached by suppliers on aweekly basis, sometimes even more,but we only work with brands that areleaders in their category or which aretruly unique.“At the same time, we’re continuously

growing our organization and hiring tal-ented staff, the latest example being anew trade marketer, which is a new posi-tion at MONARQ,” de Monchy concludes.“I’m looking forward to some great dis-cussions at this year’s ASUTIL conferenceand to seeing all our Latin American clientsand friends.”

CEDC’s Zubrowka Vodka (known in the Americas as ZU)and Crystal Head Vodka are just two of the many newbrands that MONARQ is distributing in selected markets

Cigar & Spirits Report


he pastime of enjoying premium, handcrafted cigars with finespirits—particularly brown spirits like whisky, cognac, rum andbourbon—goes hand in hand. While enjoying a high-end cigaror spirit on its own is certainly a pleasurable experience, pairingthe two together brings out complexities and subtle nuances

that can make a relaxing smoking interlude that much more enjoyable.Americas Duty Free recently asked Habanos, General Cigar and Ted’sCigars their opinions on the best way to make a great experience thatmuch better by combining the best of both worlds.

Among the numerous possible pairings for the over 250Habanos from which consumers may choose is Behike

BHK 56 and Havana Club Selección de Maestros

Two of a kindAmericas Duty Free discusses the art of bringing out the best ofboth worlds when pairing cigars and spirits with three of theindustry’s most progressive cigar companies BY RYAN WHITE

A world of choiceHabanos certainly knows a thing or twoabout pairing its cigars with fine spirits.From cognac and scotch whisky to tequilaand brandy, spirits play a big role in theHabanos Festival every year. Given thatthere are more than 250 Habanos to choosefrom, the company even promotes pairingswith tea, chocolate and other foods. Infact, the annual Habanosommelier inter-national contest is dedicated to findingthe best matches between Habanos cigarsand fine products throughout the world. Every year since 2002, Habanos has

staged a global contest for Habanosom-meliers wherein the winners of countlessregional contests all over the world meetin Havana during the Habanos Festival todecide who will be the world championfor the year. Contestants must study theway in which tobacco is grown and howcigars are made in Cuba. They must alsobe familiar with every size in the leadingHabanos brands and be aware of all theirdifferent flavors. Each is required to presenta personal recommendation for an idealcombination of a particular Habano witha specific drink. The recommendation isthen assessed on the preparation and serviceof both products.“Habanosommeliers are really broadening the

horizons of the many ways to enhance the enjoy-ment of Habanos in conjunction with other productsof similar quality, heritage and tradition,” saysGonzalo Fernández de Navarrete, MarketingDeputy Manager at Habanos. “Of course, at timesa consumer may prefer to concentrate on theessential flavors and aromas of a Habano alone,but we actively promote matching a cigar’s flavors

with spirits like malt whiskies, fine cognacsor vintage ports. One of my favorite pairingsis the Cohiba Behike BHK 56 and HavanaClub Selección de Maestros.”Indeed, the list of spirits with which

Habanos have been associated since 2000is long. In addition to more traditional pairings,the wine category—including ports, cham-pagnes and Sherries, as well as red andwhite wines from all over the world—hasalso become a popular choice among afi-cionados. Regardless of preference, Fer-nández de Navarrete suggests searchingout the advice of experts like Habanosom-meliers while at the same time being adven-turous when combining your favoriteHabano with a drink. “Perhaps the most traditional

approach to selecting a match is topick examples of products with similarstrengths to ensure that in the combinationone does not overcome the other,” heexplains. “Consequently, it would beappropriate to try one of the full-flavoredHabanos brands with a powerful rumaged in oak barrels. However, oppositescan attract too, so you should not avoid

putting a full-flavored Habano like Cohiba Behike,Partagás, Bolivar or Ramón Allones up against,for example, a lighter tasting Armagnac. “In any case, the object is to find combina-

tions of great products that please your palate,”concludes Fernández de Navarrete. “Take yourfavorite Habanos, seek the advice of an expertlike a Habanosommelier and start to explore!”

General Cigar has had successpairing Macanudo with The Glenlivet

and actively promotes matchingcigars and spirits at events

“In today’s world, cigars and fine spiritshave become affordable luxuries, andconsumers can readily find the perfectcigar to complement their spirit ofchoice,” says Cameron Shaw, Directorof Sales and Marketing, General CigarInternational. “As a general rule of thumb,we like to recommend that when pairing,

the best thing to do is to matchthe body of the cigar to the bodyof a spirit.”Shaw suggests that mild and

medium cigars such asMacanudo, Cohiba, CAO andExcalibur pair best with lighter-tasting spirits such as blendedscotches, Lowland single maltsand light rums. Conversely, full-bodied cigars such as PartagasBlack Label, Macanudo 1968, andEl Rico Habano go best with heav-ier spirits such as bourbons, darkrums and Highland single malts.While the above are “classic”

pairings, Shaw notes that many con-sumers are becoming more adventurouswith the spirits they choose to enjoywith their cigars: “Consumer palettesare becoming more and moresophisticated,” he explains. “Someaficionados opt to enjoy their cigarwith a cognac or calvados.”General Cigar actively promotes

pairings as a means of allowing con-sumers to get the most enjoyment outof their chosen cigar. The company hashad success pairing Macanudo withThe Glenlivet, and Cigar Master BenjiMenendez also suggests pairing thecompany’s cigars with spirits duringpresentations. “Both cigars and spirits are made of

the finest ingredients by masterblenders,” concludes Shaw. “They aremeticulously aged until they reach thepeak of perfection and they offer a widespectrum of flavors and strengths whenpaired together.”

Ted’s Cigars began mak-ing individually packagedConnecticut wrappercigars in 1995. Owing

largely to the subtle, sophisticated blend ofpremium tobaccos rolled by hand, the cigarsquickly earned a reputation for being perfectfor the everyday smoking experience and arenow available globally.However, Ted’s Cigars is perhaps best known

for creating Maker’s Mark Cigars fifteen yearsago. Seasoned with the famous bourbon andsealed in airtight glass with Marker’s Mark’ssignature red wax, the cigars exploded in pop-ularity and proved to be the catalyst for a numberof other creative collaborations with major spiritsbrands. Thankfully for cigar lovers who don’tfeel confident enough in their knowledge ofspirits to pair a smoke with an appropriate drink,Ted’s Cigars has done all the legwork. “We spend many hours reviewing the com-

panies and brands that we feel would be appro-priate for us to partner with,” says Ted Jackson,President of Ted’s Cigars. “We initially startedwith Maker’s Mark seasoned cigars and havecontinued to grow our business with the additionof Dumante Liqueur, Forty Creek CanadianWhiskey, Grand Marnier and now our own

branded HOPZ cigars, seasoned with Cen-tennial hops.”Through the use of Ted’s Cigars’ proprietary

seasoning process, the company has subtlyimparted the aroma and flavor of Centennialhops into the cigar, creating a unique blendfor cigar and beer enthusiasts alike. The HOPZCigar is a premium handmade 6 X 50 Torowith a Cameroon Wrapper, US Connecticutbinder and Dominican Republic filler. Jackson notes that soon Ted’s Cigars will

have a smoking experience for nearly everytype of spirit lover. The company’s goal is toadd additional seasoned cigars to its portfolioover the next two years. Ted’s is interested indeveloping rum-, scotch-, cognac- and tequila-flavored cigars among others. “Cigars and premium spirits have always

had an association,” says Jackson. “For cen-turies there has been nothing better than sittingdown and enjoying a great cigar with a greatspirit to reflect on an important occasion orjust to relax. We have taken this occasion tothe next level and allowed the consumer toenjoy their favorite spirit with a great handmadecigar whenever or wherever they would like.It’s a natural progression and one that cigarsmokers certainly appreciate.” c

“The peak of perfection”

Pairing made easy Ted’s Cigars’ newestcreation is a Centennialhops-flavored cigarcalled HOPZ

One of Ted’s Cigars’ morerecent offerings is seasonedusing the high-end spiritGrand Marnier

Company News: British American Tobacco

BAT continues to reinvent its products in Americas duty free while remaining trueto its long tradition of offering consumers quality cigarette brands BY RYAN WHITE

Tradition meets innovation

Dunhill Master Blend is described as distinctivelyrich and balanced. Inspired by the Mediterraneanlandscape, the product contains two kinds ofsuperior Virginia tobaccos combined withBurley and Oriental leaves for a rich smoke.The result is a full bodied smoke with notes ofsummer hay warmed with nuances of culturedcedar wood. Dunhill Swiss Blend is deep, full bodied

and robust. Inspired by a traditional Swissblend recipe, it includes rare Tibagi and Mary-land tobaccos blended with Virginia and Orientalleaves. The result is a round taste; aromaticlayers of oak and walnut are combined withbalsamic hints for a rich finish. Dunhill Blonde Blend is bright, aromatic and velvety, expertly blended

with burley and oriental leaves and topped with golden Virginia tobaccos.The resulting sensation is an unexpectedly delicate and mellow tastingsmoke with soft resinous notes and a velvety finish.


Innovation is key in any market, but its importance increasesexponentially in duty free, where travelers expect to be pleasantlysurprised with new products and travel retail exclusives at everyturn. Although British American Tobacco (BAT) owns someof the world’s most prestigious and critically acclaimed cigarette

brands such as Dunhill, Lucky Strike, Kent and Vogue, it has nevershied away from thinking outside the box. Indeed, it is likely the unique combination of tradition and

innovation inherent in the company’s brands that has kept BAT atthe forefront of the ever-evolving duty free tobacco trade over theyears. Americas Duty Free recently spoke with Carlos Felipe dos SantosRocha, BAT’s Global Travel Retail Marketing Manager for the Americas,about the company’s newest products: Dunhill Blends.“The Dunhill Blends platform is one of our most exciting new

developments,” says Rocha. “Americas is the first region in the worldwhere the products are available. With Dunhill Blends, we’re targetingadult consumers who seek a distinctive premium offer composed ofthe finest tobacco and materials that translate into a truly indulgentand differentiated experience.” The Dunhill Blends platform consists of three new products—

Master Blend, Swiss Blend and Blonde Blend—made without anytobacco additives and featuring Reloc technology, which providesconsumers with a resealable pack. As Rocha points out, the companyhas been crafting blends for over 100 years: “That’s why we carefullyseal them with Reloc—so they keep fresher for longer and may beenjoyed in the way our masters blenders intended,” he says.

Three distinctexperiences

Making it happen Thinking ahead

Master Blend, Swiss Blend and Blonde Blend are made without any tobacco additives and feature Dunhill’s exclusive Reloc technology

Rocha says that 2011 has been the best year to date for BAT so far. “The channelis experiencing sustainable passenger and value growth, airports and storesare been remodeled and together with our customers we have been able tocapture this opportunity.”Despite the numerous current developments at BAT, Rocha tells Americas

Duty Free that more innovations are on the way in terms of products,exclusive offers and unique in-store experiences. “Developing a consumer-relevant marketing mix is a critical ongoing process,” he concludes. “Althoughit’s too early to speak about some of our future initiatives, I can tell you thatBAT will remain in line with the forward-thinking nature of the travel retailindustry by continuing to bring innovation to its consumers, customersand the tobacco category.” c

After securing strategic customers’ full support for the 2011portfolio, innovations and major initiatives during IAADFSearlier this year, Rocha notes that BAT is ready to bring theseexciting initiatives to consumers.“Dunhill Blends are currently being introduced, and in

selected duty free stores consumers will be able to experiencefull brand immersion, guided by our hostesses and salesstaff,” he explains. “This will allow travelers to learn moreabout our brands, experience them and ultimately decidewhich blend is best suited to their individual tastes. We areconfident that this will translate into winning the heartsand minds of our consumers.”

apan Tobacco International recentlyreleased figures for January-March2011, noting that core net salesexcluding tax increased by 4.4% overthe same period in 2010, primarilydriven by pricing and volumeincreases. “At constant rates of

exchange, core net sales excluding tax grew by6.5%,” the company said. “Core net sales exclud-ing tax per thousand cigarettes increased by6.0% to US$26.70 at constant rates of exchange.”Global flagship brand (GFB) and total

shipment volume increased by 2.1% and0.5% respectively. GFB growth was drivenby Russia, Turkey, Taiwan and Korea. Year-on-year market share continued to grow inmost key markets including Turkey, Taiwan,Italy, France and Russia.In Southern and Western Europe, total and

GFB shipment volume decreased by 9.7% and9.1% respectively compared to the same periodof the prior year. The volume decrease was aresult of significant industry contraction inSpain and in Greece, which was slightly offsetby a volume increase in Italy. Market shareincreased in the key markets of Italy and France.In Northern and Central Europe, total ship-

ment volume increased by 1.1%, driven by avolume increase ahead of a tax hike in Marchin the UK. GFB shipments increased by 4.1%.Market share grew in Sweden and Poland.In the CIS, GFB shipment volume grew

by 7.3% and total shipment volume increasedby 0.7%. The volume increase was due tosolid growth in Russia where GFB shipmentvolume grew by 9.2% compared to the pre-vious year, strengthening JTI’s leading position.This improved performance was offset bycontinued industry contraction in Ukraine,resulting from numerous tax hikes. Marketshare increased in Russia.For the rest of the world, total shipment

volume increased by 5.3%, driven by growthin the Middle East, Taiwan, Korea and Turkey.GFB volume increased by 3.9%. Market shareincreased in Turkey, Taiwan, Korea and Malaysia.Among JTI global flagship brands, Winston

shipment volume increased by 3.1%, drivenby strong performances in Russia, Turkey andItaly, which compensated for declines in Spainand Ukraine. Camel shipment volume declinedby 5.7% due to significant industry contractionin Spain. Mild Seven shipment volume increased

by 16.4% with particularly strong growth inTaiwan and Korea. In spite of continued industrycontraction in Ukraine, LD shipment volumeincreased by 5.5% due to growth in Russia.

Investing in the futureJTI is known as a leader in airport smokinglounges, having built over 300 of themthroughout the world. Americas Duty Freerecently spoke with Santiago Llairo, CorporateAffairs and Communications Director forWorldwide Duty Free at JTI, to learn abouthow the company is continuing to invest inmaking both traveling smokers and non-

smokers more comfortable in manyEuropean airports. JTI recently refurbished six existing

smoking lounges in Zurich and builtthree new ones, making for a total of25 lounges of varying sizes in ZurichAirport. Always known for leading thepack in terms of creating modern, wellventilated lounges, JTI’s recent reno-vations were spurred on by advance-ments related to both the technologyand aesthetics of the lounges. “This represents both a complete

stylistic change and also includessome new additions in terms of thetechnology,” says Llairo. “We’ll becontinuing to renovate more loungesthroughout the year in addition tobuilding new lounges in some veryexciting locations.”Of the locations where new smoking

lounges are set to be built, Llairo notesthat 12 Winston and Sobranie loungeswill be built in Russia this year in additionto the three that already exist in the coun-try’s airports. Llairo also notes that plansare in the works for more lounges outside

Europe, although details can’t yet be released. “We’re in active talks with Latin American

airports to begin building smoking loungesin the region,” Llairo explains. “After havingbuilt so many of these high-quality smokinglounges we’re receiving interest from manydifferent places around the world. A lot ofairport authorities are starting to realize thatsmoking lounges provide obvious advantagesto both smokers and non-smokers and aretherefore becoming more open to the idea.JTI will continue to work with airports todevelop innovative solutions that make theairport experience better for all travelers.” c

On the up and up

Company News: JTI


BY RYAN WHITE

JJTI sees sales increases in Q1 2011 and continues to invest intravel retail with the addition of new smoking lounges in Europe

“JTI will continue to workwith airports to develop innovative solutions thatmake the airport experiencebetter for all travelers.”Santiago Llairo, Corporate Affairs and Communications Director forWorldwide Duty Free, JTI


Tobacco NewsPublicly traded pioneer leadselectronic cigarette industrySince 2008, electronic cigarettes have become increasingly popular as an alternativeto smoking traditional tobacco cigarettes given the fact that e-cigarettes can beused virtually anywhere. At the forefront of this burgeoning movement is pioneeringe-cigarette company Vapor Corp. [OTCBB: VPCO], which offers a range of e-cigarettebrands—from the rechargeable Fifty-One brand to the disposable Krave brand—tosatisfy the varied needs of virtually any smoker. “Vapor Corp.’s e-cigarette brands are distinct from many other e-cigarettes

available today, both in terms of the quality and the cutting-edge technologyemployed,” says Adam Frija, Director of Business Development at Vapor Corp. “Ourelectronic cigarettes do not emit any second-hand smoke. Instead, our productsemit an odorless vapor. Our electronic cigarettes look like, taste like and feel like acigarette, but they aren't cigarettes."The filter of the Fifty-One contains flavoring, nicotine and an atomizer that

essentially vaporizes the nicotine. When you inhale, a microcomputer activates theatomizer and the battery (contained in the white part of the e-cigarette). The end ofthe Fifty-One even glows when you puff it. The Fifty-One starter kit will retail in duty free for about US$100, after which time

consumers will only need to buy refill cartridges at a retail cost of just US$3 percartridge. The Fifty-One’s battery can run all day on a full charge and the starter kitcontains a charger that can plug into a wall socket or a USB port. Over the last 3 years, Vapor Corp. has crossed into virtually every distribution

channel available in the US, such as convenience stores, tobacco shops andsupermarket chains. The company also sells direct-to-consumer on its website andhas carved out a very respectable niche selling in mall kiosks throughout the US. The worldwide duty free channel is attractive to a company like Vapor Corp. for

two main reasons, says Frija: “First of all, airports are very high-traffic areas forretail, which is what any company looks for. Furthermore, e-cigarettes are a perfectfit for the duty-free customer, for the busy traveler on the go. Vapor Corp. hasincreased its business exponentially year over year since its inception and I have nodoubt that both the traveling public and the duty free industry will see immensevalue in our brands.”

Imperial Tobaccocontinues innovatingwith two travel retailexclusivesImperial Tobacco recently launched two new specialeditions for its core brands Davidoff and Gauloisesfor 2011. Exclusive to travel retail, the conceptsindicate Imperial Tobacco’s continued commitmentto and investment in the sector. They are the DavidoffCigarettes Book Edition and the Gauloises Cube.

The Davidoff Cigarettes Book Edition is presentedin a book format to emphasize the brand’s heritageand quality in a contemporary way. It combines thesuccessful story of the pack design re-launch andthe heritage of the brand. The book contains 200Davidoff cigarettes which are available in Classic,Lights, One and Slim variations.

In support of the launch, Imperial Tobacco isrunning an in-store promotion, initially set for theMiddle East and key European airports, offeringtravelers the chance to enter a prize draw for a 10-day shopping trip to New York where they will take ina fashion show. Every participant receives a specialDavidoff bookmark and is entered into the prize draw.In addition, a free gift is being offered with the purchaseof two cartons. Consumers can choose from aDavidoff ballpoint pen or a branded notebook.

The Gauloises Blondes Cube is a special editionthat hit shelves in May 2011. This unique Cube-shaped sleeve—designed along the lines of a Rubik’sCube—contains 10 packs of 20 cigarettes and isavailable in blue, red and yellow variations.

In support of the launch, Imperial Tobacco will isrunning an in-store promotion initially in key Europeanand selected Middle Eastern airports. The promotionwill offer travelers the chance to enter a prize drawand receive GWPs.

“We are very excited about these special editionsfor 2011,” says Oliver Schramm, Marketing ManagerDuty Free at Imperial Tobacco. “Imperial Tobaccostrongly believes in the need for ongoing innovationand new product development for the tobaccocategory in travel retail. Tobacco remains a key driverfor sales within travel retail, but as a supplier youcannot sit still. You must bring freshness to thecategory, inspire consumers and create theatre andexcitement around launches.”

The Fifty-One starter kit will retail in duty free for aboutUS$100; a refill cartridge costs US$3 and each can last

as long as two pack of traditional cigarettes

The Gauloises Blondes Cube is a special editionthat contains 10 packs of 20 cigarettes and is

available in blue, red and yellow variations

Sweet Life

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Company News: Horizon International Duty Free

The perfect combination

Horizon International Duty Free rounds out its portfolio of premium brands and welcomestwo duty free veterans to the team to continue generating buzz in Q2 BY RYAN WHITE

Kanye West (right) and QuincyJones (left) receive bottles ofU’Luvka Vodka at this year’s

Cannes Film Festival

VICE Vodka Icewineproved extremely

popular at TFWA APSingapore—especiallywith in-flight buyers—given the popularity of

Icewine with Asianconsumers

Horizon International Duty Free,which debuted at IAADFS 2011and recently showcased productsfrom new and existing clientsat TFAP 2011 in Singapore, will

be attending this year’s ASUTIL conferenceto continue promoting a host of brands thathave already garnered a significant amountof interest in duty free circles. Horizon currentlyrepresents U’Luvka Luxury Polish Vodka,VICE Vodka Icewine, Tortuga Rum Cakes,Tequilas de la Doña, VnC Cocktails and Cileaeyelash growth stimulator. To support thebrands, Horizon has invested through thecreation of a new website (horizoninterna-tionaldf.com) and has also brought two dutyfree veterans on board to handle new businessdevelopment with specific category foci.

Building the brandsPresident of Horizon International José Chaotells Americas Duty Free that both the companyand its brands have come out of the gatestrong since debuting in Orlando: “WithVICE Vodka Icewine, we’re building on astrong Orlando show and an especially suc-cessful TFWA AP in Singapore,” he says.“Given the fact that Icewine is so popular inAsia, the brand is getting a lot of attention,particularly from in-flight buyers.”With regard to U’Luvka Luxury Polish

Vodka, Horizon’s role to date has been topolish the brand’s messaging, put together asolid marketing foundation and iron out hol-iday gifting offerings. Stock has arrived atthe Horizon warehouse and initial customerorders have been shipped, Chao says. Inter-

estingly enough, although U’Luvka is lookingforward to showcasing at Cannes, the vodkahas already been there and back for the annualfilm festival where bottles were presented toKanye West and Quincy Jones. Tequilas de la Doña, one of the newest

companies Horizon is working with, offerstequila made from 100% agave. “Horizon iscarrying three of the company’s tequilas—super premium El Secreto, premium La Doñaand value brand Don Max,” explains Chao.“The company was created in 1997 and we’revery pleased to be working with founderAlberto Becherano.”Cilea eyelash growth stimulator showcased

its wares with Horizon for the first time inSingapore this year. The reaction to the prod-uct was phenomenal, says Chao, given thefact that Cilea’s laboratory-proven ingredientsboost hydration, stimulate hair growth andstrengthen lashes. Another new addition tothe Horizon portfolio that is creating a lotof buzz is VnC Cocktails. This line of 100%natural pre-mixed cocktails (PomegranateCosmo, which contains anti-oxidants; PacificBreeze with coconut, lime and pineapple;Mojito, with fresh garden mint and WestIndies limes; and Margarita, made with blancotequila) is made in New Zealand and comesin 1L and 200mL sizes.“We’ve worked very hard on building a

strong portfolio of amazing brands, and withinternationally renowned Tortuga Rum Cakesrounding out the pack, we feel we’re in greatshape to continue generating new businessgoing into this year’s ASUTIL conference,”says Chao.

The peoplebehind the brandsThe newest additions to theHorizon team are duty free vet-erans Doug Andrews andEduardo Berger. Andrews is acosmetics, fragrance and acces-sories executive with over 20years’ experience in travelretail. Previously Manager ofInternational Operations -Western Hemisphere for Giorgio BeverlyHills, Lancaster, Davidoff Cool Water, Dolce& Gabbana, Moschino and Versace, Andrewsalso served as International Operations Man-ager for Chase Durer, Fendi and Movadowatch groups. Berger is a 14-year player in the tobacco

industry, with 6 years as Duty Free SeniorManager for British American Tobaccoin Latin America. Berger’s role at Horizonwill be to build brands given his solid knowl-edge in marketing, logistics and commercialapplications. With a degree in Foreign Com-merce and several languages under his belt,Berger communicates with fluency at anylevel of management and through variouscultures. From his base in Buenos Aires, hewill focus on South American duty free andduty paid markets.“We’re very happy to welcome Doug and

Eduardo to the team at Horizon InternationalDuty Free,” explains Chao. “With the rightbrands and the right people on board, we’relooking forward to a successful ASUTIL con-ference in Cancun and, further on, a productiveTFWA WE exhibition in Cannes.” c

2:57 PM

For more information, contact Bob Syner of Specialty Brands

at 954-722-0222 or [email protected]


Prairie Organic /Kosher VodkaCompany: Specialty BrandsDescription: This corn-based vodka is certifiedorganic and kosher. Fromthe corn to the stills to thebottling, Prairie is organicand has reduced theenvironmental impact ofproduction significantly

Svedka Vodka Company: Stansfeld Scott Description: Imported fromSweden, Svedka Vodka isdistilled five times from Swedishwinter wheat and contains allnatural flavors. With its cleanbottle design and colorfulSvedka band, this vodka is achic addition to any back bar

DG 4116 – Lace CollectionCompany: Luxottica Group Description: Refined, oversized shades madewith authentic Dolce&Gabbana lace insertedwithin the acetate temples and frames. Colorsavailable include black, scarlet, white, andgreen. This model comes with exclusive lacecovered packaging, which features thesignature gold and silver-coloredDolce&Gabbana plaque

The Island TrioCompany: Hawaiian HostDescription: The Island Trio is a15.3oz clear pack with zipper andtote handle containing 18 two-piecebars; six bars each of MacNutCrunch, Maui Caramacs, andchocolate covered macadamias

DG 4121– Lace Collection Company: Luxottica GroupDescription: Alluring 80s shapedmodel with solid colored acetate rimscoupled with an elegant touch ofauthentic laced temples. The lacedtemples feature a gold colored metalDolce&Gabbana logo. Colorsavailable include white, timelessblack, an elegant shade of red

LIQUOR

New & Notable

Gems Milk Chocolate StrawberryTruffles Limited Edition Company: Godiva ChocolatierDescription: Milk chocolate truffles filled witha delicious mousse made with realstrawberries. A fruity wrapper describes thesweet flavor inside. The limited editioncontains 22 truffles

Silk-épil Bikini StylerCompany: Braun GmbHDescription: The Silk-épil BikiniStyler is a hair removal tool thatallows precise styling in thebikini area thanks to the slim

bikini zone cuttinghead and highperformance 5mmprecision cuttinghead. The productis available in pinkor white andcomes in airline-friendly packaging

EYEWEAR

TRAVEL ACCESSORIES

CONFECTIONERY

Silk-épil 7 Dual EpilatorCompany: Braun GmbHDescription: The newBraun Silk-épil7 DualEpilator is a hair removaldevice that combines thebetter of two worlds. Notonly does it provide thebest of epilation but italso gives great longlasting shaving resultswith superior smoothnessand less pain in just one stroke

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

Unzip a new skin feeling that lasts, in one stroke.New Silk•épil 7 Dual Epilator

with


1. Mexico introduced chocolate, corn andvanilla to the world.

2. In 1539, Mexico City was home to NorthAmerica’s first printing press.

3. The National University of Mexico is theoldest university in North America.

4. Mexico is second only to Brazil in totalnumber of Catholic citizens.

5. There are over 200,000 different speciesof plants and animals in Mexico.

6. Mexico receives over 20 million tourists ayear.

7. Mexico is the most populated Spanishspeaking country in the world.

8. Because Mexico City was built on a lakebed, the metropolis is sinking at a rate of6 to 8 inches a year as pumps continuouslydraw water out for the city’s growing pop-ulation.

9. Aztecs played tlachtli, a ritual ball gamein which the losers were often sacrificedto the gods.

10. The first recorded convention ofastronomers was held in the Mayan capitalof Copán in 700 AD.

11. The “arbol de Tule” in the state of Oaxacais a tree estimated to be over 2,000 yearsold and is considered one of the oldest inthe world.

12. The Mayans built the pyramid at ChichenItza, an ancient archaeological site, in sucha way that the shadow of a snake appearsto crawl up the structure’s side during thetwo equinoxes.

13. Northern Mexico’s Zone of Silence, locatedabout 400 miles from El Paso, is a well-known hotspot for UFO activity; watches,compasses and radio equipment oftenmalfunction there.

14. The tomato got its name from the ancientlanguage of the Aztecs.

15. The first version of hot chocolate was actu-ally served cold and included crushed chilipeppers as a main ingredient; conqueringSpaniards reported that Aztec rulerMoctezuma would sometimes drink up to50 cups a day!

Did you know…?

Where the industry is vacationing

Americas Duty Free offersup some interesting factsabout Mexico, the hostcountry for this year’s ASUTIL conference

Mexico is legendary for its amazing vacation spots, but it’s justone of many locations around the globe where tourists flock.Americas Duty Free asked some well known industry figureswhere they’ve vacationed recently.

Marco A.Lares, DutyFree/TravelRetail SalesManager atMarcolin USAInc., inSouthernBrazil

Francois VanAal, RegionalDirector ofAmericas DutyFree at RémyCointreau, withhis family inConnecticut

EssenceCorp’s Jean-Jacques andPatricia Bonatrekking inMacchuPicchu, Peru

HK Global DutyFree’s VicePresident ofMerchandisingMarco Arilli inSouth Africawhere he dovewith GreatWhite sharks

Smoking Kills

AMERICAS DUTY FREE

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