Gulf-Africa Duty Free & Travel Retailing

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NOVEMBER/DECEMBER 2011 • MEDFA • VOL 21, NO 3 MEDFA 2011 Dufry retains highest standards p.20 Colm McLoughlin’s storied career p.24 E-cigarettes: The new alternative p.98

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Gulf-Africa Duty Free & Travel Retailing is published four times a year (Spring, Fall and Winter) by Global Marketing Company. It is distributed to duty free operators and distributors in the following countries: Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, UAE, Yemen, Algeria, Azerbaijan, Benin, Cameroon, Cape Verde, Djibouti, Egypt, Ethiopia, Gabon, Ghana, Guinea, Iran, Ivory Coast, Jordan, Kenya, Lebanon, Madagascar, Malawi, Mali, Mauritius, Morocco, Mozambique, Niger, Nigeria, Namibia, Pakistan, Reunion, Senegal, Seychelles, South Africa, Sudan, Syria, Tanzania, Togo, Tunisia, Turkey, Turkmenistan, Uzbekistan and Zaire, as well as to duty free suppliers worldwide.

Transcript of Gulf-Africa Duty Free & Travel Retailing

Page 1: Gulf-Africa Duty Free & Travel Retailing

NOVEMBER/DECEMBER 2011 • MEDFA • VOL 21, NO 3

MEDFA 2011

Dufry retainshighest standards p.20 Colm McLoughlin’s

storied career p.24 E-cigarettes: The new alternative p.98

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Find us on and anthonberg.com

YOU CAN NEVER BE TOO GENEROUS

MAKE YOUR HOMECOMINGA SWEET MOMENTA SWEET MOMENT

Please contact Mr. Alex Sørensen at [email protected] for further information

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fter speaking to a number of suppliers andoperators during the TFWA World Exhi-bition, we noticed they all shared a similarsentiment about the Middle East: thingsare tumultuous, but slowly improving.

In Africa, there are a number of countries experiencingexceedingly difficult transitions. Nonetheless, there aresome pockets that are more stable and give rise to opti-mism. Thomas Galet, General Manager of Dufry Moroccoand West Africa, says his business in the region is flour-ishing, notwithstanding serious political developmentson the Ivory Coast.

A new store in Rabat has been planned, and there arenumerous Hudson News openings planned for Moroc-can airports in the near future. In total, the company oper-

ates 19 stores within Morocco, the Ivory Coast and Ghana. To find out more about travelretail news in the region, please turn to our top story.

The news gets a little better when looking at the Gulf region…As we were going to press we received an announcement from Abu Dhabi Airports Com-

pany (ADAC) about the completion of upgrades to Terminal 1 at Abu Dhabi InternationalAirport. The refurbishment will help the company expand its passenger handling capac-ity, which in turn will improve the quality of the traveler experience when passing throughthe terminal.

The project took 12 months to complete and was part of a program to expand airportcapacity and meet anticipated traffic growth. Longer term expansion plans include build-ing new terminals and facilities.

Also in this issue we have interviewed a venerable duty free celebrity: Mr. ColmMcLoughlin. The long-time industry veteran took some time to speak to us about his hum-ble beginnings and his 30-year rise at Dubai Duty Free, an illustrious career that deservesto be recognized.

We hope you’ll enjoy this issue as much as we enjoyed producing it.

Kind regards,

Hibah [email protected]

Letter from the Editor

ABeating the crisis

Gulf-Africa Duty Free & Travel Retailing (ISSN

0954-0592) is published four times a year (Spring, Fall

and Winter) by Global Marketing Company Ltd., 26

Pearl Street, Mississuaga, Ontario L5M 1X2 Canada.

It is distributed to duty free operators and distribu-

tors in the following countries: Bahrain, Kuwait,

Oman, Qatar, Saudi Arabia, UAE, Yemen, Algeria,

Azerbaijan, Benin, Cameroon, Cape Verde, Djibouti,

Egypt, Ethiopia, Gabon, Ghana, Guinea, Iran, Ivory

Coast, Jordan, Kenya, Lebanon, Madagascar, Malawi,

Mali, Mauritius, Morocco, Mozambique, Niger, Nige-

ria, Namibia, Pakistan, Reunion, Senegal, Seychelles,

South Africa, Sudan, Syria, Tanzania, Togo, Tunisia,

Turkey, Turkmenistan, Uzbekistan and Zaire, as well

as to duty free suppliers worldwide.

Subscriptions: $200 for one year, $300 for two yearsand $400 for three years. Art and photographs will

not be returned unless accompanied by return postage.

The views expressed in this magazine do not necessarily

reflect the views and opinions of the publisher or editor.

November/December 2011, Vol. 21, No.3. Printed in

Canada. All rights reserved. Nothing may be reprinted

in whole or in part without written permission from

the publisher. © 2011 Global Marketing Company Ltd.

GULF-AFRICA DUTY FREE & TRAVEL RETAILING

26 Pearl StreetMississauga, Ontario L5M 1X2 CanadaTel: 1 905 821 3344; Fax: 1 905 821 2777

www.dutyfreemagazine.ca

PUBLISHER

Aijaz Khan

[email protected]

EDITORIAL DEPARTMENT

EDITOR

Hibah Noor

[email protected]

CONCESSIONS, LIQUOR & TOBACCO EDITOR

Ryan White

[email protected]

MIDDLE EAST CORRESPONDENT

Faye Rowe

[email protected]

ART DIRECTOR

Patrick Balanquit

[email protected]

ADVERTISING SALES

ADVERTISING & MARKETING MANAGER

Kim Carrera

[email protected]

SENIOR REGIONAL MANAGER

Neelma Hasan

[email protected]

CIRCULATION & SUBSCRIPTION MANAGER

Deepa J

[email protected]

www.dutyfreemagazine.ca GULF-AFRICA DUTY FREE & TRAVEL RETAILING 3

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INTERVIEW: COLM MCLOUGHLIN

In his own words Gulf-Africa Duty Free talks to Colm McLoughlin, one ofthe industry’s true legends, about his start in duty freeover four decades ago and the meteoric rise of DubaiDuty Free

OPERATOR NEWS: SHARJAH DUTY FREE

Snowball effectRenovations to the main store, the opening of twoHudson News locations and positive Septemberpassenger numbers bode well for Dufry Sharjah as theyear winds down

OPERATOR NEWS: BAHRAIN DUTY FREE

Standing strongBahrain Duty Free sharpens its focus on customerservice, finding no shortage of inspiration during whatGeneral Manager Garrett Coogan calls “a difficult year”

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IN BRIEFADAC announces completion of Terminal 1 refurbishmentat Abu Dhabi Airport � Consortium finalizes MadinahAirport privatization deal � RAK Airways introducesflights to Sudan � Perfume Holding sets up shop in Dubai� Maui Jim gains momentum in Middle East � WanderingMonkey delivers entertainment and education � Creatingroyal jewelry for everyone � Marketing a fascination withfountain pens that write like ball points

TOP STORY: DUFRY MOROCCO AND WEST AFRICA

The highest standardsDufry Morocco and West Africa ups the ante with newstore openings, renovations and customer serviceinitiatives across its 19 store locations

NOVEMBER/DECEMBER 2011 • VOL 21, NO 3

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OPERATOR NEWS: DUBAI AIRPORTS

Good, better, bestDubai Airport’s passenger numbers rise year over yeareven as it continues to implement innovations unlike anyothers present in the Middle East

OPERATOR NEWS: MIDDLE EAST AIRLINES

Raising the barMiddle East Airlines has done particularly well for itselfthis year in terms of onboard duty free sales due to itsconcentration on offering more choice and only the bestproducts

OPERATOR NEWS: ALDEASA KUWAIT

Building relationshipsWith a new store opening planned and business doingwell, Aldeasa Kuwait says it owes it all to the strongbonds it has developed with suppliers and shoppers alike

OPERATOR NEWS: HAMILA DUTY FREE

Fighting the good fightHamila Duty Free continues to register a series of smallvictories in the face of declining tourist numbers inTunisia

OPERATOR NEWS: DUBAI AIRPORTS ANDDUBAI DUTY FREE

A new directionDubai Duty Free, in cooperation with Dubai Airports andMasterCard, offers travelers a new way to pay

COMPANY NEWS: dcav8

Ideas led by insightGulf-Africa Duty Free speaks with Managing Director ofdcav8 Hugo Mills about how important it is to getoperators thinking outside the box—and outside the store

TFWA WE REVIEW

TFWA World Exhibitionattendance up 9% A packed Palais was a perfect testament to the successof the TFWA World Exhibition this year

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COMPANY NEWS: GOLDKENN

Cashing in on the MiddleEastern sweet toothGoldbar product is ‘in harmony’ with Middle Easternculture, says Goldkenn

JEWELRY/ACCESSORY NEWS

Details, detailsA focus on materials, process, and quality details marksthese accessories, new for 2012

LIQUOR REPORT: STANDOUT SPIRITS

The spice of lifeWhether it’s new packaging, never before seen productsor large-scale promotions, spirits suppliers are pulling outall the stops to keep travelers in the Middle East on theedge of their seats

COMPANY NEWS: PERNOD RICARD GULF

Strength squaredStrong sales from operators in the Middle East combinedwith high demand for Pernod Ricard’s premium spiritscombine to boost the supplier’s numbers in the region

COMPANY NEWS: BERRY BROS. & RUDDSPIRITS

A happy conundrumThe increasing popularity of The Glenrothes in the MiddleEast puts BB&R Spirits in the curiously pleasing positionof keeping up with demand for what is an exceptionallyrare whisky

COMPANY NEWS: JAPAN TOBACCOINTERNATIONAL

Steady as she goesThe Middle East plays a key role in JTI’s July toSeptember statistics, driving global flagship brandshipment growth

COMPANY NEWS: HABANOS

The height of perfectionHabanos has a number of new releases out this year thatare sure to please even the most demanding cigaraficionados in the Middle East

NEW & NOTABLEDavidoff Puro d'Oro Momentos � Bottega Gold � Toffifee� Neuhaus Dessert Collection

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COMPANY NEWS: PUIG

Brand mastersDespite hiccups, sales are up overall for Puig’s huge rangeof well known brands, and the new rollouts keep coming

COMPANY NEWS: BEAUTÉ PRESTIGEINTERNATIONAL

Elie Saab’s Le Parfum readyfor take offTraveller confident Elie Saab’s fashion house fame willrub off on fragrance

FRAGRANCE NEWS

Fragrant waves The allure of luxury fragrances continues to be a marketmaker, from the Middle East to Italy… and beyond

COMPANY NEWS: INTERNATIONAL TRAVELRETAIL

International Travel Retailtakes challenges head on The new distributor signs alcohol deal with Italy’s Cavalli,and there’s more to come

COMPANY NEWS: LA PRAIRIE

Debut in Dubai La Prairie covered DDF in a web of coordinatedpromotions to launch its new skincare product

COMPANY NEWS: L’ORÉAL CONSUMERPRODUCTS

The right mixL’Oréal Consumer Products makes inroads in the MiddleEast with a varied portfolio

COMPANY NEWS: ANTHON BERG

All under one roofA visit to Anthon Berg’s production facility offers aninsightful glimpse into how the Danish confectioner’sproducts are made from A to Z

COMPANY NEWS: KRAFT FOODS WORLDTRAVEL RETAIL (KFWTR)

Confectionery KraftsmanshipFresh from the acquisition of Cadbury, Kraft Foods WorldTravel Retail is on a roll

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RAK Airways introduces flights to Sudan

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In BriefADAC announces completion of Terminal 1refurbishment at Abu Dhabi Airport

Abu Dhabi Airports Company (ADAC) has announced the completionof the refurbishment and upgrading works of Terminal 1 at Abu DhabiInternational Airport, which will expand its passenger handlingcapacity and ensure the delivery of quality service and experienceacross the airport. The refurbishment project included the increaseof the number of check-in and immigration counters, and theexpansion and development of the retail and F&B space. The project was carried over 12 months as part of the pro-

gram to expand the airport capacity and meet the anticipated traf-fic growth while completing the longer term expansion plans ofthe capital’s airport through building new terminals and facilities.The completed project was also designed to deliver a high qual-ity facility and upgraded services in Terminal 1 in line with the Ter-minal 3 offerings. Ahmed Al Haddabi, COO of ADAC, said: “At Abu Dhabi Airports

Company we are constantly striving to elevate the travel experienceand ensure clients, whether passengers or airlines, enjoy a uniquejourney. Driven from this ambition, T1 underwent a thorough andcarefully designed upgrade plan to bring it in line with Terminal 3 andensure that customers using any part of Abu Dhabi International Air-

port will have a refreshing and efficient start or end to their journey.” The renovation plan is part of ADAC’s ongoing plans for the devel-

opment and expansion of Abu Dhabi International Airport. The Ter-minal 1 renovation included major design and decorative worksincreasing the capacity to 34 immigration and passport control coun-ters in departures and arrivals and 54 check-in counters, which isa 40% increase in capacity. The number of E-gates available and the seating capacity have

also been increased to keep up with the continuous growth in pas-senger traffic. The refurbishment works also resulted in the deliv-ery of immigration counters and E-gates that cater to the passengerswith special needs, easing their travel experience at Abu Dhabi Inter-national Airport. Additionally, passengers will now enjoy an enhanced shopping

and dining experience through the newly developed layout of theretail and food & beverage space with an enhanced offering of 27outlets. The airport hotel and hospitality lounges have also under-gone a thorough makeover to deliver a unique product in luxuryand convenience now available to all passengers at Abu Dhabi Inter-national Airport upon request.

Abu Dhabi Airport’s newly refurbished Terminal 1

UAE carrier RAK Airways has marked theexpansion of its route network to 10 desti-nations with the introduction of flights toKhartoum, Sudan. Effective December 15,2011 RAK Airways will offer three flights a weekto Sudan’s capital city. RAK Airways re-launched operations a

year ago with two routes to Jeddah, KSA andCalicut, India. Over the last twelve months theairline has focused on extending its route net-

work across the GCC, Indian sub-continentand North Africa. RAK Airways’ said its entryinto Sudan marks a milestone for the airline,which now operates to 10 destinations.In the weeks following the airline’s first

anniversary, RAK Airways announced theintroduction of flights to Peshawar and Lahorein Pakistan, Kuwait and an increase in frequencyto its Doha flights to seven times a week.“We had a clear mandate to fly to 10 des-

tinations within one year of re-launching ouroperations,” said RAK Airways CEO OmarJahameh. “With the introduction of our flightsto Khartoum, we have achieved our objec-tive and laid the foundation for a successfuland profitable future for the airline.“Khartoum presents compelling business

opportunities and marks our commitmentto furthering our presence in North Africa,”concluded Jahameh.

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In Brief

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Consortium finalizes Madinah Airportprivatization deal As first reported by AMEInfo.com, SaudiArabia's General Authority of Civil Aviation(GACA) has signed a build-operate-trans-fer contract with a consortium led by Turk-ish group TAV Airports for Madinah Airport.This represents the first airport privatiza-tion deal in the kingdom. In addition to TAV, the consortium com-

prises partners Al Rahji and Saudi Oger.The airport's civil work is set to com-mence in the first half of 2012 and will becompleted in three years. The consor-tium will operate the airport until 2037. Thecapacity of Madinah Airport will be raisedto 8 million passengers per year by increas-ing the capacity of the existing airportthrough a new terminal building in addi-tion to other improvements.

Perfume Holding sets up aregional office in DubaiPerfume Holding, a leader in the semi-selective segment of the perfume market,has opened up a regional office in Dubai,to increase its share of the Middle East mar-ket. It has appointed Emilie Boudal, athree-year veteran of Perfume Holding,as Regional Sales.The office, named Lys Bleu and opened

in partnership with Al Fahim Avenue Group,is located in Deira. It will be the com-pany’s key interface with distributors, retail-ers and travel retail operators. PerfumeHolding’s Patrick Malek, Middle East/AfricaSales Director says, "this partnership willenable the group to promote both sell-inand sell-out sales, with a specific focus ona qualitative merchandising work at thepoint-of-sale."The company says it is setting up a new

travel retail division that will be in chargeof developing business in the Middle East,giving top priority to developing the Fer-rari brand, both with airlines and airports.

Perfume Holding is a fairly new entity. It wascreated in 2010 by the merger betweenMorris Profumi and Selective Beauty, twoimportant players in the fragrances and cos-metics industry, and has offices in Paris,Milan and Parma.Perfume Holding portfolio includes brands

such as Atkinsons, Ferrari, Benetton, JohnGalliano, La Perla, Sergio Tacchini, Icebergand Ducati. The company's two pillarbrands are Ferrari and Benetton. The Ital-ian market represents 40% of total sales,followed by the rest of Europe (20%), theMiddle East (10%), North America (10%),Asia (7%) and BRIC or Brazil-Russia-India-China (6%). In 2010 alone, Perfume Hold-ing generated revenues of approximately€135 million (US$18.7 million).The Marketing & Creation division is

headquartered in France, while the Sales,Finance and Back Office divisions arebased in Italy, with a production plant inParma.

Maui Jim gains momentum in Middle EastMaui Jim, the specialized eyewear maker thatstarted on the beaches in Hawaii and ended ina large corporation with a cult following, hasmoved its European Travel Retail Sales Manager,Martine Larroque to Dubai to head up its Mid-dle East division. And shortly, the company willalso open a satellite office in Saudi Arabia,says Giles Marks, Director of Global TravelRetail for Maui Jim."The advantage for us is that Martine is liv-

ing in Dubai and we'll be able to react quickerto the demands and needs of business in thetravel retail sector of the Middle East," Marks says."It's the old adage of domestic sales driving travelretail sales and in return travel retail sales help-ing to drive domestic sales… We recentlyappointed a dedicated merchandiser at DubaiDuty Free, which was long overdue. That's a directresult of Martine living in Dubai, we were ableto address that need."Asked about the company's bestsellers in the

region, Marks said that while bestsellers are prettymuch the same around the world, "for the Mid-dle East I would say the only specific trend isour Neutral Grey lenses are popular, maybebecause of the amount of sun. People likedarker lenses." He pointed out that Maui Jimis always up against the strength and high pro-file of fashion brands, but continues to steer thecourse and do what it does best – high per-

formance lenses, stylish frames and great cus-tomer service - holding steady as it has donefor the past 30 years. “So we committed a tremendous amount of

resources to customer service, training, theproduct and our retailers,” he says.The company says that it has probably seen

a 50% increase in sales over the last two yearsand knows how important and beneficial it is tohave a dedicated sales person, especially forbrands like Maui Jim, which has a story that needsto be told to help demonstrate the lens tech-nology. Maui Jim's technology goes back to1980 when it saw a need to combat intense glarefrom the sun and harmful UV while bringing thebrilliant colors of the island of Hawaii to life.The fledgling company then engineered the rev-olutionary PolarizedPlus lens, incorporating it intoseven new sunglass styles.In 2006, its new 24,000-square-foot state-

of-the-art direct surfacing lab was built to ensureprecision prescription optics. A year later, MauiJim introduced MauiReaders. MauiPassportfollowed in 2008, offering prescription wearerswide views and outstanding acuity. That sameyear, its MauiHT lens was introducing with apromise to bring clarity to low-light condi-tions.The company continues to evolve, mostrecently introducing MauiGradient single gra-dient lenses and MauiFlex flexible frames.

Giles Marks, Director of GlobalTravel Retail for Maui Jim

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In Brief

Marketing a fascinationwith fountain pens that write like ball points

Parker’s Ingenuity: A fountain penwith the ease of a roller ball

David Dayan,InternationalDirector, LesAccessoiresTravel Retail

The marketers and sellers at Les Accessoires Travel Retail(LATR), Europe’s premier casual-luxury goods distributor, isfinding that shoppers continue to have a fascination with foun-tain pens but what sometimes holds them back is its disad-vantages. However, this may soon be history with Parker’s newproduct, the Ingenuity Collection.“Everybody would like to have a fountain pen but without

disadvantages,” says LATR’s International Director, DavidDayan. “That’s the reason why Parker launched a new way ofwriting with the Ingenuity Collection which looks like a fountainpen but with all advantages of a roller ball.” There is a logic behindthis: ball pens continue to be the best selling items for LATR“thanks to the price and also its easy writing.”LATR’s other top seller is the Guess Collection, especially its

timeless jewel – the bracelet charms. After Guess openings at sev-eral airports around the world including Moscow, Sharjah and Mon-tevideo, to help maintain the momentum, LATR showcasedGuess Fall 2011 and Spring 2012 jewelry collections in Cannes.

Dayan reports that Parker setups are rolling along nicelywith six to eight new openings a month and an overallincrease of 38%. More than 50 new points of sales haveopened in eight months in the Americas, in locations suchas Seattle, New York, Washington, Montevideo and Miami.

For 2012, this seven-year-old luxury goods distrib-utor is also working with the two companies to offerspecial collections for in-flight sales and for the cruiseline market.

Its current hold brands are Lacoste Accessories,Timberland Travel Gear, Puma Sunglasses, Elle Sun-glasses and Esprit Sunglasses. Earlier this year,LATR began marketing the well-known Europeanswimwear for men, Vilebrequin. However, it is focus-ing this product in Europe where it has noticed thatthe luxury swimwear maker is the preferred brand.

Wandering Monkey deliversentertainment and education Wandering Monkey’s new stand unveiled at the TFWA show in Cannes, markedthe beginning of a new adventure for Wandering Monkey followers. Wandering Monkey’s Jonathan Corbett says: “We are dedicated to providing

products that are entertaining, educational, interactive and extremely portablefor boys and girls that are three years and up, with a focus on the travel retailmarket. This year in Cannes 80% of the appointments on the stand were withcompanies new to Wandering Monkey. We are really starting to increase our vis-ibility in the duty free and travel retail market and are going to continue to do thisin all locations.”Working in partnership with customers was a key strategy of the company for

2011 and one that it intends to continue. The success experienced with its joint pro-motion with Condor Ferries in the ferry’s summer brochure is a testament to retailerand supplier partnership, says Corbett. Wandering Monkey supported games andpuzzles for kids onboard as well as a hugely successful coloring competition.Wandering Monkey also won the Airline Retail award at the ARC conference

earlier this year for the most promising supplier to In-flight Retail.For more information contact Jonathan Corbett, tel: +44845 0946296 or email:

[email protected]

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In Brief

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Creating royal jewelry for everyoneWelsh jeweler Clogau Gold, whose handcrafted jewelry sells through 500outlets worldwide, including via duty free outlets on airlines and in airports,and which is associated very closely with Britain’s royal family, will offerspecial royal jewelry replica offerings in 2012, the 60th anniversary of thereign of Britain’s monarch, Queen Elizabeth.Clogau is famous for its rare Welsh gold that it has supplied to Britain’s

royalty for a hundred years to make royal wedding regalia. Next year, forthe anniversary it has teamed up with the Historic Royal Palaces Enter-prises to present a portfolio of royal themed jewelry, including the Kens-ington, Royal Charms and Diamond Jubilee Collections.While the real royal jewelry sees the full use of the rare Welsh gold which

has a rose tint to it, Clogau takes a small quantity from a limited supplyof the gold and adds it to the products it sells through its worldwide sup-pliers, giving its jewelry a special air of distinction. It is this use of the royalgold and its association with the royal family that allows the company tocommand premium prices and offer exclusive and distinctive products,making it an internationally recognized brand.The Clogau mine was originally a copper mine until its owner one day

cracked open a rock in 1854 and found it contained gold. Shortly there-after, the royal family began using Welsh gold in the special jewelry thatwas made for it. In 1923, the ring made to celebrate the nuptials betweenLady Elizabeth Bowes-Lyon and Prince Albert of York, future King GeorgeVI, was fashioned from a nugget of pure Welsh Gold from the Clogau StDavids mine in Snowdonia.

Prince William& CatherineMiddleton

Prince Charles &Diana Spencer

The Queen & Prince Philip

Princess Margaret &

Anthony Armstrong-Jones

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The highest standards

Top Story: Dufry Morocco and West Africa

20 GULF-AFRICA DUTY FREE & TRAVEL RETAILING NOVEMBER/DECEMBER 2011

Rabat Airport, a new store opening is plannedfor the next few days [the end of October – Ed].The store measures 173-square-meters, withan important choice of brands and articles.

Hudson News will also be implementedin 8 airports throughout Morocco. Thislaunch will start in a couple of months andwill be finalized during the first semester of2012. We will sell the traditional ranges thattravelers are accustomed to finding at Hud-son News, such as magazines, newspapers,candies, chocolate, souvenirs, tobacco perpacket and so on.

The shops will be between 30- and 100-square-meters and will address a real needinside the airport, as there are currently nooffers at all for magazines and newspapers in

the boarding area of the Moroccan airports.The Ivory Coast and Ghana also have

major projects upcoming in 2012, whichinclude refurbishments and the opening ofnew stores.

GADF: How has business been in the thirdquarter? How does this compare to thesame period last year? TG: Apart from Ivory Coast, where the polit-ical situation remains challenging, we haveseen a positive development.

GADF: In the airports where you oper-ate, what nationalities are purchasing themost? How do you cater to these travelersspecifically?

ufry Morocco and West Africa,business unit 5 of Dufry’s region2, operates 19 stores withinMorocco, the Ivory Coast andGhana. Gulf-Africa Duty Free

recently had the opportunity to speak withThomas Galet, Deputy Chief OperatingOfficer of Dufry Morocco and West Africa,about business so far this year and what theoperator has planned for the coming months.

We discovered that despite political issuesin the Ivory Coast, Dufry Morocco and WestAfrica is flourishing, with a new store inRabat and numerous Hudson News open-ings planned for Moroccan airports in thenear future. The company is also renovatingin the Ivory Coast to ensure that when trav-elers return in full force the stores are ready.

Galet discusses passenger profiles at DufryMorocco and West Africa’s stores, purchas-ing trends, training programmes and pro-motions, effectively providing a glimpseinto a region that is clearly as dynamic as anyother the world over in terms of duty freeand travel retail.

Gulf-Africa Duty Free: Have there beenany new store openings or renovationsrecently? Are any openings or renovationscoming up in the near future? If so, couldyou explain?Thomas Galet, Deputy Chief OperatingOfficer, Dufry Morocco and West Africa:With the opening of the new terminal at

D

“For 2012, Dufry Morocco andWest Africa has a lot of projects—new store openings, including theintroduction of the Hudson Newsconcept, the introduction of newbrands and shop enlargements.”

Thomas Galet, Deputy Chief Operating Officer, Dufry Morocco and West Africa

Dufry Morocco and West Africa ups the ante with newstore openings, renovations and customer serviceinitiatives across its 19 store locations BY RYAN WHITE

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vice, and not just an article to buy. Theywant to be advised and assisted when theypurchase. As a result, we have put a realemphasis on customer service and imple-mented training sessions for the staff.

In addition, more and more customersare looking for affordable products. Cus-tomers traveling on low-cost airlines areincreasingly looking for affordable, ready-to-eat food such as single chocolate bars, can-dies, chips and so on. We have introducednew products and brands to cater to thisneed. An example would be Bahlsen prod-ucts, which are selling quite well.

GADF: How are passenger numbers in theairports where you operate? Are sales stay-ing ahead of passenger numbers? TG: We are operating in airports of varyingsizes, from very big airports like Casablancato very small airports like Dakhla. Most of

TG: In Morocco, our most important cus-tomer segments are from Western Europe. Forthe main nationalities, we try to implementspecific communications and adapt ourassortment to their needs. In the Ivory Coastand Ghana, our customers are mainly peo-ple from the two countries themselves orfrom the sub-region.

GADF: Can you tell me your top three cat-egories in terms of popularity? TG: The top three categories in terms ofsales are tobacco, followed by perfumes andthen food.

GADF: Have you noticed any changes inpurchasing habits/trends? Is there any-thing new that customers are looking for?Is there anything that has sold well in thepast that may not be as popular now?TG: Nowadays, customers are looking for ser-

the Moroccan airports are showing an impor-tant growth in PAX numbers. The situationis the same for Ghana. Passenger traffic inthe Ivory Coast hasn’t been great for obvi-ous reasons.

In all of our operations, our sales perPAX are growing faster than the PAX num-bers themselves. This is due to the impor-tant work delivered on training our employ-ees. This year Dufry delivered the Dufryplus 1 training program, which is focused oncustomer service.

GADF: Have there been any major pro-motions recently? Can you explain themechanics, the brands involved and theresults achieved?TG: A worldwide Dufry promotion beganrecently in October called “Magical Prices.”This promotion generally lasts for four monthsand includes 10 discounted bestsellers fromthe following three categories: perfumes andcosmetics, spirits and food. There are specificgondolas dedicated to the promotion, withcommunications and promotional materialimplemented exclusively for this initiative.

GADF: Are there any major promotionscoming up for the holiday season? Canyou explain?TG: For the holiday season there are a mul-titude of promotions coming up. Theyinclude promotions in perfume and cos-metics, spirits and chocolates. These cate-gories are the most in demand during the hol-iday season.GADF: Have there been any major stafftraining initiatives recently? If so, what

That little something extraDufry plus 1 is an integral part of Dufry’s strategy for customer’s satisfaction and oper-ational efficiency. The programme focuses on the added or “plus” activities that salesassociates can provide to ensure that the Dufry customer experience is number one.With the backing of Dufry’s Global COO José Antonio Gea, the programme was launchedlocally in 2010 by Dufry’s Regional COO for Eurasia, Rene Riedi. The backbone of the programme is the development of Dufry managers at regional

and business unit levels as trainers and sales & service champions. The programme wasrolled out jointly with Dufry’s regional HR directors and local HR managers in partner-ship with Retail Operations.The pilot, which took place in Sharjah, originally saw 10 managerial staff become qual-

ified trainers to roll out and deliver the Dufry plus 1 training programme to all sales asso-ciates at the airport. Since that time, Dufry plus 1 has been rolled out across numerousregions, resulting in enhanced customer service at innumerable store locations.

Page 22: Gulf-Africa Duty Free & Travel Retailing

Top Story: Dufry Morocco and West Africa

22 GULF-AFRICA DUTY FREE & TRAVEL RETAILING NOVEMBER/DECEMBER 2011

The planned Hudson News openings in Morocco are the result ofthe 2008 Hudson Group merger with Dufry. The transactionincluded an exchange of shares of Hudson Group's commonstock into Dufry equity. In simple terms, Dufry now directly owns100% of Hudson Group. At the time of the merger, Hudson Group operated 540 duty-

paid stores in 70 airports and transportation terminals throughoutthe United States and Canada. Of course, Dufry’s plan is to giveHudson News a new global presence. Withtwo stores recently opened in Sharjah Air-port, the Morocco openings are just thebeginning of what will no doubt be a widerrollout worldwide. Commenting in 2008 on the merger of

Dufry and Hudson Group, CEO of DufryJulian Diaz said he was “delighted aboutthis transaction. Hudson sets the standardin duty paid travel retailing. The combina-tion of Hudson's retailing expertise andDufry's know-how in international marketsand global footprint are a perfect match to

create a duty paid news and convenience store concept on an inter-national scale. “Hudson even generates higher returns in duty paid than the

average duty free operation, thanks to its focus on travelers'needs,” continued Diaz. “For Dufry, this transaction is a greatopportunity to build up a strong position in the duty paid conve-nience store segment, which complements Dufry's duty free busi-ness at a similar profitability.”

A match made in heaven

did the sessions cover?TG: There have been a variety of trainingsessions recently. One of them was called“Advertising and Promotion Tool Train-ing.” The purpose was to implement a newtool that will gather all the promotion andadvertising terms and conditions. This newtool will be used by the entire logistic andcommercial department. It will allow easyaccess to statistics and graphics related to allthe promotions.

On the operational side, an important

effort is currently underway by the group toimprove customer service. All our employ-ees went through several trainings sessionsthis year focusing on sales assistance, wel-coming the customers, product knowledge,merchandising and so forth.

GADF: What do you feel is the biggestopportunity for Dufry Morocco and WestAfrica going into 2012? Conversely, whatdo you feel will be the biggest challenge?TG: For 2012, Dufry Morocco and West

Africa has a lot of projects—new store open-ings, including the introduction of the Hud-son News concept, the introduction of newbrands and shop enlargements. All of theseprojects will contribute to further thedynamic development of our business.

At the same time, projects like this arealways a challenge to implement. It is impor-tant that we live up to the high standards thatDufry has set, and I can tell you that the wholeteam at Dufry Morocco and West Africa isvery confident of our success.

c

“The combination of Hudson'sretailing expertise and Dufry'sknow-how in internationalmarkets and global footprintare a perfect match.”

Julian Diaz, CEO, Dufry

Hudson News will be implemented in 8airports throughout Morocco (Pictured isthe first Hudson News location outside

of the US in Puerto Rico)

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him how I could get a job like his. He said, “Start by sweeping the floor,just like I did.”I did an interview and started as a stock room boy at Woolworth’s

on Oxford Street in London. I was with Woolworth’s for seven yearsand went on to become a store manager there.

GADF: When did duty free enter into the picture?CM: While I was still at Woolworth’s I was on holiday in Ireland and I

saw a job advertised in the duty freeat Shannon. I didn’t understand any-thing about it but went and did aninterview. I was offered a job and wentback to Ireland. I started in the duty freebusiness on June 1, 1969.

GADF: What was your position inShannon and how did that job leadto working at Dubai Duty Free?CM: Initially I was the assistant gen-eral manager. A couple of years afterjoining there my boss got a different jobwithin the company and I became the

he duty free industry is replete with storied careers, butperhaps none is more interesting on so many levels thanthat of Dubai Duty Free’s Colm McLoughlin. Gulf-AfricaDuty Free had the opportunity to sit down for an exclu-sive interview with Mr. McLoughlin to learn about his

humble beginnings and trace the nearly three decades long trajec-tory of Dubai Duty Free, an operation that today has the distinctionof being the world’s single largest airport retailer.

Gulf-Africa Duty Free: How did you get started in retail?Colm McLoughlin, Executive Vice Chairman, Dubai Duty Free: WhenI left secondary school I was supposed to go to university to becomea dentist, but I went to England from Ireland for the summer to earnsome pocket money because that’s what all the boys used to do. Iended up staying there, much to the dis-appointment of my father. I did various jobs—I was even a

bus conductor for a while. One day Iwas passing Woolworth’s and I wentin and asked for the manager, a manby the name of Ginger Reed. I asked

T

BY RYAN WHITE

24 GULF-AFRICA DUTY FREE & TRAVEL RETAILING NOVEMBER/DECEMBER 2011

The opening ceremony of the Dubai DutyFree expansion in 1989 with HH Sheikh

Mohammed bin Rashid Al Maktoum, VicePresident and Prime Minister of the UAE andRuler of Dubai; HH Sheikh Ahmed bin SaeedAl Maktoum, President of Dubai Civil Aviation

Authority and Chairman of Dubai Duty Free;Mohi-Din BinHendi; and Colm McLoughlin

“From the very beginning therewas an attitude that quality andgenuineness was the priority.”

Colm McLoughlin, Executive Vice Chairman, Dubai Duty Free

Colm McLoughlin withthe first batch of the

Dubai Duty Freeemployees in 1983

Interview: Colm McLoughlin

Colm McLoughlin being awarded the Duty Free

Personality of the Year award from TFWA in 1986

In his ownwords

Gulf-Africa Duty Free talks to ColmMcLoughlin, one of the industry’s true legends, about his start in duty free over four decades ago and themeteoric rise of Dubai Duty Free

Page 25: Gulf-Africa Duty Free & Travel Retailing

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Page 26: Gulf-Africa Duty Free & Travel Retailing

manager. I was there until 1983, when the two civil aviation depart-ments—the one in Dubai and the one in Ireland—did a contract to setup a duty free operation in Dubai. I was one of a team of ten peoplethat went to Dubai in October of 1983 for six months. During those six months I was asked if I would stay and head up the

operation in Dubai. I agreed to stay for two years, and two of the peo-ple on the original team—John Sutcliffe and George Horan—stayed withme. It’s interesting that the two-year contract was never officially renewedby myself or the government of Dubai, but I’m still here 28 years later!

GADF: What about duty free has remained the same for you overthe years? What has changed?CM: Well, first of all it’s still good fun. Many of the people I knew whenI started are still in the business. Duty free is still very enjoyable for me. In terms of things that have changed, I would say that the indus-

try is a lot more “buzzy.” There’s a lot more marketing now. Ofcourse, the business around the world has gotten considerablylarger. Forty years ago a lot of airports didn’t have duty free opera-tions and now you’d be hard pressed to find many that don’t.Along the lines of the industry getting bigger, if you take Dubai

Duty Free for example, our total business for the year in 1984 wasUS$20 million. Our total business this year will be around US$1.46billion dollars. Additionally, a lot of the rules and regulations have changed along

the way. Customs allowances, prices, tax rules and the like are con-stantly changing. Of course, the range of merchandise in the duty freeindustry and the offer being made to customers has changed con-siderably. In the very early days it was alcohol, cigarettes and maybeperfumes. Now shoppers have a much greater selection, includingelectronics and destination merchandise. Years ago many countries didn’t have arrivals duty free, whereas

arrivals in many airports now form an important part of travel retail.In Dubai Duty Free, for example, arrivals accounts for 8% of our sales.In our case, 8% is more than a US$100 million, so it’s significant. Duty free has really made a full circle. At one stage the duty free

industry really lost the value aspect for shoppers. People saw thatand it affected the business. It’s turned around now and offers somegreat savings to the people who travel.

GADF: Given the changes in the industry over the years, I’m sureyour priorities have changed somewhat. What are your priori-ties these days?CM: The top of Dubai Duty Free’s list is to continue to be seen as

26 GULF-AFRICA DUTY FREE & TRAVEL RETAILING NOVEMBER/DECEMBER 2011

a high-quality operation—full of integrity, hard-work andcustomer service. It goes without saying that it’s alsohigh up our list to promote the airport and Dubai itself.When we started the business we had 100 staff.

We still have 52 of that original group working for us28 years later. Dubai Duty Free has a good reputationfor minding our staff, and we consider the welfare ofour people a very important aspect of our business,which ensures that they’re committed and that they’reas keen on the business as I am. We have 4,000people working at Dubai Duty Free and many of themhave been with us for ten or fifteen years.

GADF: Did you have any idea that Dubai DutyFree would grow to the size it is today when youstarted out?CM: We knew it would be very good. If we were asked

to predict at that time that we would be the biggest in the world, weprobably wouldn’t have said so. What we would have said is that wewould be the best in the world. From the very beginning there was anattitude that quality and genuineness was the priority. When we started, the traffic through Dubai Airport was about 3.5

million people. The traffic last year was 47 million and this year it willbe about 51 million. When we started there was no Emirates Airline,whereas last year Emirates carried 29 million of those 47 million pas-sengers. If you had asked us when we started, we couldn’t have pre-dicted the explosion in passenger numbers.Along with the rise in passengers, it’s important to note that our

penetration rate is very high. In many airports, good duty free oper-ations regularly achieve penetration of 18 to 20%. Our penetrationis just touching 50%. This comes down to being in a great locationin the airport, having excellent customer service, offering good valueand doing a lot of promotion.

GADF: You recently changed posts at Dubai Duty Free, movingfrom Managing Director to Executive Vice Chairman. On a day-to-day basis, what’s changed for you?CM: I’m a long time in the business and we need to get young peo-ple into the position. It’s the same team but positions have been movedaround. For me, I think a bit more about where we’re going and whatwe’re doing in the larger sense. A lot of the day-to-day operations—the signing, the approvals and so on—will be passed on.

GADF: What are you most proud of?CM: I’m very happy that Dubai Duty Free has become what it is andhas the reputation that it does. I’m pleased that it’s been such a suc-cessful business. I’m also very happy that the President of Dubai Air-ports Company H.H. Sheikh Ahmed bin Saeed Al Maktoum hasbeen so supportive.Naturally, I’m very happy that Dubai Duty Free has won 250 indi-

vidual awards for excellence. I’m also very happy that 8 years agowe set up our own charitable foundation and regularly support char-ities around the world. Being the managing director for many years, I’ve also personally

been given many awards. Of course, it really has much more to dowith the team as a whole than it does myself. We’re a high-qualityoperation and the only way to sustain this type of business is to havea solid foundation of hardworking staff that has customer service asthe top priority. Our people are and always will be the key to DubaiDuty Free’s success. c

The original Irish Trinity: Colm McLoughlin (center), GeorgeHoran (left) and John Sutcliffe (right) pictured in 2009

Interview: Colm McLoughlin

Page 27: Gulf-Africa Duty Free & Travel Retailing

T

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Page 28: Gulf-Africa Duty Free & Travel Retailing

Snowball effect

28 GULF-AFRICA DUTY FREE & TRAVEL RETAILING NOVEMBER/DECEMBER 2011

here that are considering a Hudson News intheir facilities,” van der Veen explains.

This latest development is the result of the2008 Hudson Group merger with Dufry.The transaction included an exchange ofshares of Hudson Group's common stockinto Dufry equity. In simple terms, Dufry nowdirectly owns 100% of Hudson.

At the time of the merger, Hudson Groupoperated 540 duty-paid stores in 70 airportsand transportation terminals throughoutthe United States and Canada. Of course,Dufry is set to give Hudson News a newglobal presence, and the opening of the twostores in Sharjah Airport is essentially an earlytaste of what will eventually be a wider roll-out worldwide.

The new Hudson News locations takeup approximately 260-square-meters in

Sharjah Airport and feature the same cus-tom-developed concession programs andtrend-setting store concepts for which Hud-son Group is known. Hudson News’ mix ofnationally recognized brands and qualitylocal products, in combination with a dis-tinctly customer-centric business philoso-phy, are sure to prove popular in Sharjah.

No stranger to putting customers first,Dufry has a database that provides regionalDufry-owned stores with useful information

on consumer trends throughout its world-wide operations. The folks at Dufry Sharjahregularly consult this information system asa means of tailoring the product mix andpricing to the passengers that are shoppingin their stores.

“Continuous changes in the passengerprofile, because of additional destinations orcharter flights, are immediately reactedupon,” explains van der Veen. “For example,we cater to many Russian passengers. Thesetravelers tend to spend more than passen-gers from, say, Nepal, who also shop at ourstores. It’s very important to have detailedinformation about purchasing habits of agiven group of consumers.”

The future looks bright for both DufrySharjah and the airport itself. A new termi-nal is planned to handle increased passen-ger numbers and a second runway is alreadyunder construction. In the meantime,though, there’s plenty of positive news to con-tend with. September inbound passengertraffic was the highest of any month thisyear and total passenger traffic for the samemonth stood at 537,472 travelers. This rep-resents a year-on-year increase of nearly 5%over total traffic statistics for the same monthlast year, when the airport serviced a total of512,409 passengers.

For van der Veen’s part, he’s pleased withwhat he’s seen at Sharjah, especially con-sidering the fact that travel has declinedconsiderably in some pockets of the MiddleEast due to unrest. “The impact of the socialand political crises in North Africa and theMiddle East on Dufry Sharjah is limited,” heexplains. “There were some flight cancella-tions, but in general Sharjah Airport and ouroperations were not directly impacted.

“In general, we have witnessed positivepassenger figures in Sharjah Airport in 2011,which is also reflected in our performanceto date,” he concluded. c

ome small changes can make abig difference. Just ask Erik vander Veen, Deputy COO of DufrySharjah. The company recentlygot creative with the layout of

its main store at Sharjah International Air-port by moving the cash points in order tocreate additional space in the shop’s food sec-tion. The space that was freed up can alsobe used for promotional activities.

“We ran a successful scratch and winpromotion which triggered increasing pen-etration,” van der Veen told Gulf-AfricaDuty Free. Along with the scratch and wininitiative, the operator ran another pro-motion that invited customers to make a fol-low-up purchase for rewards. He says thatthe combination of the two “worked out verypositively.”

Another change that Dufry Sharjah madethis year, although not nearly as small asthe one above, was the opening of two Hud-son News locations. The operator’s land-side departures convenience and luggageshop was converted into one of the HudsonNews locations, while the arrivals shop wasconverted into the second. Notably, theseshops mark the first Hudson News loca-tions in the region and serve as “nice con-tact points in the Middle East for airports

S

“In general, we have witnessed positive pas-senger figures in SharjahAirport in 2011, which is also reflected in ourperformance to date.”Erik van der Veen, Deputy COO, Dufry Sharjah

Renovations to the main store, the opening of two Hudson News locations and positive September passenger numbers bode well for Dufry Sharjah as the year winds down BY RYAN WHITE

Operator News: Sharjah Duty FreeEarlier this year Dufry Sharjah’s landside

departures convenience and luggage shop wasconverted into one Hudson News location, while

the arrivals shop was converted into a second(Pictured is the first Hudson News location

outside of the US in Puerto Rico)

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Standing strong

Operator News: Bahrain Duty Free

30 GULF-AFRICA DUTY FREE & TRAVEL RETAILING NOVEMBER/DECEMBER 2011

of being a truly customer-focused travel retailcompany, being a great place to work and beingthe premier travel retailer in the Middle East.

Coogan also touched on BDF’s purpose:to win and keep customers by offering thebest of Bahraini hospitality and a simplybetter shopping experience. “I am very for-tunate that there is an experienced team inplace that understands and appreciatesBahrain Duty Free revisiting our vision,purpose and values,” Coogan says. “I amvery confident going forward together we willlive our values throughout the organiza-tion to achieve our vision of becoming a cus-tomer-focused travel retail company.”

Making it happenOne concrete way BDF is improving serviceis through its online interactions with trav-elers. As part of its three-year strategy, thecompany will be updating its website, incor-porating smart phone-friendly applicationsand delving deeper into social media.

While the above plans are still in the works,another more immediate way that BDF isinteracting with consumers is through pro-motional activities. The operator’s bestsellingcategories continue to be duty free staples suchas perfumes and cosmetics, liquor, tobacco andconfectionery. Promotional campaigns have

centered on these key categories and the lat-est initiative, called Autumn Specials, usessignage around the stores to communicate thesavings often associated with shopping dutyfree over downtown stores. Recent popularpromotions have included “Buy 2, Get 1 Free”offers, says Coogan.

BDF will also release a brand new in-flight catalogue in cooperation with BahrainAir this month. Coogan tells us that a “wholenew range of products” will be available forin-flight purchase aboard the carrier.

Upcoming opportunitiesBahrain Airport Company is currently plan-ning an extension of the current airportterminal. The project is scheduled to startmid-2012 with a planned completion dateof early 2014. Needless to say, retail space will

be available in the new area of the airportand the opportunities for BDF in this regardare significant.

“Bahrain Airport Company is a very sup-portive partner that understands fully theadded value an excellent duty free experiencecan bring to Bahrain International Airport,”Coogan says. “Accordingly, we are in dis-cussions with them about major changesto the duty free offer in the terminal. Thisis a major opportunity for Bahrain DutyFree to upgrade its offer to the customerand to achieve its vision of becoming the pre-mier travel retailer in the Middle East.” c

eneral Manager of BahrainDuty Free (BDF) GarrettCoogan doesn’t mincewords when he says that2011 “has been a difficult

year for Bahrain Duty Free.” Despite socialand political unrest in the Kingdom that ishome to over 1 million people, it’s clearfrom speaking with Coogan for any lengthof time that BDF sees the current difficul-ties as a chance to make some positivechanges on the shop floor.

The company is currently taking stock bylooking at what’s working and what isn’t inorder to make improvements aimed at serv-ing the customer better and increasing sales.In fact, seeing as the company has alwaysplaced great emphasis on continually evolv-ing essentially every aspect of its operationto better cater to travelers, it’s no stretch tosay that despite external circumstances it’s“business as usual,” as Coogan says, for BDF.

“Between the challenging environmentand with key management changes BDF isbusy reviewing its business processes withthe goal of ensuring we are implementingthe most effective and efficient work prac-tices,” Coogan tells Gulf-Africa Duty Free.“While at the same time under the goal ofbecoming a truly ‘service excellence’ duty freecompany we have revisited the BDF strat-egy, purpose, vision and values which havebeen introduced under the banner ‘ForwardTogether’ to all of our teams.”

Earlier this year BDF held a special staffgathering at the Regency Inter ContinentalHotel, where Coogan revealed the company’snew vision, purpose and values. The eventwas segmented into two sessions and wasattended by over 250 staff members. Key top-ics discussed included the operator’s vision

GBahrain Duty Free sharpens its focus on customer service, finding no shortage of inspiration during what General ManagerGarrett Coogan calls “a difficult year” BY RYAN WHITE

“We have revisited the BDF strat-egy, purpose, vision and valueswhich have been introducedunder the banner ‘ForwardTogether’ to all of our teams.”Garrett Coogan, General Manager, Bahrain Duty Free

Bahrain Duty Free has a new vision,purpose and values, and central to all

three is the customer

Page 31: Gulf-Africa Duty Free & Travel Retailing

Success in ITR comes in many colours.

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

Page 32: Gulf-Africa Duty Free & Travel Retailing

Good, better, best

Operator News: Dubai Airports

32 GULF-AFRICA DUTY FREE & TRAVEL RETAILING NOVEMBER/DECEMBER 2011

ubai Airports recently releasedDubai International’s monthlytraffic report for September,which shows a year-on-yeargrowth of 6.2% in passenger

numbers. Traffic in September reached4,236,587 travelers, up 6.2% compared to the3,988,804 recorded during the same monthin 2010. Year-to-date traffic reached37,547,744, an increase of 7.8% over thecorresponding period in 2010.

The AGCC recorded the largest increasein total passenger numbers in September(+169,445), followed by Western Europe(+36,916), the Indian subcontinent (+29,261)and Russia and the CIS (+23,431). The con-traction in traffic on Middle Eastern routescontinued in September (-53,368 passengers),while traffic on African routes was downslightly (-2,048 passengers).

The strongest markets in terms of per-centage passenger growth were Russia (+33.9%)driven by flydubai expansion in the region, theGCC (+31.9%) as a result of growth in traf-fic to Saudi Arabia, Eastern Europe (+18.7%)and North America (+17.6%) as both demandand capacity increased on routes to Los Ange-les, Houston and New York.

“We have had a good year so far in termsof passenger traffic and with the Islamic pil-grimage of Hajj just a few days away, we expectto see already robust passenger numbers surge

over the coming weeks,” said Dubai AirportsCEO Paul Griffiths in a news release at presstime. “Customer service is always a top pri-ority for us and we are well prepared to ensuresmooth passenger flow across our terminalsduring Hajj. Like every year, Dubai Airportsalong with other stakeholders will implementa number of special measures such as deploy-ing additional personnel and dedicated pass-port control counters to facilitate the move-ment of thousands of pilgrims who passthrough Dubai International.”

Creature comfortsAs if passengers needed another reason to flythrough Dubai International Airport, DubaiAirports recently announced that it has becomethe first airport in the region to introducestate-of-the-art modular sleeping pods thatoffer travelers comfort, privacy, entertain-ment and connectivity. Called the SnoozeCube,each of the accommodation units contains afull-sized bed, a touch-screen television offer-ing a selection of entertainment and music,as well as high speed internet access.

The units are connected to the airport’sflight information system to ensure thatamidst the rest and relaxation, passengers donot miss their flights. As many as ten of thesound-proofed units have been installedadjacent to Gate 122 at Dubai International’sTerminal 1 and are already proving to be a

major attraction. During the pilot phase,the SnoozeCube has been an instant hitwith passengers at Dubai International, par-ticularly among transfer/transit passengerswith shorter layover times. It can be used onan hourly basis with rates starting fromAED 65 (approx. US$ 17.80) per hour for thefirst four hours.

Lucky number 3Dubai Airports is also in the midst of a pro-ject to build the world’s largest airside facil-ity dedicated to the Airbus A380. The airportauthority recently reached out to world-class food and beverage operators and ser-vice providers to submit expressions of inter-est for providing services at the upcomingConcourse 3.

A part of the Terminal 3 complex dedicatedfor use by Emirates Airline, Concourse 3 willincrease Dubai International’s total passengercapacity from the current 60 million perannum to 75 million passengers. It repre-sents an important part of the airport’s infra-structure expansion plan that is driven byrising passenger numbers, which are expectedto reach 51 million in 2011. Dubai Interna-tional is expected to achieve a cumulativeannual growth rate of 7.2%, outstripping theindustry average forecast of around 5%, andin the process taking the top spot as the busiesthub for international passengers by 2015. c

D

“Customer serviceis always a top priority for us.”

Paul Griffiths, CEO, Dubai Airports

Larry Swann, creator of SnoozeCube (left), and Steve Jones, NewZealand Trade Commissioner for Middle East, Africa and Pakistan

Dubai Airport’s passenger numbers rise year over year even as it continues to implement innovations unlike any others present in the Middle East BY RYAN WHITE

Page 33: Gulf-Africa Duty Free & Travel Retailing

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Page 34: Gulf-Africa Duty Free & Travel Retailing

About 80% of MiddleEast Airlines’ passengers

are LebaneseOperator News: Middle East Airlines

34 GULF-AFRICA DUTY FREE & TRAVEL RETAILING NOVEMBER/DECEMBER 2011

the planes. Middle East Airlines hasa reputation for offering the besthigh-end merchandise and the cat-alogues are constantly being updatedwith the latest hot items.

Bestsellers include LVMH fra-grances, Jimmy Choo scents andSwarovski Aura. Seifeddine told usthat in the space of ten days it’s notuncommon for his team to move twoor three hundred units of the aboveproducts alone.

Middle East Airlines has alsobecome known as a benchmark forselling super-premium whiskies inflight. While Johnnie Walker BlackLabel accounts for a whopping 80%or so of total liquor sales, passen-gers can also find luxury spirits suchas Johnnie Walker Blue and GoldLabel, Royal Salute and Dewar’s Sig-nature. In fact, he cites the growth inpopularity of super-premium spir-its as one of the most exciting trendshe’s witnessed this year.

Seifeddine notes that passengersdidn’t just begin to spend morespontaneously. Rather, it was a question ofMiddle East Airlines first identifying anopportunity and then taking steps to capi-talize on it. “As a Lebanese company we arevery familiar with our main clientele,” henotes. “Lebanese travelers make up about80% of our customers, with 15% comingfrom the Gulf and the other 5% from Europe.”

Middle East Airlines knew that Lebanesetravelers loved to purchase luxury items,and from that point it was a matter of tai-loring the in-flight offering accordingly andtraining the salespeople in order to givethem strong product knowledge across cat-egories. Like any well laid plain, the rest justfell into place.

“It is very important to know howto sell to a particular passenger pro-file, and this is where training andexperience comes in,” Seifeddine con-cludes. “When it comes to purchas-ing high-end items especially, pas-sengers want to be treated well anddeal with a salesperson that has adepth and breadth of knowledge notonly about the product, but about theentire category of interest.

“Luxury items and unrivaled ser-vice—without both the equationdoesn’t work.” c

n the first half of 2011 Middle East Air-lines saw an 11.3% increase in onboardduty free sales as compared to the pre-vious year. Furthermore, the carrierreports that about 15% of its revenue is

derived from duty free sales—considerablyhigher than most other carriers. Gulf-AfricaDuty Free spoke with Mounir Seifeddine,Head of Cabin Purchases at Middle East Air-lines, to learn what he and his team are doingright to keep sales on the upswing. He told usin no uncertain terms that staff training, a sta-ble of high-end items and a keen knowledgeof passenger preferences is what is keeping Mid-dle East Airlines ahead of the competition.

“We always try to discuss our onboardduty free sales in light of overall passengernumbers,” says Seifeddine. “This is the onlyway we can really gauge if we’re stayingahead of the game.”

Indeed, onboard sales in the first halfwere marginally ahead of the carrier’s 10%increase in passengers. Average spend forthe first half of this year, which stands atabout US$12, is also just slightly above thefigure for the first half of 2010. Certainly, giventhe social and political unrest in some partsof the region this year, Middle East Airlines’achievements are undoubtedly commendable.

When asked about how he manages tokeep sales up, Seifeddine cites staff trainingand incentive programs as indispensabletools: “Across categories we offer some veryattractive incentives to our in-flight salesstaff,” he explains. “We make sure that ifsomeone is selling well, the commission theysee makes a difference to them. If you sell wellfor an entire month and you only have acouple of dollars extra on your paycheque atthe end of the month, there’s not much pointin putting work into selling onboard.”

The second piece of puzzle as Seifeddinesees it is having the right product mix onboard

I

Swarovski Aura has been a bestseller thisyear onboard Middle East Airlines flights

Raisingthe barMiddle East Airlines has done particularly wellfor itself this year in terms of onboard duty freesales due to its concentration on offering morechoice and only the best products BY RYAN WHITE

Johnnie Walker Black Label accounts for about80% of total liquor sales onboard Middle EastAirlines, but the carrier is noticing a promisingtrend toward super-premium spirits

Page 35: Gulf-Africa Duty Free & Travel Retailing

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Page 36: Gulf-Africa Duty Free & Travel Retailing

From humble beginnings

Operator News: Aldeasa Kuwait

36 GULF-AFRICA DUTY FREE & TRAVEL RETAILING NOVEMBER/DECEMBER 2011

Duty Free, CEO of Aldeasa Kuwait HassanShishani spoke about what travelers inKuwait International Airport can expect interms of promotional activity. He also con-firmed that the company is planning onopening a new store during the second halfof the year. The location will measure 140-square-meters and offer products from tra-ditional duty free categories such as P&C,tobacco and confectionery.

“Kuwait International Airport is cur-rently building an extension that will seefour gates added,” Shishani says. “The storewill be opened in the coming months, butan exact date hasn’t yet been specified.”

Shishani tells us that the socio-political

situation has been “difficult” this year. As aresult, the company continues to concentrateon keeping promotions and product mix inthe existing stores predominantly gearedtoward high spenders such as Indians andEgyptians traveling to Kuwait for both busi-ness and pleasure.

Aldeasa Kuwait recently ran a scratch andwin promotion sponsored by Hugo Boss.Across locations in Kuwait Airport, travelerswho spend a minimum of KD 35 (US$126)in P&C or KD 20 (US$72) in confectionery,toys, watches, leather goods, sunglasses,tobacco and/or costume jewelry will receivea scratch card. Grand prizes included two 24-karat gold tolas (a unit of measurementequal to 11.6 g), one for each existing store.

Just as important to Aldeasa Kuwait asrunning noteworthy promotions are thepartnerships it fosters with suppliers. Infact, Shishani asserts that the company’srelationships with its supplier partners areoften the catalyst for new special offers.

“Thanks to our close relationship withsuppliers, we can offer our customers pro-motions on star products on a regular basis,”he says. “Needless to say, it’s essential to worktogether with suppliers in order to offer thebest products at competitive prices.” c

ldeasa Kuwait has a number ofoperations in Kuwait Interna-tional Airport: two Bye Byeshops near the gates that con-tain bestselling products from

various categories; one gold store; one loca-tion that sells dried fruits; one per-fumery/boutique shop; and one generalstore. While the retail spaces themselves andthe products contained within each varygreatly, one thing that remains the sameacross all of the company’s operations inthe airport is the importance that Aldeasaplaces on developing innovative promo-tions in conjunction with suppliers.

In a recent interview with Gulf-Africa

A

“Kuwait International Airport iscurrently building an extensionthat will see four gates added.The store will be opened in thecoming months, but an exactdate hasn’t yet been specified.”

Hassan Shishani, CEO, Aldeasa Kuwait

Building relationshipsWith a new store opening planned and business doing well, Aldeasa Kuwait says it owes it all to the strong bonds it has developed with suppliers and shoppers alike BY RYAN WHITE

Aldeasa has its roots in 1974, when the company first came tobe. In 1976 Aldeasa opened shops in Spain’s major airports andsince that time has continued to grow. Today, Aldeasa is one ofthe leading airport retail operators in the world and is part of theAutogrill Group. It has a wide retail portfolio in both Spanish andinternational airports, as well as historic and cultural sites.With the acquisition of Aldeasa, World Duty Free and Alpha

Group, Autogrill started an integration process of its retail oper-

ations in order to develop synergies through efficiency initiativesacross the Group. As a result of this process, Aldeasa has pro-gressively taken over the Alpha Retail International activities.Aldeasa has focused on international expansion since 1994,

and the company is active in 20 countries, operating nearly 250shops. The integration process of Alpha Retail International, a busi-ness unit with operations in five countries, effectively consolidatesthe Group as the leading airport retail operator on both continents.

Page 37: Gulf-Africa Duty Free & Travel Retailing

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Page 38: Gulf-Africa Duty Free & Travel Retailing

Operator News: Hamila Duty Free

Tunisair and Nouvelair websites. “We actu-ally prepared ahead of time to try to offsetany major problems that could affect our dutyfree business,” Mahjoub explains. “Fortu-nately this helped quite a bit with sales.”

Hamila concentrated on scaled promo-tions this summer, with travelers savingmore when they bought more. Cigarettes,spirits, and perfumes were key focus cate-gories. Brands from Pernod Ricard, Dia-geo, Philip Morris, Heineken, Pacific Creationand P&G were just some of the many items

on offer. For Ramadan, Hamila took muchthe same approach to its promotional activ-ities, although the initiative obviously did-n’t extend to the spirits category.

Despite recent hardships, Hamila DutyFree remains positive in its outlook. “SinceJune we’ve seen an increase in the numberof Libyan and Algerian visitors to Tunisia,”says Mahjoub. “This does, however, tend tobenefit the local market more than dutyfree. Despite an overall dip in tourism, thisis at least one positive sign that we can onlyhope will mean an eventual increase in othertravelers to the country.” c

The state of affairsThe depth and breadth of the challenges that companies like Hamila are currently fac-ing was recently illustrated by Director General of the Tunisian National Tourism Board(ONTT) Habib Ammar. He reported a “lack of visibility” for the next period of the touristseason, blaming this vagueness on the lack of accurate tourism-related information. Ammar said last-minute bookings will be crucial to revive Tunisian tourism, par-

ticularly given the positive effect that the ousting of Moammar Gaddafi in Libya isexpected to have on neighboring Tunisia. He said operations to promote Tunisia asa tourist destination will focus on new and promising sectors such as cultural tourism,thalassotherapy (the use of seawater as a form of therapy) and Saharan tourism.He also announced that talks are underway for the amicable termination of pro-

motional contracts signed between the ONTT and foreign companies, saying thatfrom this point on priority will be given to Tunisian companies, presumably to helpmitigate job losses in the country. To August 20, 2011, tourist arrivals to Tunisia reached 2.771 million tourists

compared with 4.539 million during the same period in 2010. This represents a stag-gering drop of 38.9%. As for total overnight stays, hotel occupancy fell by 46.3% to August 20, repre-

senting 1,210.3 million Tunisian dinars (US$885.6 million) compared with 2,155million Tunisian dinars (US$1.57 billion) in 2010Twenty-four hotels representing 7,544 beds have been closed since January 14, result-

ing in the loss of 3,019 jobs. The decline in tourism also resulted in the elimination of asignificant number of seasonal jobs, particularly in tourist regions most hit by the crisis.

amila Duty Free Marketing Direc-tor Karim Mahjoub calls July “themost important of the year.”Indeed, sales during the monthgenerally represent a significant

portion of the company’s total yearly turnover.Unfortunately, in addition to the politicaland social issues in Tunisia and neighboringLibya, Hamila was hit with another chal-lenge—strikes at Tunise Catering.

“Tunise Catering handles our onboardtrolleys,” Mahjoub explains. “Their employ-ees were on strike for approximately fourmonths. Furthermore, decreases in monthlypassenger numbers to July 2011 sometimesdipped as low as -50%.”

Despite these challenges, Hamila DutyFree’s diversified offering—the companysells duty free onboard Tunisair and Nou-velair, on ferries and in numerous land-based stores—helped the operator reach itsgoals for the month. Spend per headincreased 3% on the ferries, 11% on Tuni-sair and 13% in the company’s port shops.

Hamila did its part to try to help salesalong this past summer with a promotionalaction plan that was customized based on thetype of traveler—airline or maritime. Hamilainvested in targeted and aggressive com-munication to make sure that passengersknew what was on offer. The plan includeddistribution of flyers at ports, catalogueson each chair in the ferries and ample mag-azines in aircraft cabins.

The operator went one step further thisyear by publishing online catalogues on both

H

Fortunately for Hamila Duty Free, its diversifiedbusiness helped offset dips in sales (pictured isone of the company’s stores at Enfidha Airport)

Hamila Duty Free continues to register a series small of victoriesin the face of declining tourist numbers in Tunisia BY RYAN WHITE

Fighting the good fight

38 GULF-AFRICA DUTY FREE & TRAVEL RETAILING NOVEMBER/DECEMBER 2011

Page 39: Gulf-Africa Duty Free & Travel Retailing

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Page 40: Gulf-Africa Duty Free & Travel Retailing

A new direction

40 GULF-AFRICA DUTY FREE & TRAVEL RETAILING NOVEMBER/DECEMBER 2011

website. DXB Connect cardholders can accesstheir card balance through IVR, SMS,www.dxbconnect.com and at card activa-tion touch points at Dubai International.

The Etisalat prepaid SIM and the DXBConnect prepaid cards are instantly acti-vated at multiple card activation touch pointsacross the airport. This is the first time in theworld where a prepaid MasterCard and pre-paid mobile SIM have been integrated intoa single package for customer convenience.

The DXB Connect card provides card-holders with the ability to better managetheir finances as they are not able to spendbeyond the pre-paid balance amount storedon the card. It is PIN enabled for ATM useand requires cardholders to provide a sig-nature at point of sale terminals. Addition-ally, like a credit card, it can be cancelled,blocked and re-issued.

“Our goal is to continually find innova-tive ways to create a uniquely positive andmemorable service experience for our pas-sengers,” said Paul Griffiths, CEO of DubaiAirports. “Much like the airport itself, theDXB Connect card ticks all the boxes byoffering our customers global reach, greaterconvenience and tremendous value.”

“We are very excited about the DXB Con-nect card and have enjoyed working withDubai Airports and MasterCard on makingit all come together,” said Colm McLough-lin, Executive Vice Chairman, Dubai DutyFree. “The DXB Connect card will offertravelers tremendous opportunities to availof a pre-paid card that is easy to purchaseat Dubai Duty Free and quickly activated. Ithink that it is going to be very popular with

a diverse mix of travelers.”“As the world’s first dedicated airport

prepaid card, the DXB Connect ushers in anew era of convenience customized for trav-elers visiting the UAE,” said Ramzy Al Amary,Vice President – Abu Dhabi District Manager,MasterCard Worldwide. “DXB Connect card-holders will be powered with the ability toinstantly buy, load, activate and use theirprepaid cards at the airport and across ourglobal network of 32.7 million acceptancelocations. The DXB Connect card providestravelers the advantage of carrying a mode ofpayment which requires no bank account orannual fees and is more flexible than cash.”

The global e-commerce industry is grow-ing quickly, with sales turnover increasingfrom US$183 billion in 2004 to an estimatedUS$550 billion by the end of this year. Sim-ilarly, the global duty free industry is on therise with sales turnover increasing some56% from US$25 billion in 2004 to US$39billion in 2010. c

ubai Airports, Dubai Duty Freeand MasterCard Worldwiderecently announced the launchof DXB Connect, the world’sfirst airport prepaid Master-

Card card aimed primarily at airport clien-tele. Operated on the MasterCard networkand issued by Abu Dhabi Commercial Bank(ADCB) in conjunction with Jade Paymentsand Global Processing Services, the DXBConnect card offers over 50 million pas-sengers annually traveling through DubaiInternational a convenient and safe methodto make airport purchases in local currency(AED).

DXB Connect offers arriving, departingand transiting passengers exclusive discountsat Dubai Duty Free retail outlets, as well asat renowned hotels, spas, F&B outlets andfamily entertainment venues across Dubai.It also offers global reach as it is acceptedeverywhere the MasterCard acceptance markis displayed. As part of the package, the cardalso comes with a ready to use Etisalat mobileSIM preloaded with an AED 25 credit allow-ing travelers the convenience of having alocal phone number on arrival.

DXB Connect cards can be purchased fora one-time fee of AED 95 (US$26) and imme-diately activated at dedicated card activationstands operated by Dubai Duty Free acrossall three terminals at Dubai International.Travelers are able to select the amount theywish to load onto the card when activatingit. The card can be topped up at specified loca-tions in the airport and very soon also throughall Virgin Megastores, UAE Exchange outletsin UAE and online via the DXB Connect

D"We are veryexcited about theDXB Connect cardand have enjoyedworking withDubai Airportsand MasterCardon making it allcome together,”Colm McLoughlin, Executive Vice

Chairman, Dubai Duty Free

DXB Connect offers passengers exclusivediscounts at Dubai Duty Free, as well as atrenowned hotels, spas, F&B outlets and

family entertainment venues across Dubai

Dubai Duty Free, in cooperation with Dubai Airports and MasterCard, offers travelers a new way to pay BY RYAN WHITE

Operator News: Dubai Airports and Dubai Duty Free

Page 41: Gulf-Africa Duty Free & Travel Retailing

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Page 42: Gulf-Africa Duty Free & Travel Retailing

Operator News: dcav8

42 GULF-AFRICA DUTY FREE & TRAVEL RETAILING NOVEMBER/DECEMBER 2011

tive retail strategies can only be developedwith a firm understanding of what motivatesshoppers. Of course, this is where a detailedexamination of the traveler’s entire jour-ney comes into play.

“For example, we recognize that thebehavior of a business traveler will be sig-nificantly different from someone travel-ing with their family,” explains Mills. “Thefocus of our work is to show retailers andbrands how they can capture these travel-ers with targeted retail activations at definedtouch points throughout the journey.”

Putting theory into practiceOver the course of the last two years, dcav8has become Swiss-based Nestlé InternationalTravel Retail’s dedicated shopper marketingand design agency. dcav8 recently worked withthe confectionery giant on a project dubbed“The Perfect Store.” The initiative is ground-

breaking not just in terms of its concept ofcreating a perfect store environment for con-fectionery, but also because Nestlé has takena leadership position beyond confectionery.

“The Perfect Store targets non-confec-tionery shoppers and confectionery shop-pers alike in a much more holistic way withsolutions that are built entirely on shopperintelligence conducted from studies overthe last twelve months,” Mills explains. “By

extension, this is something that will certainlyhelp all retailers in terms of drawing con-sumers to a specific category.”

dcav8 is also currently in talks with variousairports throughout the Middle East aboutdeveloping a series of activations. One idea cur-rently on the table is called the “RehydrationCenter.” The project will involve perfumesand cosmetics brands and will engage transitpassengers moving between the east and west.The Rehydration Center will provide a suiteof services aimed at building airport loyalty.

“We want passengers to think, ‘When Itravel, I want to pass through this airport,’”says Mills. “The concept is about refreshment,relaxing and well-being. It is important tonote that the Rehydration Center is notmerely an idea, but rather it is a projectbased on actual insight – MENA has alwaysbeen the platform for innovation and boldnew initiatives such as this.”

Another exciting new venture dcav8 isworking on as appointed creative agencyfor Trunki is to launch the world’s firstTrunki store. Mills believes there is an oppor-tunity to create more engagement oppor-tunities for children to have fun and parentsto feel relaxed while traveling.

“Trunki is a stunning product that israpidly expanding globally, and they haveapproached dcav8 to help put it firmly in theglobal shop window,” Mills says. “dcav8 hasdeveloped a truly spectacular retail conceptwhich we plan to unveil in the coming weeks.”

To start the launch with Trunki, dcav8 islooking to partner with a retailer and airportauthority to unveil the world’s largest Trunki,which also offers playground facility andretailing from the concourse.

“It’s about working together to create a trulyunique experience,” concludes Mills. “It’s alsoabout numerous brands collaborating underone umbrella to entice travelers to becomeinvolved in something different which theymay have otherwise passed by. We’re lookingforward to implementing these and manyother groundbreaking projects in 2012.” c

ulf-Africa Duty Free recently hadthe opportunity to speak withManaging Director of dcav8 HugoMills about new developments atthe company. Most recently, Fred

Freeman-Edmondson was brought onboardas Global Shopper Activation Director. Free-man-Edmondson will be driving the retailstore activation element of dcav8’s business,having advised some of the largest and mostinfluential global brand and retailers includ-ing Diageo, United Biscuits, Coke, M&S andTesco in shopper led strategy and activation.

“This is a real statement of intent aboutwhere dcav8 is looking to go,” says Mills ofFreeman-Edmondson’s appointment. “We’relooking to bring something that no one elsein travel retail really has, which is a verydetailed understanding of shopper motiva-tions and the way that retailers can suc-cessfully target those motivations.”

Indeed, most operators concentrate almostsolely on in-store activations and commu-nications because it is such an importanttouchstone in the trajectory of a traveler’s jour-ney. However, Mills tells us that there areinnumerable untapped possibilities bothbefore and after passengers arrive at a store.

dcav8 is in the midst of conducting sometruly groundbreaking traveler profiling andsegmenting. The theory is that truly effec-

G

Ideas led by insightGulf-Africa Duty Free speaks with Managing Director of dcav8Hugo Mills about how important it is to get operators thinkingoutside the box—and outside the store BY RYAN WHITE

“ The focus of our work is to showretailers and brands how they cancapture travelers with targeted retailactivations at defined touch pointsthroughout the journey.”

Hugo Mills, Managing Director, dcav8

The world’s largest Trunki, a projectdcav8 is currently working on, will

offer a playground facility andretailing from the concourse

Page 43: Gulf-Africa Duty Free & Travel Retailing
Page 44: Gulf-Africa Duty Free & Travel Retailing

Industry News

44 GULF-AFRICA DUTY FREE & TRAVEL RETAILING NOVEMBER/DECEMBER 2011

assenger traffic across the MENA region was a mixedbag of sorts in August, with Africa performing poorly andthe Middle East maintaining steady growth. While fig-ures often vary slightly depending on the organization,Airports Council International (ACI), the International Air

Transport Association (IATA) and the UAE’s General Civil AviationAuthority (GCAA) all pointed to moderate growth in the MiddleEast. A worrying statistic, however, is that both ACI and IATA haveAfrica in the red and note that worldwide increases in passengernumbers have weakened. According to the most recent data available at press time, ACI

statistics indicate that 2.9% more passengers passed through air-ports worldwide in August 2011 compared to a year earlier. Inter-national traffic grew by 4.3%, whereas domestic passengers increasedmoderately at 1.7%.Unfortunately, the modest increases seen in many areas of the

world didn’t extend to North Africa. ACI noted that Africa continuesto represent “a significant drag on international passenger numbers”as confidence in North Africa as a safe tourist destination, especiallyin Tunisia and Egypt, has not been restored yet. According to ACIthe region declined by 15% in August, while the more significant inter-national passenger segment dropped by over 20%.In the Middle East, however, the situation was much different.

ACI reported a 9.2% increase in total traffic across its Middle Eastairports as compared to the same month in 2010. ACI’s figure echoed the August 2011 statistics released by the

UAE’s General Civil Aviation Authority (GCAA). During the month, GCAAairports recorded a 4.8% increase in traffic movements comparedto August 2011. Movements totaled 56,100 at an average of 1,810air traffic movements each day.

Not surprisingly, Dubai came in first place with 24,934 trafficmovements. Over flights stood next 12,959 movements. Abu Dhabiwas in third place with 8,443 air traffic movements. Sharjah Airportranked fourth with 5,124 movements. Local flights between UAE airports took the fifth spot with 3,516

movements. Al Maktoum International witnessed 406 movements,Fujairah International Airport witnessed 328 movements and Ras AlKhaimah International Airport had 223 air traffic movements. Al AinAirport took up the rear with 167 air traffic movements. The International Air Transport Association indicated a good month

for the Middle East as well, noting that while European airlines stoodout in August as having achieved the strongest growth in internationalpassenger traffic in August, the next fastest growth region, the Mid-dle East, achieved 6.7% growth in international passenger numbers. "The industry has shifted gears downward. The pace of growth

in passenger markets has dipped and the freight business is nowshrinking at a faster pace. With business and consumer confidencecontinuing to slump globally there is not a lot of optimism forimproved conditions any time soon," said IATA Director GeneralTony Tyler in a statement. c

P

Mixed signalsWhile passenger statistics in the Middle East were positive in August, industry organizations offer up unsettling news with regard to travel to and from North Africa BY RYAN WHITE

0

2%

4%

6%

8%

10%

12%

AFRICA

REGION MONTH % YOY YTD AUGUST 2011 % YOY YE AUGUST 2011 % YOYAFR 7 041 (15.2) 49 293 (14.9) 80 578 (6.9) ASP 79 102 3.6 572 339 3.8 854 958 5.4 EUR 120 222 4.5 787 139 8.3 1 152 403 7.4 LAC 22 350 3.5 172 375 8.2 253 113 8.2 MEA 2 141 9.2 16 850 11.4 24 817 12.9 NAM 100 853 1.8 733 779 2.7 1 083 394 3.4 ACI 331 710 2.9 2 331 775 4.8 3 449 264 5.4

ASIA/PACIFIC

4.9%4.2%4.2%

2.9%

9.8%

7.0%

11.5%

6.8%

8.5%

7.4%

6.0%

4.9%

2.8%

0.9%

EUROPE LATIN AMERICA MIDDLE EAST

AUGUST

NORTH AMERICA INDUSTRY

JULY

TOTAL PASSENGERGROWTH BY REGIONSource: IATA

ACI’S TOTAL MONTHLY PASSENGERSTATISTICS FOR AUGUST 2011Source: ACI

Page 45: Gulf-Africa Duty Free & Travel Retailing

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Maturity matters, not age

Page 46: Gulf-Africa Duty Free & Travel Retailing

TFWA WE Review

46 GULF-AFRICA DUTY FREE & TRAVEL RETAILING NOVEMBER/DECEMBER 2011

he 27th annual week-long TFWAWorld Exhibition duty free and travelretail trade show closed on Sep-tember 23 in the Palais des Festi-vals et des Congres, Cannes, France.A total of 5,868 trade delegates par-

ticipated in the exhibition and conferenceevent, up 9% from last year, from 2,737companies. This compares with a final fig-ure of 5,398 people from 2,570 companieslast year. Of that total, 1,818 (+15%) werekey duty free operators and retailers from548 companies (+9%). The most significant areas of growth

were in delegations from Asia at +15%and Europe at +11%, with +13% fromAfrica, +4% from the Americas and a dropof 6% from the Middle East and 12% fewerfrom Oceania.

T TFWAWorldExhibitionattendance�up�9%A packed Palais was a perfect testament to the success of the TFWA World Exhibition this year

TFWAWorldExhibitionattendance�up�9%

The TFWA World Exhibition attracted a totalof 5,868 delegates from around the world

Page 47: Gulf-Africa Duty Free & Travel Retailing
Page 48: Gulf-Africa Duty Free & Travel Retailing

48 GULF-AFRICA DUTY FREE & TRAVEL RETAILING NOVEMBER/DECEMBER 2010

A positive mood prevailed throughout theshow as visitors flocked in from all over theworld to see the latest products exhibited by457 exhibiting companies, of which 37 werenew to the show or returning after an absence.The ‘A Brand New World’ themed

tradeshow got off to a damp start with arange of leisure activities on Sunday Sep-tember 18 which were affected by heavyrain. Golf, jogging, hiking, pétanque, and– new this year – beach volleyball, a per-fume workshop and a wine tasting expe-rience, gave over 225 delegates a relaxedand enjoyable start to the week. That evening at the rather windswept

Opening Cocktail on the terrace of thePalm Beach, 1,380 attendees caught upwith friends and acquaintances old andnew. Fabulous fireworks lit the event cour-tesy of the City of Cannes.The Conference on Monday 19 was

attended by 888 – a record attendanceand a lucky number in China – attracted bythe excellent speakers: Kofi Annan, for-mer Secretary General of the UN, MicheleNorsa, CEO Salvatore Ferragamo, StephaneGarelli, Professor at the International Insti-tute for Management Development andErik Juul-Mortensen, TFWA President.

TFWA WE Review

The Opening Cocktail was hosted by TFWA, held at thePalm Beach and concluded with elaborate fireworks

The conference saw a line-up of charismatic and knowledgeable speakers to kick off the tradeshow

Page 49: Gulf-Africa Duty Free & Travel Retailing

EST. 1757

WWW.HANKEYBANNISTER.COM

Page 50: Gulf-Africa Duty Free & Travel Retailing

50 GULF-AFRICA DUTY FREE & TRAVEL RETAILING NOVEMBER/DECEMBER 2011

At least 160 delegates were given astimulating and informative briefing on threediverse channels at the Airline, Cruise andFerry Workshop on Tuesday 20, by MagnusEhrenberg, Chief Executive of EhrenbergKommunikation, Trevor Moore, Buying &Merchandising Director of Harding Broth-ers, Raphael Bejar, CEO Airsavings andPierre Freyssinet, CEO Uleo Holding. The Asia Pacific Workshop on Wednes-

day 21 focused on ‘Emerging Asia.’ Around200 delegates were given a rousing briefingon these dynamic markets by Marion But-tler, Regional Director Europe of the PacificAsia Travel Association. Sunil Tuli, PresidentAsia Pacific Travel Retail Association, PeterMohn, Partner m1nd-set and Mathieu Van-halst, International Sales Manager, TFWA.The Scene private after-hours venue

staged special celebrations on Wednesdayto mark its 10th anniversary including ahuge birthday cake. On Thursday 22 eveningthe White Cats performed live before apacked audience of show delegates.However the social highlight of the week

was Le Premium Evening at the Palm Beachwith a premium seated dinner for 900guests and a thrilling private concert byfamous singer-songwriter James Blunt instunning surroundings.Next year TFWA World Exhibition will take

place October 21-26 in Cannes. Beforethen members of the duty free and travelretail community will assemble at theMEDFA Conference on November 21-22 inDubai and at TFWA Asia Pacific & GATEONE2ONE May 13-17 in Singapore. c

TFWA WE Review

With 457 exhibitors located in the Palais, the trade floor was buzzing with excitement

Page 51: Gulf-Africa Duty Free & Travel Retailing

invites you to discover the new KINDER FRIENDS and KINDER MIX assortments designed exclusively for travel retail. Bursting with Kinder goodness, the KINDER FRIENDS 250g pouch contains bite-size Kinder Bueno, Kinder Chocolate, Kinder Country and Schoko-Bons. The new KINDER MIX 420g offers a wonderful selection of Kinder Maxi, Kinder Schoko Bons and Kinder Bueno bars in a unique packaging that will delight all the Kinder fans!

Flying high with and

NEW!

Page 52: Gulf-Africa Duty Free & Travel Retailing

Brand masters

Company News: Puig

52 GULF-AFRICA DUTY FREE & TRAVEL RETAILING NOVEMBER/DECEMBER 2011

is the star, with market share close to 3% inglobal travel retail.

“Keep in mind that according to Gener-ation research ‘today’ is the best selling mas-culine line, which has never happened for usbefore,” Bouchard says. “It has really estab-lished itself as a top brand over the last threeyears.” Bouchard attributes that success toa broad marketing campaign, including in-store activities that have drawn attention,increased shop penetration and generatedmarket excitement around the brand.

Staying activeLast year Puig undertook an importantactivity campaign around Lady Million and1 Million together with Distilleria Bottega’sProsecco. “That was one of the first cross-category activities that we’ve done,” Bouchardsays. “It created a lot of excitement.”

Another successful cross-category activ-ity was undertaken for Paco Rabbane last yearover a span of 10 months. “We put togetherunder one roof the fragrance, watches, thesunglasses and the famous Paco dresses.This was definitely one of the most suc-cessful promotions that we’ve had.” In factWorld Duty Free, Autogrill’s UK travel retailarm, didn’t want it to end. So Puig teamedup with them on a temporary three-month“pop-up shop” for Paco Rabanne at Lon-don’s Heathrow Airport.

“We’re very specific with our assort-ment, in the sense that we don’t want to listour brands in all the different doors unlessit matches well with the shopper profile –and makes sense in the region,” Bouchard says.“As one example, Nina Ricci is a key brand inRussia, so we put more emphasis on thatbrand in that market, as opposed to anotherbrand like Carolina Herrera.”

Dubai gives a twist to this strategy, giventhe huge mix of nationalities that transitthrough. Here, Bouchard says, they see theRussian travelers opting for Nina Ricci,Europeans going for Paco Rabanne, MiddleEasterners going for Paco Rabanne and Car-olina Herrera, and British travelers going forPrada.

This is a year of consolidation for Valentino,Bouchard says, and the brand’s recent rolloutof Valentina will continue into 2012. Valentinawas created by master perfumers Olivier Crespand Alberto Morillas. The bouquet blendsan Italian floral orientalfeaturing Calabrianbergamot and whiteAlba truffles, along withjasmine, Amalfi orangeblossom and tuberose,offset by wild straw-berries and a mix of cedar andamber. c

he fragrance category thisyear has been growing,” saysPatrick Bouchard, TravelRetail General Manager forPuig. Bouchard says the cat-

egory continues to play an important rolewithin the larger perfumes and cosmeticsoffering, especially in certain markets suchas Europe and Latin America. “It’s really atrue growth contributor in the P&C category,”he says.

The shop trend globally is at 13%,Bouchard says. The strength is driven pri-marily by markets in the Americas, wheresales are up 20% overall and markets likeBrazil are doing outstandingly well. “Europehas also shown a good growth at around10%,” he says. The bad news is coming fromthe Middle East and North Africa, wherepolitical turmoil has hit markets such asTunisia, Egypt and Syria. On the other handplaces like Dubai have been doing very well.The end result? “Positive growth altogether,”Bouchard says.

Puig owns fashion houses Carolina Her-rera, Paco Rabanne and Nina Ricci, in addi-tion to marketing licensed and proprietarybrands. Prada, which is probably the bestknown of Puig’s brands, is operated througha joint venture that holds the license forPrada beauty products. Puig also has licenseagreements for brands like AdolfoDominguez and Comme des Garçons, retailnames including Mango, Zara and Mas-simo Dutti – and its reach even extends tocelebrities like Antonio Banderas and Shakira.

The biggest brand for Puig in terms ofmarket share remains Carolina Herrera,which has a global market share of overthree points, hinging on its strength in LatinAmerica. In terms of growth, Paco Rabanne

“TDespite hiccups, sales are up overall for Puig’s huge rangeof well known brands, and the new rollouts keep coming

Puig rolls outValentino’s Valentina

this year

Carolina Herrera’s 212 VIP Men“retail-tainment” activity organized

by Puig, Abu Dhabi Airport

BY HIBAH NOOR

Page 53: Gulf-Africa Duty Free & Travel Retailing

“Last good buy before you �y”22 YEARS CELEBRATING MILESTONES22 A22 YE

“Last g b TING M

good buy befor S CELEBRA ATING MILEAR SSNEONE

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Page 54: Gulf-Africa Duty Free & Travel Retailing

Company News: Beauté Prestige International

54 GULF-AFRICA DUTY FREE & TRAVEL RETAILING NOVEMBER/DECEMBER 2011

eral Manager, does notfind it surprising thatthe first perfume fromElie Saab will be a hit.“It’s the dream of everywoman to be seen inan Elie Saab gown….The feedback receivedon the fragrance hasbeen very positive.There is a non-stopdemand from the localmarket and landed doors.”

There is an element of marketing logicbehind his confidence. After all, Elie Saab wasthe first Lebanese designer to dress an Oscarwinner, Halle Berry, in 2002. She received herbest actress award dressed in a Saab burgundygown, after which the Lebanese designer's

clothes became the rage in Hollywood.However, Madi is going the extra step to

create what he calls “excellent exposure andexclusive positioning” in most key airlinemagazines. In order to maximize brandawareness, he says, the company has plannedmedia investments to be in sync with thelocal markets and duty free promotionsand advertising.

In addition, Traveller has designed specialcabin crew promotions along with passengerpromotions, customized to support the brandand tailored for the different airlines. Traveller

reps found that the fra-grance and the brand gen-erated a flurry of excitement and interestamong the cabin crew.

The fragrance of course has receivedimmediate success in the Mideast, giventhat Elie Saab is a native-born Middle East-erner whose life has fired the imagination oflocal youngsters. He launched his firstdesigner label when he was only 18 – hehad been sewing since he was a child, know-ing very early on, as he told the media, thathaute couture would be his life and hisfuture. While his main workshop is inLebanon, he has workshops in Milan andParis, the two fashion capitals of the world.

In the words of Madi, in addition to theexceptional quality that Elie Saab symbol-izes, “due to the origin of the designer we areconfident that the fragrance will be an excep-tional success in all Middle East regionswith no exception on the destination.”

Of course, one cannot play down thefact that Traveller Limited itself is a highlysuccessful inflight services company withinthe renowned Chalhoub Group, and a pre-ferred distributor for several brands andairlines alike. Based in Jebel Ali, Dubai, Trav-eller proudly markets itself as the distribu-tor that has taken “luxury to the skies.” It hasbeen providing customized services andsupplying inflight programs to airlines in theMideast for 23 years. c

f sales in ground duty free stores andmajor fashion centers of the world areany indication, Beirut-born haute cou-ture designer Elie Saab’s very first per-fume should be soaring sky high in

more ways than one, as it makes its inflightdebut among airlines in November. Elie SaabLe Parfum, as it is called, the fragrance isalready in the top five sellers among femaleduty free shoppers in the Middle East, saysits travel retail distributor Traveller Limited.

The fragrance is part of the coterie ofnone other than Beauté Prestige Interna-tional (BPI), which describes its mission asdeveloping “through time, in the selective per-fumery market, the spirit and the vision ofhighly talented creators.” The other per-fumes it carries are Issey Miyake, Jean PaulGaultier and Narciso Rodriguez.

Florian d’Hauteville, Regional Sales Man-ager of BPI expects Elie Saab Le Parfum tosoon become one of the main perfumehouses in the industry. If anybody, he shouldknow. D’Hauteville has been working for BPIin the Middle East and Africa for about a year,after spending many years in the Europeanduty free business. Already, he says, “With thesupport of many operators we have been ableto faithfully translate the DNA of the fash-ion house and present the fragrance in avery qualitative way.”

A confident Rami Madi, Traveller’s Gen-

I

“It’s the dream of every woman to be seen in an ElieSaab gown… The feedbackreceived on the fragrance hasbeen very positive. There is anon-stop demand from the localmarket and landed doors.”

Rami Madi, General Manager, Traveller

Elie Saab’s Le Parfumready for take offTraveller confident Elie Saab’s fashion house fame will rub off on fragrance BY HIBAH NOOR

LebaneseDesignerElie Saab

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56 GULF-AFRICA DUTY FREE & TRAVEL RETAILING NOVEMBER/DECEMBER 2011

Beauty powerhouse Coty Prestige,offers the first fragrance collectionof Bottega Veneta, one of theworld’s premium designer brands,which will hit Bottega Veneta’sboutiques in the United Arab Emi-rates, Saudi Arabia, Qatar, Kuwait

and Bahrain in November with a roll-out scheduled in select specialty and

department stores as of December 2011.The same strategy will be applicable in the Middle

East's travel retail operations where location will play akey role in highlighting the exclusiveness of this very pre-mium product.

The fragrance will also be available in the region’s keyairlines with some starting as early as November and oth-ers following at the beginning of 2012.

Bottega Veneta Eau de Parfum juice, a creation ofRobertet’s Michel Almairac, is described as a “leathery,floral chypre.” The company says that it “aims to evokethe olfactory language of the Venetian countryside –fresh meadows, mown hay, flowers, earth and wood –with the gentle richness of leather crafted by a masterartisan.” Bottega Veneta will be available as an Eau de Par-fum, a body cream, a body lotion and a shower gel.

Fragrance wavesThe allure of luxury

fragrances continues to be a market maker, from the Middle East to Italy… and beyond

The Oudh opportunityDubai-based oriental perfumer Ajmal Perfumes is set to benefit from a newawareness of Oudh based fragrances in western markets. Oudh (also knownas agarwood) is a dark resinous heartwood that forms in aquilaria and gyrinopstrees, which are large evergreens native to Southeast Asia. “With all the international brands trying to enter the Oudh based

fragrance category, initially this would be a worry, because it’ssomething we specialize in and these companies come in with deeppockets," says Abdulla Ajmal, General Manager, Ajmal Perfumes.Instead, he says, he is optimistic because the arrival of multipleplayers within this category is going to boost the whole industry.“It’s created more awareness. If you look at Tom Ford and the

Armani Privé, they have brought Oudh to a larger audience andthat has helped brands like Ajmal who have years of experiencewith the product and sell not only Oudh based fragrances but alsoproducts for the home like Oudh in the form of incense to reachfurther.” Ajmal says. “Newer clientele who never would’ve tried someof our fragrances are more inclined to do it because of the exposuregiven by the big brands.” Ajmal says that new Ambre Fruite and Ambre Pimente unisex fragrances

are also ready to hit the duty free shelvesand that the company is making goodinroads with airlines around the world.During the Middle Eastern crisis, he says,people didn’t travel to the countries thatthey normally would. “They came to theUAE instead of going elsewhere,which benefited us tremendously.People from Saudi Arabia, Qatar andKuwait flocked to the UAE due towhich the malls were packed. Nor-mally July/August is the quietest timein terms of business. This year wasdifferent with mainly Arabs from theGCC that were coming in.”

Fragrance News

Luxury lineage

Frompen to perfume

Italian writing products manufacturer Monte-grappa first opened for business in Bassano delGrappa in 1912. In its first century the Italian brandhas managed to establish a broad internationalpresence and reputation.Now Montegrappa has introduced a fra-

grance line called NeroUno. “NeroUno bringsyou an inspiring and calming scent that cre-ates a feeling of unlimited freedom, the kind offeeling that you only experience high up on thepeaks of Monte Grappa Mountain,” reads thecompany’s description. NeroUno combines herbs and spices from

Monte Grappa mountain with Mediterraneancitrus aromas and wood oils, blended by Mon-tegrappa’s master perfumers in Italy. The fra-grance is available in 50ml and 100ml Eau deToilette, and in a 100ml After Shave Spray, aswell as through a complementary line of showerand shaving products.“Each item in the NeroUno collection rep-

resents the ethos of Montegrappa,” the com-pany says, “the essence of Italy in an objet d’art.”

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Fragrance News

FREYWILLE HEADQUARTERS: Gumpendorfer Straße 81 | Tel.: +43-1-599 25 - 450www.freywille.com | vienna, austria

58 GULF-AFRICA DUTY FREE & TRAVEL RETAILING NOVEMBER/DECEMBER 2011

Estée Lauder and Tory Burch announcefragrance partnershipAramis and Designer Fragrances, a division of The EstéeLauder Companies Inc. and Tory Burch announced the sign-ing of a multi-year agreement for the exclusive worldwidelicense of the Tory Burch fragrance business. This partnershipmarks Tory Burch’s first venture into the beauty industry. Launched in 2004, Tory Burch is an American sportswear

brand with an eclectic sensibility and an attainable price point. “Tory Burch is more than an innovative designer; she’s a lifestyle

brand. Tory empowers women with her clothes, creativity andexperimentation of modern designs,” says Veronique Gabai-Pinsky, Global Brand President, Aramis and Designer Fra-grances. “She has an inspiring and affordable sensibility thatwe know will transcend into the fragrance industry.”“I’m thrilled to partner with The Estée Lauder Companies,

an iconic company that has been a tremendous inspiration tome in business and philanthropy,” says CEO and Designer ToryBurch. “Fragrance is a natural extension of our brand — we willcreate unique fragrances that complement a woman’s innatebeauty. Fragrance is a part of my daily routine, and it evokesstrong memories of my mother and grandmother. I still remem-ber their favorite scents."The first Tory Burch fragrance products are expected to be

introduced in 2013.

This fall, Coach introduces the new Poppy Flower to its fra-grance collection. Poppy Flower mixes fruits with soft florals to explore the roman-

tic side of the Coach Poppy. Designed to inspire a mood ofwhimsical beauty, Poppy Flower is a chic,feminine blend, which takes fruits andflorals to a unique place by layeringthem between fresh herbal notes andwarm hints of musk and exotic woods.

“Coach Poppy Flower has beencreated around the Poppy aesthetic,incorporating a fresh and lightheartedspirit with a kaleidoscope of sparklingfruity notes,” says Karyn Khoury, EstéeLauder Companies Senior VicePresident of Corporate Fra-grance DevelopmentWorldwide. “The Poppygirl is bright andbold—and instantlymemorable. It followsthen that her fragranceis equally unique andunforgettable.”

Coach’s Poppy goes floral

Page 59: Gulf-Africa Duty Free & Travel Retailing

duty free show of theamericas

Business Complete

i n t e r n a t i o n a l a s s o c i a t i o n o f a i r p o r t d u t y f r e e s t o r e s

March 11-14, 2012 | Orlando World Center Marriott | Orlando, Florida, USA

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Page 60: Gulf-Africa Duty Free & Travel Retailing

Company News: International Travel Retail

60 GULF-AFRICA DUTY FREE & TRAVEL RETAILING NOVEMBER/DECEMBER 2011

he founder of one of the newest travel retail distributors,Mariem Mersni Ben Cheikh, says that despite the chal-lenges she has faced while doing business in one of thetoughest regions of the world, she is now confident thather company is ready to soar. Beirut-based International

Travel Retail has in fact signed a contract to distribute the vodka andwine brand of Italy’s favorite designer, Roberto Cavalli, and is nego-tiating contracts with other brands.

If that isn’t enough, she is also negotiating with a Lebanese super-star to create a brand perfume and with a large French fragrance com-pany for exclusive distribution rights. Ben Cheikh is hoping to havesome important announcements around these toward the end of 2011.

“Other brands that contacted me are under discussions for a dealthat I hope to conclude before the end of the year,” says Ben Cheikh.“My goal is to distribute to the airline and duty free shops of the region.I already have relations with operators because of the past nine yearsof the partnership I’ve had with them and my membership in MEDFA[Middle East Duty Free Association] for the past five years. I am talk-ing about Dubai Duty Free, Emirates, Qatar Duty Free, Qatar Air-ways, Etihad, MEA, Saudi Airlines, Beirut Duty Free…”

After all, she spent nine years with the well-known and large dutyfree operator, Hamila, as Managing Director, before moving on toCowrie as CEO and shareholder, but realizing in a short time thatit was time for her to strike out on her own, use the contacts thatshe had so carefully nurtured over the years and set up shop in the

country she knows best, Lebanon. And she did, setting up shop indowntown Beirut with six people: her PA, an accountant, a businessdeveloper and two sales reps, one for North Africa and one for theGulf and of course, herself. The Mideast and Gulf region, she pointsout, is bigger than North Africa as a whole.

In a letter to her contacts in the industry, with whom she formeda relationship over a decade, she reaffirmed how the move was theright thing for her to do and also because she was heading back tothe destination of her heart, Lebanon. Part of the letter reads: “Dutyfree business is my knowledge, my passion and after 10 years of hardwork I can say that I am really addicted to this field… I am very happyto continue my professional career with you all.”

International Travel Retail Offshore SAL is based in the MakassedBuilding on Fosh Street in downtown Beirut. Ben Cheikh can bereached at 961 1 985820 or at [email protected]. c

T “My goal is to distribute to the airline and duty freeshops of the region.”

Mariem Mersni Ben Cheikh, CEO, International Duty Free

International Travel Retailtakes challenges head onThe new distributor signs alcohol deal with Italy’s Cavalli, and there’s more to come

BY HIBAH NOOR

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62 GULF-AFRICA DUTY FREE & TRAVEL RETAILING NOVEMBER/DECEMBER 2011

Traveller Limited, a renowned in-flight ser-vices company within the well-established50-year-old Chalhoub Group, has two impor-tant announcements to make: it has begunproviding its services to Pakistan InternationalAirways (PIA) and has signed a distributiondeal with Shiseido, the Japaneseskincare and cosmetics companythat is a fixture in the most exclusiveskincare establishments.Although Traveller is geared to air-

lines in Middle East, it also dealswith non-Middle Eastern but regionalbased airlines. Traveller Limited’sGeneral Manager, Rami Madi, saysthat two years ago it began servic-ing airlines based in Iran, both MahanAir and Iran Air, followed by PIA thisyear. Part of Traveller’s strategy is to ana-lyze the passenger profile of airlines beforeoffering it specific products anyway. “We are open to working with all the air-

lines in the Middle East and the Near East,”Madi says. “Doing business with PIA was justanother step for us… we are confident ournew associations will flourish.”The Shiseido deal is pegged to distrib-

uting the well-known skincare and cos-metics company’s products on airlines in theMideast. Shiseido, which is publicly listed,

started in Japan in 1872, and today oper-ates worldwide, with centers in severalEuropean cities as well. It was born inTokyo’s Ginza district as Japan’s first West-ern-style pharmacy, at a time when herbal

medicine was the norm, founded by the23-year-old chief pharmacist of a navy hos-pital, Arinobu Kukuhara. He picked thename from the famous Chinese book offortune telling Yi Ching.The addition of Shiseido to Traveller’s

coterie of renowned products is anotherfeather in its cap, as it continues to strengthenits reputation of being the preferred and

reliable choice for airlines in the Mideastregion. It provides brands with support interms of implementing a marketing calen-dar for the supplier and only offers productsto airlines after identifying and analyzingpassenger profiles. It also helps in design-ing and implementing onboard sales pro-cedures and then monitors the performanceof the product.

Clinique introduces a new foundation that cre-ates a flawless complexion, softening theappearance of lines and wrinkles immediatelyand over time, and working to prevent thevisible signs of aging. The new Clinique Repairwear Laser Focus

All-Smooth Makeup SPF 15 incorporatesClinique's advanced patented technologyfrom its powerhouse de-aging serum, Repair-wear Laser Focus Wrinkle & UV DamageCorrector. The result is an ultimate de-agingfoundation that softens lines and coversimperfections. Repairwear Laser Focus All-Smooth

Makeup SPF 15 is also formulated withingredients that prevent and repair visible UVdamage, one of the leading culprits of linesand wrinkles. This foundation addressespast UV damage, with Ultrasomes that grad-

ually and visibly help repair damage result-ing from direct UV exposure. A cocktail of ingredients works to minimize

the appearance of damage. Whey Proteinhelps minimize the appearance of lines andwrinkles, while Siegesbeckia Orientalis Extractand Palimitoyl Oligopeptide help to plump upand fill in lines. Supporting ingredients to protect the skin

include Vitamin E to provide antioxidant pro-tection and SPF 15 to help protect skin fromfuture UV damage. Taking a 360° approach to age preven-

tion, Repairwear Laser Focus All-SmoothMakeup SPF 15 will improve the texture ofthe skin while working to prevent futuredamage. The foundation is available at Clin-ique travel retail locations in Europe, theMiddle East and Africa.

Traveller signs PIA, Shiseido deals

Estée Lauder introduces Clinique RepairwearLaser Focus All-Smooth Makeup SPF 15

Skincare News

Shiseido Benefiance Wrinkle Resist 24 Day Cream SPF 15

Shiseido Bio-PerformanceSuper CorrectiveSerum

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Company News: La Prairie

64 GULF-AFRICA DUTY FREE & TRAVEL RETAILING NOVEMBER/DECEMBER 2011

he Cellular Power Infusion launchheld at Dubai Duty Free (DDF) inOctober demonstrated how effec-tive a concentrated, co-ordinatedmesh of multi-site promotional

activities can be in propelling a new productonto the market and building awareness.

According to Mohamad Al Khalil, LaPrairie Regional Manager Middle East/India,the intense activities around the launch of itsnew skincare product attracted around 150passengers each day, recruiting new cus-tomers and diverting traffic to the perfumesand cosmetics shop and to La Prairie’s counterin particular. La Prairie daily sales averagesincreased by 48%, and La Prairie ranked asthe number two in DDF in skincare duringthe launch period. Meanwhile, sales in othercategories benefited from the ‘spillover’ effectof the Cellular Power Infusion promotion.

“Customers were attracted by the pro-motion and were excited by Cellular PowerInfusion, the combination of high tech andluxury,” Al Khalil says. “They appreciated theservice and the consultation that was pro-vided, especially because the promotion hada private consultation area.”

The Cellular Power Infusion launchincluded activities at DDF Terminal 1 and Ter-minal 3. For Terminal 1, a “Circle Promotion”ran in October, featuring a 24-square-metrecircular stand in the middle of the con-course. At Terminal 3 a multilayered strategybrought a range of overlapping activities.In addition to large pillar advertisementsand a wall promotion, a four-site tables pro-motion and a Mega Outpost were created.

The Mega Outpost was operated 50 metresaway from the DDF cosmetics shop, which pro-vided a separate sell point. The outpost cov-ered 21-square-metres and featured a privateconsultation area where customers couldreceive a Cellular Power Infusion application.

ing of the skin’s structure and therenewal of skin tissue, and helpsreintegrate cells in aging skin torestore firmness and elasticityand reduce the appearance oflines and wrinkles.

The key ingredients in Cellu-lar Power Infusion include Swisssnow algae, which shieldsagainst environmentalstress and energy loss, askin renewal peptide thatstrengthens the skin’s ownrenewal mechanisms, andphyto stem cell extract, whichhelps to delay the aging ofepidermal stem cells. c

Full product information,covering main technolo-gies, usage, expectedresults and link saleswith other ranges,was provided tocustomers, and allof the beauty advi-sors were trained inspecial sales skills ata regional conference.Always of interest atDDF is the mix of nation-alities and their differentresponses to any given productor promotion: Al Khalil says that the Cel-lular Power Infusion launch proved to be ofparticular interest to Chinese, Russian, Euro-pean and Arab travelers.

Skin scienceDr. Sven Gohla, Vice President Researchand Development for La Prairie, says that Cel-lular Power Infusion works in three ways.“The significance of Cellular Power Infusionlies in the development of a radical three-pronged approach that simultaneously treatsthe key factors that contribute to skin aging:loss of energy, handicapped functionalityof skin cells and a general weakening of skintissue. It enabled us to produce a truly game-changing skin treatment that dramaticallyslows down the aging process by striking atevery aspect of the skin’s makeup.”

La Prairie says that Cellular Power Infu-sion reverses energy loss within cells by acti-vating cellular power stations and securinga continuous flow of energy to the cells,stimulates epidermal stem cells, allow-ing new cells to rise to the surface,triggers natural renewal of skin cellsand protects against environmentalstress. It also supports the rebuild-

T

La Prairie’s CellularPower Infusion

Another mega promotiontook place in Dubai Duty Free

Debut in Dubai La Prairie covered DDF in a web of coordinated promotions to launch its new skincare product BY HIBAH NOOR

For DDF’s Terminal 1, a “CirclePromotion” ran October 1-15

Page 65: Gulf-Africa Duty Free & Travel Retailing

Fernando Alonso - F10 GP Bahra in

N a t u r a l B o r n W i n n e r t h e n e w s p o r t f r a g r a n c e

Page 66: Gulf-Africa Duty Free & Travel Retailing

Company News: L’Oréal Consumer Products

66 GULF-AFRICA DUTY FREE & TRAVEL RETAILING NOVEMBER/DECEMBER 2011

ur major development in the Middle East has been get-ting The Body Shop brand into the airport stores,”says Jacques Berger, Travel Retail Marketing Director,L’Oréal Consumer Products. “In the Middle East we haveintroduced The Body Shop brand in some new coun-

tries like Jordan and Egypt and will introduce it in Lebanon very soon.“The Body Shop is available worldwide in 150 countries.” The

brand is also in the local market in 66 countries and in 2,500 stand-alone stores worldwide, Berger adds.

“We hesitated a little bit about what to put on the shelves at first,”Berger says, “but after a while we discovered that the retailers preferthe body butters and all the body products. This is the way to hookthe consumers.”

The Body Shop brand is especially well suited for gifting, Berger says.The “Create Your Own” concept, introduced last October, allows theconsumer to create their own tailored gift set by picking two Body Shopproducts and then receiving a third complimentary product. Thecomplimentary item can be a mini shower gel or mini body butter.

In addition to The Body Shop, L’Oréal Consumer Products han-dles Roger Gallet, Maybelline and L’Oréal Paris. The latter is a goodpartner for The Body Shop, according to Berger: in fact The Body Shopwas first introduced to the Middle East market following on the suc-cess that the L’Oréal Paris brand enjoyed there.

“The link between The Body Shop and L’Oréal Paris lies in the factthat they are two affordable brands which are in the airports to attractnew consumers,” he says. “The idea is to bring additional business to theoperators.” Travel retail remains an ideal market for luxury products, andBerger believes that because more and more people are traveling, oper-ators continue to need brands like The Body Shop and L’Oréal Paris toattract new categories of buyers and increase revenue.

L’Oréal Paris is number one in Jordan, but Dubai is definitely oneof the most important Middle Eastern markets for the brand. It’s inall the terminals at the airport, and is backed up by 16 on-site beautyadvisors. “We have huge promotions,” Berger says. “Most of the timeit’s skincare because skincare is more successful than makeup at thisairport.” There are a lot of Chinese travelers who transit through

Dubai, and they favor whitening products, and a lot of routineslike toners and cleaners.

Revitalift is one of the top sellers, and its market momentumwas reinforced with the recent introduction of Revitalift Repair10, which combats 10 signs of aging, including UV damage. TheRevitalift line also includes Revitalift Program, which Berger saysis the number one SKU worldwide.

In addition to anti-aging products, mascaras are one of thestrong suits for L’Oréal Paris, and the brand introduced two newsets at TFWA WE this year. Mega Volume Collagene 24 Hourintroduced new collagen biospheres for added lash volume,boasting an expansion factor of nine in addition to its 24-houreffectiveness. False Lash Telescopic delivers lengthening in addi-tion to a false lash effect, based on the linking and binding of1.2mm microfibers to create a telescopic ladder.

At TFWA WE L’Oréal also introduced a new promotional toolfor retailers that leverages digital technology and the Internet.It features a large-screen monitor and enables digital marketingcontent to be controlled over the Internet.

“We can change advertising from our office in all the air-ports around the world,” Berger says. “We can adapt to the typeof travelers coming through the airport: for example, for DubaiAirport if there’s a flight coming from China we can make surethat the advertising is in Chinese with subtitles.” The unit isalready in use in Paris, with French, English, Chinese and Russ-ian options. Germany will follow soon, and L’Oréal is already siz-ing up other promising venues. c

“The link between The BodyShop and L’Oréal Paris lies in thefact that they are two affordablebrands which are in the airports

to attract new consumers.”Jacques Berger, Travel Retail Marketing

Director, L’Oréal Consumer Products

“ORevitalift Repair 10 combats 10

signs of aging, including UV damage

L’Oréal Consumer Products makesinroads in the Middle East with avaried portfolio BY HIBAH NOOR

The right mix

Page 67: Gulf-Africa Duty Free & Travel Retailing

middleeastexclusive.com

27-29 February 2012Dubai World Trade Centre

Where buyers and brands do business

Taking place in Dubai – the commercial heart of the UAE and the wider Middle East – MiddleEast Exclusive is the definitive travel retail and duty free event, for the most dynamic airtransport region in the world.

Middle East Exclusive showcases duty free brands, luxury goods, and new products fortravel retail buyers, duty free outlets, agents and decision makers, who are keen to sourcehigh quality goods for the region’s thriving travel retail sector.

The travel retail world comes to Dubai!

Take part in this special event – which includes business networking opportunities and aunique VIP buyers’ programme – and build your sales in this booming marketplace.

For Stand Booking and to know more about the Hosted Buyers programme, please contactthe organiser, Channels Exhibitions, PO Box 55254, Dubai, United Arab Emirates. Telephone +971 (0)4 282 4737, or email [email protected]

The World Travel Retail, Duty Free & Luxury Goods Exhibition

Supported byVenue

Page 68: Gulf-Africa Duty Free & Travel Retailing

All under one roof

Company News: Anthon Berg

68 GULF-AFRICA DUTY FREE & TRAVEL RETAILING NOVEMBER/DECEMBER 2011

When a holiday or business traveler picksup a pack of Anthon Berg’s little liqueur-filled chocolate bottles, they are buying morethan just chocolate. They are purchasinga testament to the company’s innovativeand diligent work ethic, which goes intoevery item it manufactures. There are many hours of teamwork

involved in the innovation and productionthat happens at the company’s Copen-hagen facility. The marketing and salesdepartments are situated in the samebuilding, guaranteeing quality-conscioustravelers the best chocolate experiencepossible.“Everybody working at Anthon Berg takes

pride in ensuring high quality at all stages ofthe production chain – just as the youngGustav Berg promised his father when heassumed responsibility of the chocolate

company in 1901,” explains Crown. Back then, the company was small and

production was overseen by the manager.Today, Anthon Berg is a large operation withinternational sales. Yet one can still bumpinto senior managers and marketing per-sonnel at the roaster or conching machineson the production floor.Crown arrives on the scene to talk to col-

leagues who helped her develop and pro-duce a large version of the popular choco-late liqueur bottles, normally only five cen-timetres high.

YOU CAN NEVER BE TOO GENEROUSThe fact that a large company like AnthonBerg has both production and innovationunder the same roof has a big impact onthe final product. It influences the day-to-

day work of all involved. The productiondepartment, for instance, is involved inthe development of new products everystep of the way and can feed back ideasand suggestions for improvement. Likewise,the marketing and innovation departmentsoften visit the production section, especiallyduring development periods. This proximity allows each department

to follow every step in the manufacturingprocess. So when the marketing depart-ment asks the innovation department todevelop something new, they can actuallyview the production process together andobtain feedback from the specialists. Theresult is a very open company with a greatdeal of interaction among its employees.“It is much easier to develop new prod-

ucts when all the departments are closelyconnected. When the marketing or inno-vation department comes up with a newidea and starts developing it, we can havedaily direct contact with the chocolatespecialists in production. The ease of thatprocess ensures that knowledge of whatis feasible and what is not – because of thebeans, machines or ingredients – is always

elicate plums are covered in home-made marzipan, dipped in darkchocolate and sealed in shiny bags. Chocolate shells are filledwith fine liqueurs and carefully monitored to ensure the absoluteright temperature. Senior Brand Manager Rikke GroenborgCrown takes us on a tour through Anthon Berg’s production areaon one of her daily visits to the facility.D

Inside thetrendy and

unique AnthonBerg offices

A visit to Anthon Berg’s production facility offers an insightful glimpse into how the Danish confectioner’s products are made from A to Z

Page 69: Gulf-Africa Duty Free & Travel Retailing

www.dutyfreemagazine.ca GULF-AFRICA DUTY FREE & TRAVEL RETAILING 69

instantly balanced with the needs of thesales and marketing departments,” explainsInnovation Director Lars Christensen.At Anthon Berg, each department has

a very good understanding of the other.“When the manufacturing takes place inanother country, the physical distanceoften also creates a mental distance. Buthere you can experience all stages of pro-duction. For the marketing and innovationdepartments this means that you canalways take a look inside the productiondepartment and see how work is pro-gressing, which gives us a better under-standing of what is feasible. To use a pop-ular phrase we can actually walk the talk– we don’t just sit in marketing and salesand talk,” Crown says.This cross-departmental teamwork also

allows ideas to be developed much quicker,using every available competence fromthe start. It means that ways can be foundto realize a fantastic idea that is difficult toexecute. It might even lead to a result thatis better than the initial idea.“Literally all the chocolates in our Anthon

Berg portfolio are the result of teamworkas well as visits to each other’s desks andthe production area. It is easy to visualizethe end-product when you can follow thecreative process and the craftsmanship.You become proud of the product, becauseyou have followed it from A to Z, and atthe end you get to see the result in true life– not just a picture of it. Being under thesame roof creates a vivid feeling of solidarityand shared responsibility. Everyone reallywants to succeed,” explains Crown.

During Crown’s visit she drops in on theteam that helped her create a large choco-late liqueur bottle. “It was actually quite easyto do,” Crown says. “I came up with theidea, went down to the production depart-ment, asked if it was possible to make sucha large bottle and, being the excellentcraftsmen they are, they went to work tocreate the mould right away.”The bottle has been produced and will

be used for marketing purposes, as wellas a special prize in a competition beingheld at Copenhagen airport and open toall travelers passing through.At Anthon Berg, the marketing and

innovation departments can play with ideasthat are somewhat out of the ordinary andalmost instantly have the support of thecraftsmen from the production depart-ment. Strong cross-department teamworkand mutual understanding, enthusiasmand respect for each other’s skills are all cen-

tral to the company’s success.“The possibility to combine the marketing

and sales departments’ consumer insightwith the know-how of quality chocolate pro-duction and support from the innovationdepartment provides a great basis fordeveloping interesting new products thatmeet the needs and wishes of both thetrade and the consumers,” says Crown.“Through our consumer panel and focus

groups, as well as Facebook, we have adirect dialogue with our consumers,” con-tinues Crown. “This gives us a greatinsight into their desires, and we take thisknowledge with us when we meet to dis-cuss ideas, future products and evenpackaging. Because of our cross-depart-ment teamwork, there is relatively littledistance between consumer and prod-uct. And we believe this is one of theimportant factors behind the success ofthe Anthon Berg brand.” c

Anthon Berg staffproducing a large versionof the popular chocolateliqueur bottles, normallyonly five centimetres high

Anthon Berg offices and facility in Copenhagen

The making ofAnthon Bergchocolates

Page 70: Gulf-Africa Duty Free & Travel Retailing

ConfectioneryKraftsmanship

Company News: Kraft Foods World Travel Retail (KFWTR)

70 GULF-AFRICA DUTY FREE & TRAVEL RETAILING NOVEMBER/DECEMBER 2011

“The category has evolved quite nicely,”Fehr says. “There’s a lot of big players thathave decided to come into this market, andthey’re really mixing up the category. There’salways room for good strong brands inthis industry.”

Toblerone is by far thebestselling brand for KFWTR,Fehr says. But the company’sstable of “beautiful and price-less” brands, now of courseincluding Cadbury, are all grow-ing fast. The integration with Cad-bury has yielded a much more bal-anced mix overall, which Fehr sees asonly a plus. “Toblerone used to be a high pro-portion of our business, but now we havemore of a balance. It’s good not to rely onone brand.”

Moving forward, Fehr sets a high prior-ity on strategic in-store product placement,backed up by strong market research. “Wehave the insights that prove that confec-tionery is a classically impulse category, andif it’s strategically placed and if you havemultiple touch points, these can drive the per-formance of the category.”

The Middle East is a very promising mar-ket, says Jaya Singh, KFWTR’s Region Direc-tor, Middle East & Asia Pacific World TravelRetail. “The potential in the Middle East isenormous: we’ve seen growth in this regionsignificantly double up year on year,” he says.

The nationality profile in the region isdiverse, but does tend to gravitate toward

sweet products, Singh says. One of the two pri-mary demographics is made up of expatsfrom the Indian subcontinent who work in theMiddle East. These customers like sweet prod-ucts and are already quite familiar with brandslike Cadbury. “There is a confectionery cul-ture behind them,” as Singh puts it.

The second element in the demographicare the residents of the region, who, Singhsays, also have a similarly sweet-orientedculture. For confectionery retailers, thesecustomers are even better because they arealso strongly oriented toward gift-giving.

Further elements in the mix are Europeanexpats occupying managerial positions in theregion and, as in many other markets, a newand notable influx of Chinese travelers. Thelatter transit through Dubai in particular ontheir way to Africa, where China has beeninvesting heavily in resource-rich countries.Per capita consumption by Chinese nation-als lags behind those of Indian nationals,Singh says, but this is still an emerging con-sumer profile.

On the product side, KFWTR has addednew products from Cadbury, Toblerone andMilka. The biscuit category in particular isshowing great promise with the pendingaddition of six travel retail entries under theOreo banner. Consumer research has iden-tified a high level of Oreo awareness amongtravelers, which makes the brand a fruitful

ndreas Fehr, Managing Direc-tor of Travel Retail & EuropeanExport for Kraft Foods WorldTravel Retail (KFWTR), has rea-son to be well pleased with how

things have worked out over the past year.Things are coming together for KFWTR –literally. “Last year we were celebrating thecombined presence of KFWTR and Cad-bury’s International Travel Retail at ourTFWA WE stand,” he says. “This year inJune we celebrated another important mile-stone in the integration process of the twocompanies and Kraft Foods and Cadburylegally became one organization. I’ve beendelighted by the smoothness of the transi-tion process. We now move forward with asingle vision for the channel.”

The merger will increase KFWTR’s abilityto work with travel retail partners aroundthe world, Fehr believes, in addition to boost-ing the momentum of the confectionery cat-egory overall. “Our one clear aim has been toexcite and engage international travelers. Inthis past year I believe we have achieved this.We have pushed the boundaries of confec-tionery retailing a little further each time.”

KFWTR’s performance this year has beenan improvement on 2010, which Fehr, like somany others in travel retail, pegs as a recov-ery year. While the market is growing, how-ever, the growth rate for the category is lag-ging behind the rates achieved by luxurygoods, which themselves are rebounding fromthe heavier hit they took during the recession.

AFresh from the acquisition of Cadbury, Kraft Foods World Travel Retail is on a roll

BY HIBAH NOOR

“There’s a lot of big [confectionery]players that have decided to comeinto this market, and they’re reallymixing up the category. There’salways room for good strongbrands in this industry.”

Andreas Fehr, Managing Director of Travel Retail & European Export, KFWTR

Toblerone isby far thebestsellingbrand forKFWTR

This year in June KraftFoods and Cadbury legally

became one

Page 71: Gulf-Africa Duty Free & Travel Retailing

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Page 72: Gulf-Africa Duty Free & Travel Retailing

72 GULF-AFRICA DUTY FREE & TRAVEL RETAILING NOVEMBER/DECEMBER 2011

avenue for products that coverall the strongest segments, fromsnacking to gifting. Oreo repre-sents a ‘full-spectrum’ travel retailgifting entry, with something forthe premium and informal giftingsegments, as well as snacking, sharingand self-reward.

A study in sweetIn some recent research, KFWTR surveyedsome 1,200 passengers from the seven top buy-ing nationalities to determine which items andcategories were best suited for cash till pointsales. KFWTR created what it called a “stim-ulus board” representing non-brand-specificproduct categories. Confectionery linesincluded products from Nestlé, Mars, Lindt,Ferrero, Godiva, Perfetti and from Kraft.Other categories represented were travelaccessories, liquor, cosmetics, and others nor-mally associated with till point sales.

“In our travel-retail-specific cash till studywe saw differences among nationalities andtraveler type when it comes to details, butthere were clear patterns within the totalsample,” says Anna Somogyi, Senior Brand

Manager, KFWTR. “Shoppers are goingthrough on a similar ‘mood-hierarchy’ whilequeuing, and their needs should be translatedinto relevant product offers.”

In Cannes, KFWTR launched their CashTill Advisor Application, using their newshopper insights to address retailers’ location-specific requirements and deliver a solu-tion that can be tailored in real time duringa meeting.

“We aren’t only focusing on the cashtill,” Somogyi says. “We aim to be the expert

for the entire shopper journey. In Cannesour ‘Insight into Action’ video had its pre-miere. The film analyzes the behavior ofan average passenger in a representativetravel retail environment. Based on analy-sis of 40,000 passenger movements and3,300 interviews with global travelers, weselected key actionable insights, and showthese during the video.”

Somogyi says that the video enables retail-ers to put themselves in the shoes of a pas-senger and experience the impact of the air-port surroundings, the store, the category lay-out, the product offer, the promotionalmechanism and the cash till environment.

“For us the key challenge is to highlightthose insights to our retailer partners thatcan be activated in their store and turned intogrowth,” Fehr says. “We continue to investin understanding the travelers, turningknowledge into outstanding innovation,eye-catching in-store execution, excitingpromotions and, finally, but not least, intostrategic cooperation with our retail partnersto grow the business.” c

“In our travel-retail-specificcash till study we saw differ-ences among nationalities andtraveler type when it comes todetails, but there were clear pat-terns within the total sample.”Anna Somogyi, Senior Brand Manager, KFWTR

“The potential in theMiddle East is enor-

mous: we’ve seen growthin this region significantlydouble up year on year.”Jaya Singh, Region Director, Middle East & Asia

Pacific World Travel Retail, KFWTR

Company News: Kraft Foods World Travel Retail (KFWTR)

Oreo is the newestaddition to the KFWTR

diverse portfolio

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Company News: Goldkenn

s the Swiss chocolatier Goldkenn gets ready to cele-brate its 30th anniversary next year, it has decided to intro-duce its world-famous product in a culture where sweetsare a tradition – the Middle East. In fact, says the com-pany, one of its main products, Goldbar, fits right in with

the Middle Eastern taste buds.As other retail brands from Europe and North America are real-

izing, Middle East is the place to be for market expan-sion, whether they are fragrances, cosmetics, fashionitems or even specialized sunglasses. Says Yves Linder,the CEO of Goldkenn, "the potential is huge in theMiddle East and every year we have succeeded in intro-ducing new destinations. The Goldbar product isa product line that fits in and is in harmony withMiddle Eastern culture."

The Goldbar product goes back to the originof the company in 1980, when Steven Goldsteinand Christian Belce Kennedy decided to set upGoldkenn by combining both family names.

Goldbar itself was wrapped ina packaging that combined twowell-known symbols of Switzer-land, banks and chocolates.Today, Goldkenn enjoys a world-

wide reputation for innovativechocolates, particularly its flagship

Goldbar product. At the Tax Free World Association (TFWA) showheld in Cannes earlier this year, easily the most

important gathering of the duty-free sector,Goldkenn introduced three limited edition

chocolates to celebrate the 30th anniver-sary of the original Goldbar chocolate

next year. There are three limitededition Goldbars includingSwissness, Premium andCacao, representing the fun-damentals of Goldkenn.

The wrappers for these lim-ited editions were designed by

artist Emmanuelle Fuchs and will belaunched in April 2012. "Since

30 years, our Goldbarchocolates are the flagshipof the company," says Lin-der. “This limited edition

marks a significant step in the success and history of Goldkenn.”

At Cannes, the company also introduced a completelyredesigned Chocolate Club Col-lection product, which consistsof three exclusive boxes con-taining 12 extra fine crispycrêpes with a premium fill-ing. The recipes were alsoadjusted, says the company, to provide"even more indulgence and sweet-ness to the product." The three fla-vors in the new Chocolate ClubCollection are Praline, Cappuccinoand Selection. Each box was cov-ered with a luxurious sleeve, how-ever for the Asian market the sleeveis colored red. These will belaunched in February 2012.

The last of the three productsGoldkenn plans to introduce nextyear is called Swiss Kiss, a gold heart-shaped box containing the selection ofseven premium Swiss milk chocolatehearts filled with praline (77g), with eachchocolate wrapped individually in afoil. The launch date for SwissKiss is April 2012.

For this November, Gold-kenn is introducing Swiss Goldwrapped in an updated packag-ing made of shiny gold. This is thecompany's existing product, pralinefilled and enrobed in a Swiss quality milkchocolate. However, the company says thatit has also updated and improved on the orig-inal recipe.

"The splitting of products has been modified thoughthe quantity not affected," says Linder. "The develop-ment is positive. 2012 will be rich with these new productsand due to the celebration of the 30th anniversary.”

Goldkenn was among the earliest pioneers to develop successfullya new market category for chocolates, in the airport retail market,and then quickly moving into a second groundbreaking market, namelysales on board passenger aircraft, what is generally referred to as in-flight sales. Today, its chocolates are sold in more than 250 interna-tional airports and duty-free shops, on board approximately 50 air-lines, as well as on some cruise ships. c

A

Cashing inon theMiddleEasternsweet tooth

Goldbar by G

oldkenn

Goldkenn’sSwiss Kiss

The revamped Chocolate Club Collection

74 GULF-AFRICA DUTY FREE & TRAVEL RETAILING NOVEMBER/DECEMBER 2011

Goldbar product is ‘in harmony’ with Middle Eastern culture, says Goldkenn

BY HIBAH NOOR

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76 GULF-AFRICA DUTY FREE & TRAVEL RETAILING NOVEMBER/DECEMBER 2011

Perfetti’s exotic fruit flavors invade Mideast

Brand relaunch for M&M's will further drive conversion in travel retail

In one big sweep, the world’s third largest, privately held confectionery manufacturer has left itsfootprint in the Mideast, with more to go. Perfetti van Melle has placed its world famous sugarconfectionery and chewing gums in Jordan and Kuwait, with the Kingdom of Saudi Arabia as itsnext destination. Already, its products are all over the Mideast in the domestic market.“The Middle Eastern region is important for us,” says Mark Laros, Global Travel Retail Director for

Perfetti van Melle. “After Europe, this is our most important region. Arabs have a sweet tooth, they’reall into sugar confectionery and chewing gum. If you look at our market share globally, in the Middle Eastthey are amongst the highest. For the mid long term it looks very promising for us.”Making a dent in duty free travel retail is a coup for Perfetti because chocolate confectionery

still dominates the sector. Laros says that when it comes to chocolates, there are several globalbrands such as Nestlé, Kraft and so on. In sugar confectionery, he adds, there are six. And Per-fetti has two of these six.To break into and establish itself firmly in the Mideast, Perfetti had to take into account cul-

tural likes and dislikes. While not exclusively developing products for the Mideast, the companyfound that it already had products that met the Arab palate. “We looked at cultural diversity inthe Middle East,” says Laros. “For example, fruity flavors do well, mint flavors not as much… They[Middle Easterners] love fruit flavors… exotic fruit flavors, for example watermelon, mangoes, etc.The bestsellers in the Middle East are Mega Chups, Chewing gum with fruity flavors and ChupaChups backpacks.”Laros adds: “The world’s most famous lollipop, Chupa Chups appeals to people of all ages and

nationalities – and in particular kids, thanks to the fun and friendly gift packaging. Every year thecompany endeavors to bring its travel retail customers new, innovative and different concepts thatwill leap off the shelves and into consumer’s baskets.”

Mars International Travel Retail's (ITR) M&M's has developed a newvisual identity designed to capture the fun spirit of its personalityand also to maximize conversion within the travel retail channel. Announced at this year's TFWA Show in Cannes, the new look

follows extensive research undertaken by the Mars ITR team to ensurethat M&M's will further drive category growth across the 100+countries where it is available.Confectionery is a key driver of footfall and Mars ITR believes it

is the strongest category for impulse purchases in travel retail,having a huge untapped potential in penetration, conversion andaverage basket sizes in the channel. This potential is illustrated byMars ITR's finding that only 16% of all travelers buy chocolate, whilst90% say that they love it. Jack Tabbers, General Manager, Mars ITR, explains the strategy:

"From extensive market research we learned that clear signpostingwith only a few recognizable 'beacon' brands is the best way to attractnew buyers to the category. We also learned that brand color is oneof the strongest drivers of impulse. "With this new look we are optimizing the power of M&M's

- the global number one in confectionery - in a sophisticatedway, building on what the traveler already knows about the brand.The new look sees the characters brought to life in a variety ofentertaining and unique executions featuring the new eye-catching yellow theme and these components will be acti-vated at critical points along the consumer journey. We haveensured that the identity is expressed in a way that unlocks thefun spirit of the brand, engaging the shopper and, through avariety of different formats and executions, is adaptable enough

to meet with all specific requirements of retail locations around theglobe. I believe this approach will increase conversion as shoppersengage with the high recognition levels of M&M's –second only toSanta Claus in the US - and enjoy an amazing shopping experiencethat they'll remember and tell their friends about. I guess you couldcall it our 'go home happy' strategy."The new identity is part of a sustained commitment from Mars ITR

to drive category growth, which Tabbers emphasizes is an under-exploited opportunity for the whole industry: "Retailing is entering anew era. The pace of development of new technology, particularlyin mobile communication, makes global trends more conveniently avail-able and so retailers and brands need to work closely together toengage shoppers, provide amazing experiences and, by doing that,drive conversion. "We're confident that with these new-look visual formats and iden-

tity we will continue to drive the strong double-digit growth we'veenjoyed year on year – whilst continuing to increase brand equityacross the M&M's range."

Confectionery News

Chupa Chupsdevelops specialnew toy formatfor children

M&M’s is a bestseller for Mars ITR

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Jewelry/Accessory News

78 GULF-AFRICA DUTY FREE & TRAVEL RETAILING NOVEMBER/DECEMBER 2011

leather bracelet with an elegant rhodiumplated clasp combined with a semi preciousbeaded bracelet made with turquoise,labradorite and sodalite. A slick leatherbracelet set is offered to the Tateossian Man.Starting with the smooth black Italian leatherbracelet followed by a textured brown Ital-ian braided bracelet. Both pieces are finishedwith a signature Tateossian rhodium plated

clasps for a truly masculine look. Both sets are exclusive to

Emirates for US$99 andwill be availablefrom January 2012.

New to Saudi

Airlines is the Tateossian Diamond dustcufflinks. Each cufflink sparkles with threecarats of genuine diamond dust set in a rosegold plated case. These beautiful and strik-ing cufflinks reflect the Tateossian mannerof using precious materials in unusual way.Available for SAR 995 (US$265) onboardSaudi Airlines from November 2011.

ateossian announces exclusive in-flight offerings on Emirates, Qatarand Saudi Airlines.

Paying a style tribute to thebracelet stacking look, Tateossian

has some great additions for fall on EmiratesAirlines. For the Tateossian Women a stack-ing set is a rich dark blue smooth Italian

Details, detailsA focus on materials, process, and quality details marks these accessories, new for 2012 BY HIBAH NOOR

New Tateossian exclusives for fall

TTateossian Diamond dust cufflinksare new to Saudi Airlines

Bally Spring/Summer 2012 Collection

coat – are reworked with a range of embell-ishing techniques to create a feeling of drama.

New features for this season include athree-dimensional print effect using embroi-dery and appliqué, which has been appliedby hand. Increased texture is imparted toprinted fabrics – which tend to look flat – withembroidered leather swirls, sequin-embroi-dered tulle and geometric crystal shards.

“Hero pieces” range from a simple strap-less lace dress appliquéd with lace and leatherpetals to a draped leather, one-shoulderedmonochrome dress. A sage leather and chif-fon T-shirt encrusted withembroidered, mirroredglass-like shards is pairedwith a pared-back whiteleather pencil skirt, whilea sleeveless day dress has abuilt-in sequin-stringednecklace and is printedwith a trompe l’oeil versionof the same. The naturalmotifs of petals and leavesare reflected in the use of

natural fabrics such as Swiss cotton poplin,soft nappa leather, silk crèpe de chine andmercerised cotton and silk lace across acolor palette of peony, rosemary, misty grey,wood bark and azure blue.

For shoes, Herz and Fidler have startedwith the cat’s-cradle sandal that is featured onBally’s 1951 centenary poster and reworkedit into a series of “barely there” pieces at everyheel height. Bally’s new bags for 2012 comein three shapes: pouch, A-frame and boxyclutch, and are highlighted by strings of leathersequins, lace-embroidered petals, swirls ofappliqué filo rolls and mirrored shards. Eachbag sports a mountain goat mascot motif.

ally has unveiled its Spring/Sum-mer 2012 Collection, which“explores a modern romance inwhich streamlined sportswearsilhouettes meet precious, petal-

strewn fabrics.” Leveraging Bally’s 160-yearheritage of leather craftsmanship, and themedaround Karlheinz Weinberger’s photographsof 1960s working-class teenagers, the col-lection is based on the notion of unexpectedjuxtaposition.

Joint Creative Directors Michael Herz andGraeme Fidler have created laser-cut softleather that simulates perforated sports meshin knee-length coats of meadow green, glac-ier blue and gentian yellow, simple A-line daydresses crafted from hand-embroidered laceand cotton-jersey t-shirts inset at the shoul-ders with padded leather motocross panels.

The second collection by Herz and Fidlerbrings a couture-luxe approach to moderndressing. It is tailored to the need for chicclothes that aren’t too formal. Iconic wom-enswear tropes – the trapeze dress, the shell top,the pencil skirt, the cardigan jacket, the collarless

BSurprising connections

The Soft Leather bracelet will beavailable onboard Qatar Airways

Bally Spring/Summer 2012 Collection

Page 79: Gulf-Africa Duty Free & Travel Retailing

The Gold of RoyaltyEvery piece of Clogau Gold jewellery contains a touch of rare Welsh gold as used to make generations of wedding rings for

the British Royal Family.

www.clogau.comwww.clogau.cowww om

Page 80: Gulf-Africa Duty Free & Travel Retailing

rédérique Constant Genève hasintroduced the new Heart BeatManufacture GMT Automatic.In the continuing tradition ofthe Heart Beat Collection, the

Heart Beat Manufacture GMT Automaticcomes in six models, each model a limitededition of 1,888 pieces for the stainless steelversions and 188 pieces for the 18K goldversions, all delivered in a wooden gift box.

The watches have a new second timezone functionality, a 42-hour power reserve,a diameter of 30.50mm, 27 jewels, KIF anti-shock system, Glucydur balance and aNivarox balance spring. Bridges of the move-

ment are decorated with Côtes de Genèveand perlage, and have anglage and rhodi-age finishing. Each dial has a second timezone counter and day/night indicator atthe 12 o’clock position, a Heart Beat aper-ture at the 6 o’clock position and black oxi-dized hands. The design promotes adjust-ment of time zones through the crown,eliminating a separate pusher. The wearerturns the crown clockwise to set both timezones, counter-clockwise to move only thecentral hands.

The Heart Beat Collection dates back to1994. The purpose was to distinguish themechanical Frédérique Constant watches

from their battery-operated counterparts. Thewatches have a dial aperture at the positionof the balance wheel to show that the move-ment inside is mechanical. The balancewheel beats 28,800 times per hour. The bal-ance wheel rotates clockwise and counter-clockwise on its axis in a large ruby jewel, withthe rotation controlled by the hairspring,which constantly coils and uncoils and is vis-ible through the open eye of the Heart Beat.

In 2004, Frédérique Constant joined thefraternity of Swiss watch makers that developand produce their movements in-house.From that point, it has aggressively developedand advanced its own movement program.

Furla set for major travel retail expansion

Constant beat

ing at Milan Malpensa T1 Schengen withDufrital; Turin via Sagat; Munich T2 withEurotrade; and Beijing T3 with Sunrise.

“Next year we already have a number ofmulti-brand and personalized cornersscheduled to open, with operatorsincluding World Duty Free (East Mid-lands, Newcastle and Manchester T1and T2); Gebr Heinemann (Osloand Ekaterinburg Airports); CTC(Paphos Airport); Airest Collezioni(Glasgow Airport); and DutyFree Philippines (Fiesta MallComplex),” continues Mun-day. “We also have a newopening confirmed withThe Nuance Group, NorthAmerica, for a shop in shopin Las Vegas T3. This willbe for the Autumn Winter2012 collection, which we’revery excited about.”

“To now have another 28 probable list-ings on top of this, all from one week inCannes, is just fantastic.” notes Munday.

2012 promises to be an excep-tional year for the Furla brand.“We’re planning on exhibitingboth at the Duty Free Showof the Americas in Orlandoas we continue to developour Americas business,and of course TFWA AsiaPacific in Singapore,”sums up Munday. c

wenty-eight new locations weregained by Furla this year at theTFWA World Exhibition. “It wasthe best show ever for the brand,”says Head of Travel Retail Gerry

Munday. “We trebled our appointmentsover last year and the response from buyersto the new collection was extremely positive.”

New business includes an exclusive list-ing onboard Emirates Airline starting inDecember for a ‘Nera’ Italian made blacknappa leather small shoulder bag with chain,perfect for day or evening use.

Additionally, Furla’s Spring Summer 2012Collection will be going into Antalya T1with Net Urart-Nuance, with Autumn Win-ter 2012 additionally listed in T2. Furla’sSS12 range is also going to sea with StarCruises via a new agreement with Valiram.

TFWA World Exhibition came at theclose of an extremely active year for Furla intravel retail, with refurbished shops open-

TThe Nera leather

bag will be availableexclusively on

Emirates Airline

Jewelry/Accessory News

F

80 GULF-AFRICA DUTY FREE & TRAVEL RETAILING NOVEMBER/DECEMBER 2011

Heart Beat Collection

Page 81: Gulf-Africa Duty Free & Travel Retailing
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Continued�investment�in�valued�brands

onsumer preferences aren’t static, and thankfully for globetrotters the travel retailindustry is especially good at staying ahead of trends and treating duty free shop-pers to new and exciting experiences. Gulf-Africa Duty Free recently spoke with Inter-national Beverage Holdings, Bacardi Global Travel Retail and Brown-Forman

about how they’re going about pleasing discerning spirits lovers in the Middle East. Among the latest developments from these suppliers are new liveries for two iconic

whisky brands, the introduction of a new spiced rum with a big heart and a collabo-ration between two American legends.

C

Liquor Report: Standout Spirits

iddle Eastern travelers are known fortheir love of whisky, and Interna-tional Beverage Holdings (Interbev)is breathing new life into some

promising brands with package redesigns andspecial editions that were introduced at thisyear’s TFWA WE in Cannes in September.The standout Old Pulteney single malt whiskyand Hankey Bannister blended Scotch whiskyhave been boldly redesigned. In addition, a spe-cial two-pack of Hankey Bannister Original and12 Year Old was recently introduced and hasbeen performing well in the Middle East.

Old Pulteney, which is one of the fastestgrowing malts in the industry, has revealeda vibrant new design with a bolder logo todrive a premium message and improve retail

display while at the same time retaining OldPulteney’s distinctive bottle shape and “Mar-itime Malt” positioning.

“Old Pulteney is distilled in Wick, Scot-land,” says James Bateman, Global Travel RetailManager at Interbev. “In fact, there are noother Scotch whisky distilleries there, so we’vecommunicated Old Pulteney’s unique originson the bottle. We’ve also taken the boat and putit to the back so that it can be seen through thefront of the bottle. These changes, combinedwith the redesign of the words ‘Old Pulteney,’have resulted in much more shelf standout.”

Hankey Bannister blended Scotch whiskyhas unveiled a striking, super-premium pre-sentation pack of its 21 year old “Partner’sReserve” that features an elegant black box, pro-

prietary bottle and gold embossedlabel. The new limited edition Han-key Bannister 25 year old “Partner-ship Blend” was also previewed inCannes. It comes beautifully encasedin a Lochinver decanter and luxuri-ous bordeaux-red presentation box.

This new expression has beenspecially selected by MasterBlender Stuart Harvey usingthe very finest non-peatedsingle malts, resulting in adistinctively delicate andsmooth flavor.

Interbev is banking onincreased traction in Asiaduty free with the abovesuper-premium HankeyBannister offerings. Bate-man told Gulf-Africa DutyFree that in the Middle East,

Hankey Bannister Original and 12 Year Oldexpressions are very popular, particularlywith Indian travelers.

“For the Gulf we’ve introduced a gift packfeaturing two one-liter bottles—Hankey Ban-nister Original and 12 Year Old,” Batemanexplains. “It offers a savings to shoppers andhas already been launched in airports inDubai and Sharjah to great effect.

“Duty free is a great channel for us togenerate awareness of these brands,” Batemancontinues. “Hankey Bannister is a very regionalbrand that is popular in India. As such, it’salso popular with Indians living and work-ing in Dubai, which helps us develop in theMiddle East.”

Whether�it’s�new�packaging,�never�before�seen�products�or�large-scale�promotions,�spirits�suppliersare�pulling�out�all�the�stops�to�keep�travelers�in�theMiddle�East�on�the�edge�of�their�seats���BY RYAN WHITE

M

The new presentation ofHankey Bannister 21 yearold “Partner’s Reserve”features an elegant black

box, proprietary bottle andgold embossed label

Old Pulteney has revealed a vibrant newdesign with a bolder logo to drive a premium

message and improve retail display

Thespiceof�life

Page 83: Gulf-Africa Duty Free & Travel Retailing

Two�icons�take�the�stage

The�heart�of�the�matter

www.dutyfreemagazine.ca GULF-AFRICA DUTY FREE & TRAVEL RETAILING 83

t this year’s TFWA WE, Bacardi GlobalTravel Retail launched Bacardi Oak-Heart. On the verge of its 150thanniversary, the company says that the

introduction of Bacardi OakHeart “reaffirmsthe brand’s leadership position in rum withexpressions now across all rum segments—traditional, flavored and spiced.”

Bacardi OakHeart is a smooth, spicedspirit drink of premium rum with a hint ofsmokiness and a unique velvet like smooth-ness. Straight from the heart of charredAmerican white oak barrels, this expertlyblended premium spirit drink containsselected flavors and spices that are sure topique travelers’ interests.

“We’ve had a very good response to Oak-Heart from operators in the Middle East,”says Hauke Marquardt, Bacardi’s Travel RetailRegional Director for Central and EasternEurope, as well as the Middle East. “There’sa palpable excitement around the product. Thepackaging is very unique, so I think it will makepeople stop and have a look. Sampling, wherepermitted, will be a key part of the launch, andwhen consumers taste the liquid we thinkOakHeart will have an even bigger impact.”

Bacardi OakHeart begins with rums mel-lowed in charred American white oak barrelsand blended together to create the perfect base.Selected flavors and spices such as cinna-mon, nutmeg, honey and vanilla are thenadded to this blend. The result is a bold,spiced spirit drink of premium rum with anamber hue, a hint of smokiness and uniquevelvet-like smoothness. Rich and oaky onthe nose, with aromas of smoke and driedfruit, Bacardi OakHeart has robust flavorwith a hint of maple and honey followed byvanilla and caramel.

Every aspect of Bacardi OakHeart wasdeveloped in collaboration with thousandsof consumers and hundreds of bartenders.More than 2,700 names were considered beforeOakHeart was selected, a process that tookmore than two years. The OakHeart namedraws on the charred oak barrels used to cre-ate this premium rum and in studies con-sumers and bartenders associated the namewith strength of character, unwavering loyaltyand the kind of friend they’d like to be and have.

No doubt to the delight of spirits loversin the Middle East, Bacardi OakHeart waslaunched in October. “In locations where

sampling isn’t available, travelers in the regioncan expect a number of exciting activationsin the near future,” says Marquardt. “Bac-ardi OakHeart a phenomenal product andwe’ll be investing heavily in it, not only in theMiddle East but around the world.” c

A

hat happens when you take twoiconic American brands—JackDaniel’s and Harley-Davidson—and put them together in a giveaway

promotion in one of the world’s busiest air-ports? Tony McIver, Brown-Forman’s AreaDirector Middle East & North Africa, answers:“It was a remarkably successful promotionwith sales up over fifty percent,” he said.

Refreshingly simple in its build-up and exe-cution, the promotion allowed each personpurchasing a Jack Daniel’s product at DubaiDuty Free during September a chance at win-ning a Harley-Davidson Fat Boy motorcycle.The winner was Fitim Sokoci of Kosovo. McIverstated that Dubai Duty Free was extremelyproactive in promoting the Harley-Davidsongiveaway, noting that Terminal 1 featured cus-tomized Jack Daniel’s furniture along withpromotional signage across the entire airport.

“Of course, having a Harley-DavidsonFat Boy motorcycle customized with JackDaniel’s logos and images—including thefamiliar Old No. 7—so prominently dis-played in the airport helped encourage par-ticipation,” McIver said.

The draw was conducted by McIver together

with Dubai Duty Free officials headed by ColmMcLoughlin, Executive Vice Chairman; GeorgeHoran, President; and Sharon Beecham, Man-ager – Purchasing & Vendor Support.

Brown-Forman has taken great strides ingrowing not only Jack Daniel’s, but the entireJack Daniel’s family of brands in the MiddleEast. The company recently introduced Gen-tleman Jack to a whole new group of con-sumers in the region’s duty free market byoffering a 375 ml bottle of Gentleman Jack freewith the purchase of two liters of Jack Daniel’s.“This promotion has proved to be a huge suc-cess everywhere we have run it,” McIver asserts.

While Jack Daniel’s Old No. 7 has growntremendously in the region for Brown-For-man, the increasing popularity of GentlemanJack is proof that there is great potential forJD variants and other brands in the region.The company will list the Jack Daniel’s 1954Gold Medal bottles and Woodford ReserveSpecial Finishes in MMI’s Le Clos outlet inDubai Airport in the near future.

W

Michael Schmidt, Dubai Duty Free Manager – RetailSales; Tony McIver, Brown-Forman Area Director Middle

East & North Africa; and George Horan, President ofDubai Duty Free, stand alongside the special Jack

Daniel’s/Harley-Davidson Fat Boy motorcycle

Jack Daniel’s wasprominently displayed

throughout Dubai Airportduring the Harley

Davidson promotion

Straight from the heart ofcharred American white oakbarrels, Bacardi OakHeartcontains selected flavors andspices such as cinnamon,nutmeg, honey and vanilla

Page 84: Gulf-Africa Duty Free & Travel Retailing

84 GULF-AFRICA DUTY FREE & TRAVEL RETAILING NOVEMBER/DECEMBER 2011

The Balvenie Forty named“Best Single Malt ScotchWhisky 35-40 Years” by 2012 Whisky Bible AwardsThe Balvenie Forty Batch Two has received high

acclaim at the 2012 Whisky Bible Awards.

The rare whisky has been named the “Best Sin-

gle Malt Scotch Whisky 35-40 Years.”

The Whisky Bible Awards is a high profile

blind tasting competition which culminates in

the publication of the world’s biggest-selling

whisky book—The Whisky Bible. Jim Mur-

ray, one of the leading commentators on world

whiskies and author of The Whisky Bible,

nosed and tasted 1,210 new whiskies and

re-tasted examples from over 200 distilleries

for the 2012 edition of the book.

Murray comments on The Balvenie Forty:

“Unless you have a good two hours

that you know will be uninterrupted

and unspoiled by cooking and other

extraneous aromas, don’t even think about

opening this bottle. Once you have, sit back

and experience something just a little special.”

Commenting on the win, the longest serv-

ing Malt Master in the industry, The Balvenie

Malt Master David Stewart, remarked: “To

have this precious whisky win such a promi-

nent award is a fantastic achievement for The

Balvenie, and something I am very proud of.

Jim Murray’s Whisky Bible is a much respected

authority within the industry and this recog-

nition speaks volumes for the dedication of our

team of talented craftspeople at The Balve-

nie Distillery.”

Each batch of The Balvenie Forty is a mar-

riage of rare whiskies from Balvenie Distillery.

Presented in a bespoke wooden box, handmade

in oak by Scottish craftsman Sam Chinnery and

hand-engraved by Sam’s father, only 150 hand-

numbered bottles of The Balvenie Forty Batch

Two were available worldwide.

Only 150 hand-numbered bottles of The BalvenieForty Batch Two were available worldwide

Liquor NewsPatrón rides high in the Middle East

About Patrón Spirits International

While the breakout success of Patrón Silver Tequilaover the last few years in duty free is hard tomatch, Patrón Spirits International reports thatXO Cafe has been met with open arms by theindustry in the Middle East, not to mention in therest of the world. The most recent Gulf operatorto list the product is Dubai Duty Free and GregCohen, spokesperson for Patrón, says that XOCafe is proving very popular across the region: “In2011 we’ve listed the product in duty free in Qatar,Cypress and Beirut,” he notes. Patrón XO Cafe is an extraordinary blend of

ultra premium tequila and the pure, natural essenceof the finest coffee. The taste is dry, not sweet aswith most low proof coffee liqueurs. The higherproof brings out the flavor of the pure coffee essenceand the ultra premium tequila. It is excellent for sip-ping as well as a premium ingredient in a cocktailor as a unique and delicious dessert topping.Patrón says that it will continue to pursue new

listings in the Middle East into the new year. Thecompany is also developing a number of new GWPpromotions that will be implemented worldwide inthe coming months.

This year Patrón XO Cafe has been listedin duty free in Qatar, Cypress and Beirut

Patrón Spirits International is one of the fastest-growing companies in theglobal beverage alcohol industry. The company’s flagship brand, Patróntequila, is an ultra-premium luxury white spirit that’s delicious on the rocksand mixes flawlessly into most any cocktail. From the highest-qualityWeber Blue agave plants grown in the highlands of Jalisco, Mexico, to thecenturies-old distillation process, to the signed, handcrafted glass bottles,Patrón is produced with unparalleled attention to sophistication and detail. Tequilas in the Patrón portfolio consist of Gran Patrón Burdeos, Gran

Patrón Platinum, Patrón Silver, Patrón Reposado and Patrón Añejo. Thecompany also produces Patrón XO Cafe and Patrón Citrónge (extra fineorange liqueur), as well as Pyrat Caribbean rums, and Ultimat vodka fromPoland.

Page 85: Gulf-Africa Duty Free & Travel Retailing

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Page 86: Gulf-Africa Duty Free & Travel Retailing

Liquor News

86 GULF-AFRICA DUTY FREE & TRAVEL RETAILING NOVEMBER/DECEMBER 2011

White Gold broke into duty free and travel retail just

two years ago and has already seen some impressive

successes. The company’s products are now listed in

Gebr Heinemann and Aer Rianta International stores

worldwide, as well as with Dufry shops in Russia.

“We are currently in negotiations with other oper-

ators such as DFS Group, Aldeasa - WDF, The

Nuance Group, B&S Paul Global, Weitnauer, ATU

Duty Free and many others, who seem to be very pos-

itive about the idea of launching of our main brands,

White Gold Black Edition vodka, White Gold vodka

and Russian Gold vodka,” says a spokesperson for

the company.

White Gold says that given the growth

of the vodka subcategory, especially in

duty free, it sees a great opportunity for its

brands as they continue to penetrate the

channel. Currently working on its own to

supply clients and organize activities, the

company is interested in meeting with

experienced distributors to discuss increas-

ing the reach of its brands.

“Our brands have a perfect presenta-

tion and are known for their quality,” the

company says. “We’re looking for a com-

pany with sufficient sales and marketing

strength to drive our brands into this

competitive market and share in

White Gold’s success.”

Indeed, the company’s prod-

ucts are getting noticed on the

world stage. According to a recent

IWSR report, vodka brand Gzhelka,

produced and distributed by White

Gold, is a new entrant on the list

of the top 20 vodka brands world-

wide. The company’s latest offer-

ing is a new variant called White

Gold Black Edition. The limited

edition spirit comes in a sleek

black bottle and is triple-filtered in

black coal and a silver ion filter

for crystal clarity and a pleasant

palate. The variant is designed to

appeal to trendy clubgoers, with a

design that pays tribute to the tra-

ditional cues of the original spirit

while communicating a sense of

modernity and mystery.

White Gold looks for continuedsuccess in travel retail

White Gold Black Edition istriple-filtered in black coal anda silver ion filter for crystalclarity and a pleasant palate

Belvédère Duty Freestrengthens its presencein the Middle East

Estate (top right), a new ultra premium vodkafrom Sobieski, and Marie Brizzard Grand

Orange, just two of the many new releases inBelvédère Duty Free’s strong portfolio

Torben Vedel Andersen, Director of Global Duty Free atBelvédère Duty Free, tells us that the company has madegreat strides over the last year in the Middle East. All ofBelvédère’s core brands—Sobieski Vodka, Marie BrizzardLiqueurs, Danzka Vodka and Gautier Cognac—are now listedat Dubai Duty Free, and listings are also being secured inother airports across the region.“The Middle East is a fast growing business for us and

becoming ever more significant in all aspects,” Andersenexplains. “Marie Brizard Liqueurs have been significant intheir category for many years in the region, so we arebuilding our other core brands on the entry that the liqueurshave provided. “Our vodka range, which includes Sobieski and Danzka,

is well distributed and rapidly growing,” he continues. “Asregional travel grows in importance, we’re confident that ourbrands will grow as well, both in volume and distribution.”Belvédère’s most recent releases across its spirits ranges

include Gautier Napoleon, a blend of eaux-de-vie agedbetween 6 and 25 years from the four premiers crus of theCognac region; Sobieski Estate, a super premium vodkain an elegant signature bottle; and ultra premium Marie Brizardliqueurs Chocolat Royal and Grand Orange.

“The Middle East is a fast growingbusiness for us and becoming

ever more significant in all aspects.”

Torben Vedel Andersen, Director of Global Duty Free,

Belvédère Duty Free

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Liquor News

88 GULF-AFRICA DUTY FREE & TRAVEL RETAILING NOVEMBER/DECEMBER 2011

World of Patria developsnew super-premium port-folio for travel retail

“We’re a young andvibrant company lookingto partner with equallydynamic and excitingbrands that bring some-thing new to the table,”Kevin Baker, Director, World

of Patria International

Established travel retail wine and beer distributor World of PatriaInternational (WOPI) is expanding its offer with a specially selectedportfolio of premium and super-premium spirits and wines. Work-ing primarily with independent and niche companies to create anoffer that is unique within the category, the company has recentlysigned an exclusive global travel retail distribution deal withChinggis Khan Vodka and with Inish Turk Beg Irish whiskey forselected markets.The development follows the appointment earlier this year of

Director Kevin Baker, who has brought unparalleled experienceof the spirits business to WOPI. Following more than 20 years’service with IDV/Diageo and Brown-Forman, reaching the posi-tion of Global Key Accounts Director Travel Retail, Baker is wellplaced to lead the portfolio development.“Our business has developed very quickly since being founded

in 2006 and we now enjoy extensive coverage for our beer andwine portfolio on ferries, cruise lines and airports,” says WOPI Man-aging Director Rob Nichols. “However, we felt that there is a sig-nificant opportunity to develop a premium/super premium spir-its offering, and Kevin, with his significant credentials within theindustry, is the perfect man for the job.”In a short space of time, WOPI has taken on distribution for

a number of brands including globally for The Last Drop Distillersand the Duncan Taylor Scotch Whisky range; and for Europe andthe Americas, Orbis Aged World Whiskey, Wemyss Malt Whiskies,Darnley’s View Gin and Sir George Potstill Brandy. “Travelers are increasingly looking not just to trade up in travel retail,

but to find niche brands that they are less familiar with. We’re a youngand vibrant company looking to partner with equally dynamic andexciting brands that bring something new to the table,” says Baker.“In many cases—Chinggis Khan and Inish Turk Beg for example—these are completely new entrants to the travel retail channel. “Critically, we’re also very aware that travelers are keen to find

products not available in their home market and are working withbrandowners to develop limited editions and exclusives, such asOrbis Aged World Whiskey and Wemyss Single Cask Malt Whiskies.”With a secure and growing business in European travel retail, WOPI

is now looking to further expand into both the Americas and Mid-dle East/Asia and will be exhibiting at next year’s Duty Free Show ofthe Americas.

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Strength squaredCompany News: Pernod Ricard Gulf

90 GULF-AFRICA DUTY FREE & TRAVEL RETAILING NOVEMBER/DECEMBER 2011

seems poised to take an even bigger share ofthe premium whisky market. Ultra-premiumspirits such as Royal Salute are also on PernodRicard Gulf ’s radar. In fact, the brand is partof the supplier’s premiumization program, theprimary function of which is to educate con-sumers and possibly facilitate a trade-up.

In terms of added value for shoppers,Pernod Ricard and Chivas Regal are launch-ing an innovative campaign in travel retailin partnership with private nightclub LeBaron. The campaign, dubbed “The Art ofHosting,” includes a limited edition gift pack,in-store displays and an exclusive website.

The Chivas Regal 12 Year Old Le Baron lim-ited edition gift-pack launches this Novemberin travel retail outlets across Europe, Asia andthe Gulf, and will reach the US in March 2012.It will retail at the standard Chivas Regal 12 YearOld price and in selected markets the bottle willcome with a digital card containing a uniquecode that will allow travelers access to lockedcontent and the ability to download an exclu-sive ten track playlist, selected and mixed bythe Le Baron Club DJ. The site also showcasesseven short films featuring the Le Baron gen-

company Pinel and Pinel, the trunk bar includesa bottle of Chivas Regal 12YO, four brandedglasses, a cocktail shaker, a music docking sta-tion and an iPad 2. Other activities include aGWP of a branded trolley bag or holdall.

Global activations aside, Freeborn alsoplaces great importance on developing localpromotions: “Pernod Ricard Gulf also hasan obligation to deliver activations that wecan develop on a local basis. For example,we initiated a promotional campaign inDubai called Chivas Art where we com-missioned three local artists to give us theirinterpretation of Chivas 12, 18 and 25.

“Travelers who purchased Chivas entereda prize draw to win one of the three worksof art,” he continues. “It worked very well andgave us access to some very interesting datafrom the travelers that participated.”

Freeborn says that shoppers in the Mid-dle East can expect more—both globallyand locally—from Pernod Ricard Gulfthroughout 2012. “We’re constantly askingourselves what we can do to build brandequity, drive volume and gain market share.Fortunately for travelers, this results in somephenomenal products and promotions. We’relooking forward to delivering more of thesame in the future.” c

tlemen, Andre and Lionel,advising users on how tobe the ultimate host.

In addition to theabove, Chivas Regal 12Year Old has produced 20bespoke trunk bars—theultimate hosting package,which will be used whollyfor travel retail competi-tion prizes. Created by pres-tigious French luxury trunk

ulf-Africa Duty Free recently hadthe pleasure of sitting down withDavid Freeborn, Managing Direc-tor of Pernod Ricard Gulf. Hetold us that despite some down-

trading over the last couple of years in theregion, the company’s focus is back on its pre-mium offerings given the strong airport traf-fic and duty free sales statistics coming outof many locations in the Middle East.

As with any supplier, Pernod Ricard Gulf’sconcentration lies in growing ahead of oper-ators. Given a strong stable of whiskies—inar-guably the spirit of choice in the MiddleEast—that includes Ballantine’s, ChivasRegal and Royal Salute, it’s no surprise thatPernod Ricard has seen stellar results in thefirst half of the year.

“From an operator perspective, DubaiDuty Free, Abu Dhabi Duty Free and QatarDuty Free all announced very strong first sixmonths of the year,” Freeborn explains. “Theknock-on effect from our perspective is thatwe’ve seen good growth across our entireportfolio. If you take Dubai Duty Free as anexample, their liquor business over the first

six months of 2011 was up about 17% invalue terms at retail. Obviously what wewant is to be ahead of that 17%, which inDubai Duty Free’s case we are.”

While the volume brand in Pernod RicardGulf ’s portfolio is Ballantine’s, premiumbrands like Chivas Regal 12 Year Old and 18Year Old are driving value. Freeborn saysthat Chivas 18 has been gaining some verygood traction over the last two years or so. Atthis stage in the game, given increasing dutyfree sales in general in the region, the brand

G

“We’re�constantly�ask-ing�ourselves�what�wecan�do�to�build�brand

equity,�drive�volume�andgain�market�share.”

David Freeborn, Managing Director, Pernod Ricard Gulf

Strong sales from operators in the Middle East combined withhigh demand for Pernod Ricard’s premium spirits combine toboost the supplier’s numbers in the region BY RYAN WHITE

The Chivas Regal 12 Year Old Le Baron limitededition gift-pack launches this November in travel

retail outlets across Europe, Asia and the Gulf,and will reach the US in March 2012

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ving the Gulf and beyonderving the Gulf and beyond

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A happyconundrum

92 GULF-AFRICA DUTY FREE & TRAVEL RETAILING NOVEMBER/DECEMBER 2011

region,” Roberts says. Fortunately for BB&R Spirits, Asians are knownfor their love of whiskies and penchant for ultra-premium brands. Justas important is the fact that Middle Eastern travelers have a reputa-tion of their own for being fans of luxurious brown spirits. “DubaiDuty Free’s nine-month sales to the end of September exceeded US$1billion. This also reflects a very positive trend,” Roberts continued.

Challenges and opportunitiesTo date only a small number of The Glenrothes Vintages has beenreleased, such is the exceptional quality required by the distillery beforedeciding to bottle the liquid. As a result, each vintage is, by defini-tion, rare and finite and only available on allocation. Each vintagehas its own unique personality, and remarkably, of the vintages pro-duced to date more than half are no longer available.

The Glenrothes is distilled in some of the tallest stills on Spey-side at an unusually slow rate, ensuring an elegant and fruity spirit.In addition, maturation in a combination of Sherry-seasoned andrefill oak casks develops the balance and complexity of the whisky’sflavors, a mélange of ripe fruits, juicy citrus notes, creamy vanillaand hints of exotic spices that has proven very popular with whiskyaficionados the world over.

Indeed, this obsession with quality represents both The Glenrothesbiggest potential for future growth in the Middle East and its biggestobstacle, says Roberts. “The opportunity is there for BB&R Spiritsto grow presence in retail in the Middle East through the rangingof multiple expressions of The Glenrothes,” he explains. “Ironicallythis is also one of our greatest challenges: As a limited release Sin-gle Malt—we only use 2% of the distillery output in The GlenrothesVintages—stocks are continually under pressure.”

BB&R Spirits is currently discussing the introduction of newexpressions with some regional airports in the Middle East. The impor-tant point, says Roberts, is that the balance of expressions be appro-priate for each airport’s passenger profile. This way, travelers canenjoy vintages from different years.

Promoting the brandIn terms of promotion, Roberts notes that The Glenrothes 10clminiature is popular as a gift with purchase. “It is ideal to sharewith friends or as a gift,” he says. Given the popularity of theGWP, BB&R Spirits will continue with this promotion in themonths to come in selected airports in the Middle East.

BB&R Spirits also continues to focus on education throughpromoters in Dubai Duty Free. Roberts cites education as a

very important factor in terms of enabling consumers tounderstand The Glenrothes, particularly in environ-

ments where sampling is not possible.The buzzword for BB&R Spirits in the Mid-

dle East certainly seems to be “potential.” Whilethe region only represents a relatively small por-tion of overall sales of The Glenrothes, pos-itive indicators coming out of the Gulf havegiven Roberts cause of optimism. “We believethere is good potential for future growth inthe Middle East as airports emerge as transithubs and tourists return to destinations suchas Dubai.” c

ulf-Africa Duty Free recently had the opportunityto speak with Johnny Roberts, Asia Business Direc-tor at Berry Bros. & Rudd (BB&R) Spirits, aboutthe company’s business in the Middle East. Quitesimply, he told us unequivocally that it’s growing.

The Glenrothes, BB&R Spirit’s high-end Speyside Sin-gle Malt, has proven to be the company’s bread and but-ter in the Middle East and is now listed in five majorairports there. With a range of expressions avail-able and momentum gaining, Roberts sees greatpotential for the future of the brand in the Gulf.

The Asian connectionLikely the first thing to catch readers’ attentionis the fact that Roberts handles the Asia regionfor BB&R Spirits. However, he notes that giventhe large number of Asians traveling to theMiddle East, and indeed all over the world, heactually has quite a stake in making sure TheGlenrothes gains a firm foothold in the Gulf.

“A very positive sign is the increasing num-ber of Asian consumers traveling through the

G

Company News: Berry Bros. & Rudd Spirits

To date only a small number of The GlenrothesVintages has been released, such is the exceptionalquality required by the distillery before deciding to

bottle the liquid

The increasing popularity of The Glenrothes in the Middle East putsBB&R Spirits in the curiously pleasingposition of keeping up with demand forwhat is an exceptionally rare whisky

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Company News: Japan Tobacco International

94 GULF-AFRICA DUTY FREE & TRAVEL RETAILING NOVEMBER/DECEMBER 2011

a strong increase of 5.6%, predominantly driven by Rus-sia, while total shipment volume declined 4.4%. TheGFB increase could not offset the decline in low-endlocal brands in Russia and continued industry con-traction in the Ukraine. JTI says that market shareincreased in Russia.

In the rest of the world, GFB shipment volumegrowth accelerated to 8.0% and total shipment volumeincreased 6.0% driven by growth in the Middle East.Market share grew in Turkey, Taiwan and Malaysia.

Global Flagship Brands For Winston, shipment volume growth acceleratedto 10.1% as a result of momentum in the Middle East,Russia, Italy and Turkey. For Camel, however, ship-ment volume declined 2.0% due to market down-trading in South and Western Europe. Shipmentvolume of the Mild Seven brand declined 5.2% dueto temporary loss of competitive pricing in Korea,says JTI. LD proved to be a standout, with ship-ment volume increasing 14.6% due largely to momen-tum in Russia and Poland.

Nine-month performanceFrom January to September, core net sales increased12.8% to US$8,466 million driven by pricing, GFBshipment volume growth and favorable currencyexchange movements, reports JTI. At constant ratesof exchange, core net sales increased by 8.4%.

GFB shipment growth accelerated to 4.1% drivenby Russia, the Middle East, Italy and Turkey. Total ship-ment volume remained stable at 319.6 billion ciga-rettes. Growth momentum in the Middle East, Italy,Romania and Taiwan was offset by lower shipmentsin the Ukraine, Spain and Greece due to industrycontraction. In Russia, GFB volumes kept growing whilelow-end local brands declined. c

apan Tobacco International (JTI) contin-ued to report solid revenues in the thirdquarter of 2011, with core net sales growing19.3%, largely driven by strong pricing andglobal flagship brand (GFB) shipment vol-

ume growth. At constant rates of exchange, both corenet sales and core net sales per thousand cigarettesincreased by 12.5%. Furthermore, GFB shipment vol-ume grew 5.8% driven by Russia, the Middle East,Italy and Poland.

For the first nine months of the year (January toSeptember), core net sales increased 12.8% drivenby strong pricing and GFB shipment volume growth.At constant rates of exchange, core net sales grew 8.4%and core net sales per thousand cigarettes increased8.3% during the same period. GFB shipment volumegrowth accelerated to 4.1% driven by Russia, the Mid-dle East, Italy and Turkey. Year-on-year market sharegrew in all key markets, says JTI, namely Turkey, Italy,Taiwan, France, Russia, Spain and the UK.

Shipment volume by cluster: July to September 2011In South and West Europe, JTI reports that GFBshipment volume continued to grow 2.4% whiletotal shipment volume increased 1.5% as a result ofmomentum in Italy being partly offset by continuedindustry contraction in Spain. Market share increasedin Italy, France and Spain.

GFB shipment volume growth accelerated to 9.3%in North and Central Europe, says JTI, driven bystrong performance in Poland. Furthermore, ship-ment volume increased 4.2% and was supported bya favorable comparison resulting from trade inven-tory adjustments in 2010 in the UK. Market share grewin Poland and the UK.

In JTI’s CIS+ region, GFB shipment volume showed

J

One of JTI’s Mild Seven-branded smoking lounges;

shipment volume of the MildSeven brand declined 5.2%

due to temporary loss ofcompetitive pricing in Korea

From July to September, shipment volumes of Camel declined 2.0% due to market down-trading inSouth and Western Europe

The Middle East was a standoutfor Winston—the brand’s shipmentvolume growth grew to 10.1% dueto momentum in the Middle East,Russia, Italy and Turkey

Steady as she goesThe Middle East plays a key role in JTI’s July to September statistics, driving global flagship brand shipment growth BY RYAN WHITE

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The height of perfection

Company News: Habanos

96 GULF-AFRICA DUTY FREE & TRAVEL RETAILING NOVEMBER/DECEMBER 2011

(D.O.P) in the Vuelta Abajo (D.O.P) zone ofCuba, aged for a minimum of two years.

Habanos notes that the Cohiba 1966 lim-ited edition has been produced in very smallquantities. All the Habanos were made byexpert rollers in Cuba in order to create thisexquisite Habano for the most distinguishedsmokers.

Short Hoyo PirámidesThe Short Hoyo Pirámides limited editionis designed for the best connoisseurs andenthusiasts of the Hoyo de Monterrey brand.Short Hoyo Pirámides is a Habano of idealdimensions, making this limited edition aninvaluable gift for those who prefer Habanosof lighter flavors and for newcomers to theworld of Habanos cigars. Thesmooth and complex flavor of theblend and the delicate aroma cannow be enjoyed in the new Figu-rado format.

As can be expected, all theHabanos in this limited edition weremade completely by hand by expertrollers using tobacco leaves care-fully cultivated and selected. TheShort Hoyo Pirámides is currentlyavailable worldwide.

Allones ExtraAllones Extra (44 ring gauge x 143mm length) marks the first time thatRamón Allones has been given alimited edition treatment. Habanosnotes that the brand is character-

ized by its intense flavor, making it pre-ferred by smokers who seek full bodied cig-ars with exquisite aromas.

Connoisseurs are sure to appreciate thisrare offering given that Ramón Allones, firstcreated in 1837, is one of Habanos’ oldestbrands. As with all the company’s limited edi-tions, the Allones Extra offering is charac-terized by vitolas that do not appear in theusual range of the brand portfolio, andwhich are distinguished by the careful selec-tion of leaves—wrappers, fillers andbinders—that have been aged for a periodof at least 2 years. c

abanos wowed attendees at thisyear’s TFWA WE with a selec-tion of new products availablein worldwide duty free. Amongthe company’s flagship offer-

ings for 2011 are the new Partagas Serie Dno. 5, which complements the existing SerieD range, and a number of limited editionvitolas including Cohiba 1966, Short HoyoPirámides from Hoyo de Monterrey andAllones Extra from Ramón Allones.

Partagas Serie D no. 5After Habanos’ recent introduction ofPartagás Serie E, a brand very much appre-ciated historically by smokers who enjoyintense flavors, the company has now releasedSerie D. The vitola of the new Partagás SerieD No. 5 (50 ring gauge x 110 mm length)formed part of the 2008 Limited Edition andHabanos notes that it was very much appre-ciated by those smokers who wanted toenjoy all the flavor of a Partagás Serie D.

Habanos says that the character ofPartagás compressed in this short format willreveal its aroma and allow for the enjoymentof its intense flavor in a format that is shorterin length and with a smoking time of around20 minutes. According to Habanos, the cigaris “truly adapted to the new circumstancesthat affect the smokers around the world.”

Cohiba 1966Cohiba 1966 (52 ring gauge x 166 mmlength) is a limited edition commemoratingthe 45th anniversary of Cohiba, the flag-ship brand of Habanos. The 10 Habanoshave been made totally by hand using aselection of tobacco leaves aged for a mini-mum of two years from the plantations ofSan Juan y Martínez (D.O.P) and San Luis

H

The importance of Middle Eastern duty freeBesides being lovers of luxury products in general,many Middle Eastern travelers are particularlyfond of Habanos cigars. Gulf-Africa Duty Freespoke with Ana López García, Director of Marketingat Habanos, about what these new releases meanfor the company’s business in the Middle East. “The duty free market, and specifically travel retail

in the Middle East, is very important for Habanos,”Lopez Garcia told us. “In fact, travel retail repre-sents about 25% of our sales in the Middle East.“Duty free shoppers, and cigar aficionados in par-

ticular, love to see new, exciting luxury products andI think these latest releases are perfect for the trav-eler who wants to pick up something truly unique.”

The new Partagás Serie D No. 5 (50 ring gauge x110 mm length) is one of the many new productsthat will be available worldwide from Habanos

Habanos has a number of new releases out this year that are sure to please even the most demanding cigar aficionados in the Middle East BY RYAN WHITE

Ramón Allones is characterized by itsintense flavor, making it preferred bysmokers who seek full bodied cigars

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J. Cortès releases new travel retail exclusive packaging

Arnold Andréreleases new productsavailable in duty free

98 GULF-AFRICA DUTY FREE & TRAVEL RETAILING NOVEMBER/DECEMBER 2011

Apart from the recent formation of the Tobacco House ofSweden, one thing that’s certainly helping Arnold André remaincompetitive is its stable of bestselling products. The companyrecently released Handelsgold Sweet Chocolate Cigarillos.While chocolate is certainly a popular flavor, Arnold André alsooffers other Handelsgold taste variations such as Peach, Cherry,Vanilla and Classic. Arnold André reports that international sales have tripled since the intro-

duction of Handelsgold Sweets. The attractive price, trendy aromas and atten-tion grabbing presentation at the POS have reportedly resulted in price-sensi-tive smokers spontaneously picking Handelsgold Sweets. The Sweets are in espe-cially high demand in the Netherlands, Sweden, Greece and Eastern Europe, says ArnoldAndré, and Austrian and Swiss smokers have also acquired a taste for them. The new Sweet Chocolate flavor has a sweetened mouthpiece, a pleasurable chocolate aroma and a

dark wrapper. The product is available in a 5-pack for a very competitive price. Depending on availablespace, there are several forms of merchandising presentation available: a large Handelsgold Tower, a Han-delsgold dispenser, a counter display or a shelf unit. “The dispenser has been a particularly effective way of selling Handelsgold Sweets,” explains Kon-

stanze Marth, Export Manager at Arnold André. “It brings to mind a dispenser in some discount or bulkstores. Combined with the very competitive price, this means that a lot of people reach in a grab acigar or two when at the counter.” In addition to Handelsgold, Marth asserts that Clubmaster Minis are still performing very well. The

Clubmaster Mini line includes Superior Vanilla, Mini Vanilla Filter, Mini Sumatra and the recentlyreleased Clubmaster Chocolate variety.“A lot of competitors have incorporated chocolate in some way or another, but it’s very hard to get

a good flavor,” Marth explains. “With the new chocolate-flavored Clubmaster Minis, we worked reallyhard to get a pleasing chocolate taste and aroma. The product has already proven itself domesticallyin Germany and it is now available worldwide.

Emmanuel Ghesquière, Export Manager at J. Cortès, told Gulf-Africa Duty Free recently that the company has released two newtravel retail exclusive box sets for its Sumatra and Dominican wrap-per cigarillos. Each box set contains 5 packs, with 10 cigarillosin each pack. “We’ve had a strong presence at duty free trade shows in recent

years and to continue getting attention in this market, we devel-oped a travel retail exclusive presentation,” Ghesquière said. The box sets were revealed at the TFWA WE in Cannes and

various operators from across the Middle East have alreadyshown interest. Ghesquière is also planning on being present atnext year’s IAADFS exhibition in Orlando, noting that last year—his first time at the show—was very positive.“Innovation is extremely important, especially in this market,”

Ghesquière told us. “Travelers around the world can expectmore innovative duty free-specific products from J. Cortès in 2012.”

Handelsgold SweetChocolate Cigarillos are the

latest flavored product inthe range; other bestsellersfrom Handelsgold includePeach, Cherry, Vanilla and

Classic varieties

Tobacco News

Clubmaster Mini cigarillos continue to be one of Arnold André’s most successful ranges; a chocolateflavored variant was recently introduced(Pictured: Clubmaster Mini Vanilla)

The new travel retail exclusive 5-packs from J. Cortès; both the Sumatrawrapper (left) and Dominican wrapper (right) varieties are shown

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Davidoff seessuccess�with�PuroD’Oro�Momentos

www.dutyfreemagazine.ca GULF-AFRICA DUTY FREE & TRAVEL RETAILING 99

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

Since 2008, electronic cigarettes have become increasingly pop-ular as an alternative to smoking traditional tobacco cigarettesgiven the fact that e-cigarettes can be used virtually anywhere.At the forefront of this burgeoning movement is pioneering e-cigarette company Vapor Corp. [OTCBB: VPCO], which offers arange of e-cigarette brands—from the rechargeable Fifty-One brandto the disposable Krave brand—to satisfy the varied needs of vir-tually any smoker.

“Vapor Corp.’s e-cigarette brands are distinct from many othere-cigarettes available today, both in terms of the quality and thecutting-edge technology employed,” says Adam Frija, Director ofBusiness Development at Vapor Corp. “Our electronic cigarettesdo not emit any second-hand smoke. Instead, our products emitan odorless vapor. Our electronic cigarettes look like, taste like andfeel like a cigarette, but they aren't cigarettes."

The filter of the Fifty-One contains flavoring, nicotine and anatomizer that essentially vaporizes the nicotine. When you inhale,a microcomputer activates the atomizer and the battery (containedin the white part of the e-cigarette). The end of the Fifty-One evenglows when you puff it.

Over the last 3 years, Vapor Corp. has crossed into virtuallyevery distribution channel available in the US, such as conveniencestores, tobacco shops and supermarket chains. The company alsosells direct-to-consumer on its website and has carved out a veryrespectable niche selling in mall kiosks throughout the US.

The worldwide duty free channel is attractive to a company likeVapor Corp. for two main reasons, says Frija: “First of all, airportsare very high-traffic areas for retail, which is what any company looksfor. Furthermore, e-cigarettes are a perfect fit for the duty-free cus-tomer, for the busy traveler on the go. Vapor Corp. has increasedits business exponentially year over year since its inception and I haveno doubt that both the traveling public and the duty free industrywill see immense value in our brands.”

Davidoff tells Gulf-Africa Duty Free that PuroD’Oro Momentos have received a warm replyin duty free since their launch late last year. David-off calls the cigars perfect for “aficionados who,despite being pressed for time, do not wish toforgo the exquisite experience of a spirited andemphatically aromatic Dominican Puro.” Puro D’Oro Momentos boast Davidoff Yamasá

wrapper leaves in combination with Dominicanbinder and the filler tobaccos, making for a spicy,full-bodied smoke with hints of coffee and spices.The Puro D’Oro cigar line continues to generatestrong demand among passengers in the Middle

East and Gulf markets. Indeed, the product has been launched via DubaiDuty Free, ATU Duty Free, Syria Duty Free and many others. More chan-nels will come online as the year progresses, asserts Davidoff.

Publicly traded pioneer leadselectronic cigarette industry

Davidoff’s PuroD’Oro Momentos

KT&G sets its sights on the Middle East

Given the successof its cigarettebrands in Asiaduty free, KT&G’sKelly Song tellsGulf-Africa DutyFree that high-endlines such as ESSEand BOHEM maybe a good fit forthe Middle East

In a recent conversation with Kelly Song of KT&G, Gulf-Africa Duty Free learned that the company hasset its sights on the Middle East for possible future expansion plans. “Our products have proven to beextremely popular in Asia, both in duty free and domestically,” said Song. “We feel that the Middle Eastmay be a good fit our high-quality cigarette lines.”While no concrete plans have yet been laid, KT&G says it remains open to speaking to operators

in the Middle East about the possibility of listing its products in the region. Most recently at this year’sTFWA WE in Cannes, KT&G featured the flagship ESSE and BOHEM brands as well as the new brandRAISON. KT&G also showcased the ESSE Compact Slim and ESSE AURA (flavored superslim)brands. Along with its super-slim brand, KT&G is targeting young adult consumers with king size RAI-SON and BOHEM cigarettes.ESSE sales volume and brand awareness has been growing strongly, KT&G says. ESSE is now

sold in more than 40 countries in the super-slim category, appealing to young, trendsetting customersin their 20s. As the female smoker category grows and health awareness spreads, the super-slim, low-tar cigarette market is growing, helping to drive ESSE sales.Selling well in South Korea, the RAISON brand is targeted at consumers in their early 20s. “RAISON

provides a clean and smooth fulfillment of smoking through dual charcoal filter and herb flavor,” KT&G says. BOHEM is made with 30% premium cigar leaves and is designed for “delicate smokers who pre-

fer sweet and profound aromas.” The vintage style package design reflects “smokers with a bohemianspirit who have a chic style, professional careers and self-confidence.”

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100 GULF-AFRICA DUTY FREE & TRAVEL RETAILING NOVEMBER/DECEMBER 2011

LIQUOR AND TOBACCO

New & NotableBY KIM CARRERA

Il de Ré Cliffside Cellar Company: Camus Wines & Spirits Description: Cliffside Cellar is drawnfrom eaux-de-vie, grown, distilledand aged on the Island of Ré,the most westerly part ofCognac AOC. Distinctivelymarine and mellow, CliffsideCellar undergoes finalmaturation in a cellar deep in the Fort de la Prée

Davidoff Puro d'OroMomentosCompany: OettingerDavidoff GroupDescription: Davidoff Purod'Oro Momentos arehand-rolled in DavidoffYamasá wrapper leaf,which in combination withthe Dominican binder andthe filler tobaccos makesfor a spicy, full-bodiedsmoke with hints of coffeeand spices

Prince Hubert de Polignac Company: H.Mounier Description: The Polignac CognacHouse has introduced a brand newrange that includes VS,VSOP and XO cognacs.The packaging containsa new striking logo thatevokes two intertwinedswords, symbolizing thenoble and historicvalues of the brand

Bottega Goldcompany: Distilleria BottegaDescription: Bottega Gold is aspecial Prosecco, whichfeatures an aromatic bouquetthat is emphasized by thesparkling of the fresh mist,giving the wine an intriguingtaste of Golden apple, pineappleand mango

Balmoral Dominican Selection Churchill TubosCompany: Agio CigarsDescription: The cigars arefinished with a Connecticut seedand a light-brown wrapper fromEcuador. Each cigar is individuallypacked in cellophane to optimizehumidity control and is presentedin a tin tube for both protectionand convenience

CONFECTIONERY

Cocoa Truffles ballotin 200gCompany: GuylianDescription: Guylian presents thenew 200g Cocoa Truffles ballotin.The collection contains 23 pieces ofhigh quality Belgian chocolates,perfect for sharing

Neuhaus Dessert CollectionCompany: NeuhausDescription: This collectionconsists of delicious flavorssuch as a crème brûlée,sabayon, tarte tatin, tiramisuand moelleux au chocolat -chocolate cake with acreamy centre

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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.Silk épil 7 Dual Epilator

with

Epilator

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New & Notable

102 GULF-AFRICA DUTY FREE & TRAVEL RETAILING NOVEMBER/DECEMBER 2011

Toffifee Company: Storck Travel Retail LtdDescription: A crunchy hazelnut in caramel with nougat cream and a drop of darkchocolate on top. A combinationthat's perfect for every taste

Spring/Summer 2012 CollectionCompany: FurlaDescription: The collection mixes bagswith shoulder straps to create uniquepieces for the woman’s wardrobe

Spring/Summer 2012 CollectionCompany: MCMDescription: MCM’s Spring Summer 2012 Collectionrepositions the brand at a new premium level with enhancedquality materials and improved detailing throughout. This colorinspired collection offers a wider choice of styles and designs,creating an offer that caters to all profiles and age ranges

ElisaCompany: Fratelli RossettiDescription: An authenticexpression of the FratelliRossetti identity, Elisacarries the signature ofthe welt, a discretehallmark which is an intentional reference to the shoe world

2012 Olympic mascots and toysCompany: Whitehouse Travel RetailDescription: Whitehouse TravelRetail has picked up theexclusive agreement todistribute Olympics 2012mascots and toys in UKtravel retail. The collection includes a full range of mascots, plush andcollectibles including playing cards,keyring and pen sets

Mentos 3-layer packsCompany: Perfetti van Melle Description: Designed todeliver a longer lasting flavor,a unique chewing experienceand lasting freshness throughthe textured gel, the middlelayer Green tea extracts helppurify the breath. Available inpure fresh mint and fruityfresh red apple, pineappleand mango

CONFECTIONERY

WATCHES

HANDBAGS AND TRAVEL ACCESSORIES

Jacques Farel Kids Gift PacksCompany: Harston GroupDescription: The Champion setis a perfect combination of funand style for boys. The setincludes five interchangeablestraps; available with a trendysilver dial and is water resistantup to 30 meters

Jacques Lemans Porto for Men

Company: Harston GroupDescription: These sportychronographs feature a striking

dial design and exudes qualitywith its solid stainless steel case,special hardened mineral crystexand a high grade caoutchouc-grain leather or rubber strap withJacques Lemans lettering

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never look your age again

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