Booming Panama thrives, resists down trend challenging most of

Transcription

Special
June 2015
ASUTIL
CONFERENCE
Issue
Booming Panama thrives, resists down trend
challenging most of Latin America
South America, with its up
again - down again economic
cycles, is currently suffering
from a significant downturn,
particularly discouraging since
it follows some of the strongest
growth in the region’s history.
Volatile currency issues
in Brazil, Argentina and
even Mexico are challenging
consumer spending. Venezuela’s
already struggling economy has
been devastated by declining
oil prices and Forbes magazine
reports that the most recent
inflation figure – published five
months ago - was 68.5%, the
highest in the world.
Brazil’s booming economy
has slowed to a snail’s pace,
inching up only a token 0.1% in
2014. Industrial production and
retail sales continue to fall and
business confidence is at its lowest
point since record keeping began.
But even as retailers
throughout the region caution
that 2015 will be a tough year
for business, key operators
continue to invest heavily in
the marketplace, preparing for
a return of shoppers. The fact is
that the travel retail industry in
South America has a basically
sound foundation.
IATA reports that airline
traffic in Latin America rose
5.8% in 2014, and capacity was
up by 4.7%. Regional trade
volumes showed improvement
in April and Paraguay is in the
midst of major infrastructure
investment.
Despite the current lack of
Brazilian shoppers, investments
on the Uruguayan border remain
in place. In Rivera, both Neutral
Soho Mall in the center of Panama City, Panama, is the culmination of
five years of planning and construction by Grupo Wisa’s Abdul Waked.
The 80,000 sqm, three-tower multi-use facility includes residential and
office space, the first Ritz Carlton Hotel in Central America, a casino
and—connecting it all—a 34,000 sqm luxury shopping mall now open and
offering the most prestigious brands in the world. Story begins on page 8.
and Grupo Wisa are on track to
open 4,000 sqm stores in the new
Melancia Mall later this year; and
Sineriz still plans to add 5,000
square meters to its 10,000 sqm
store. DFA Uruguay says that
the $40-million shopping mall it
is building in Rio Branco with
developer Garbarino Lombardo
should be open in the next few
months.
The most striking
contradiction to the down cycle
affecting most of the region is
ASUTIL’s host country of Panama
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itself. Situated at the crossroads
of North and South America,
Panama boasts one of the best
economies in Latin America,
with a GDP that the World Bank
says has outpaced all other
Central and South American
nations since 2012. It is the site
of the most important maritime
route in the Americas, and home
to more than 100 banks from 32
different countries and nearly
$100 billion in assets. Panama
City’s gleaming skyline gives
claim to the country’s first-
class infrastructure, including
Central America’s first, and only,
underground metro system.
A centerpiece of Panama’s
booming prosperity is the
stunning, luxurious Soho Mall
going up in the center of the city,
a dream project of Abdul Waked,
the head of Grupo Wisa, one
of the most important duty free
companies in the region.
The pioneer behind the duty
free industry in the Americas,
Motta Internacional, has called
Panama its home for more than
70 years; and relative newcomer
Duty Free Americas, expanding
south from its Northern base,
also has much of its business
headquartered here.
All three companies
graciously allowed TMI to meet
with them – and we share their
stories on these pages.
Suppliers, too, are investing
in the future, and we share their
stories as well. L’Oréal’s groundbreaking Kérastase Travel Retail
Hair Salons and Dermacenters
have opened first in Latin
America with London Supply
and Grupo Wisa, with more key
locations opening soon. And
liquor companies from BrownForman, to Patrón to Beam
Suntory continue to develop their
luxury brands for the channel.
As in the past, the 2015
ASUTIL Conference provides a
forum for the industry to meet
and discuss the challenges and
opportunities before them. We
look forward to seeing you all
here.
Lois Pasternak, Editor/Publisher
June 2015 ASUTIL Special Issue
ASUTIL Special Issue June 2015
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INSIDER
TABLE OF CONTENTS
R et ai l and N ew s F eat ur e s
COVER COMMENTARY
UNWTO: Latin America among fastest
growing markets for tourism receipts
Page 6
FEATURES
PANAMA: the crossroads for international
business & home to 3 duty free empires
Grupo Wisa: The Master of Luxury
Motta Internacional:
A proud legacy and pioneering spirit
Page 8
Page 10
Page 39
FFG launches high-end
Perry Ellis OUD range
Page 40
Hermès fragrances opens in
San Juan’s new luxury mall
Page 42
Estée Lauder signs Eva Mendes
as face of new skincare range
Page 42
Puig creates Prada Candy Kiss
Limited Edition TR mini set
Page 42
Buckley London brings new
innovations to ASUTIL
Page 43
Obaku Denmark targets TR
Page 43
IBBI expands with new staff
and brands
Page 43
New Duty Free Dynamics
launches Guess watches in LATAM DF
Page 44
Page 14
DFA marches South and onward
NEWS
Page 18
Traffic up at Tocumen
Page 24
Mixed results for Copa
Page 24
Economic Overview:
Slowdown in South America
Tairo launches new company for
professional hair care & beauty products Page 26
Special Spirits Features
London supply wins
Free Zone concessions
Page 28
Corporacion America buys Engexix
stake in Inframerica
Page 28
OAS to offload stake in Invepar
Page 28
Pomiés wins Colonia Express
duty free program
Page 30
TAP Portugal sale draws to a close
ASUTIL 2014 Review in Pictures
Page 30
Page 46
Patròn: crafting the ultra-premium
tequila category
Page 49
MONARQ thrives
Page 52
La Fée absinthe brings pre-war Paris to new generations
Beam Suntory’s Taste of Kentucky
Page 52
Godiva focuses on Latin America
Page 56
Hershey takes on Europe
Page 56
Paul & Shark enters the Americas Page 58
Page 54
Page 32
ON THE SUPPLY SIDE
Special Features
L’Oréal breaks new frontiers with
Haircare & Professional Products as
London Supply & Grupo Wisa debut
new Salons
Herradura: bringing quality tequilas
to the market since 1870
Page 34
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INSIDER
UNWTO: Exports from international tourism
rise to US$1.5 trillion in 2014
Latin America among the fastest growth markets; U.S. ranks #1 in tourism earnings
International tourism receipts increased by US$48 billion in 2014 to reach a record US$1,245 billion. An
additional US$221 billion was generated from international passenger transport, bringing total exports
from international tourism up to US$1.5 trillion, according to the April report from the UNWTO.
Receipts from international visitors
spending on accommodation, food and
drink, entertainment, shopping and other
services and goods reached an estimated
US$1,245 billion (euro 937 billion) in
2014, an increase of 3.7% in real terms
(taking into account exchange rate
fluctuations and inflation). International
tourist arrivals increased by 4.4% in 2014,
reaching a total 1,135 million, up from
1,087 million in 2013.
The UN report also noted that in
addition to international tourism receipts
(the travel item of the Balance of Payment),
tourism also generates export earnings
through international passenger transport
services (rendered to non-residents). This
category amounted to an estimated US$221
billion in 2014, bringing total exports from
international tourism up to US$1.5 trillion,
or US$4 billion a day on average.
“International tourism is an
increasingly significant component of
international trade as seen in export
earnings from international tourism and
passenger transport, which reached US$1.5
trillion in 2014,” said UNWTO SecretaryGeneral, Taleb Rifai. “In a scenario with
decreasing commodity prices, spending
on international tourism grew significantly
in 2014, proving the sector’s capacity to
stimulate economic growth, boost exports
and create jobs,” he added.
International tourism (travel and
passenger transport) represents 30% of
the world’s exports of services and 6% of
overall exports of goods and services. As a
worldwide export category, tourism ranks
fourth after fuels, chemicals and food,
ranking first in many developing countries.
International tourism receipts grew in all
regions
Europe, which accounts for 41% of
worldwide international tourism receipts,
saw an increase in tourism earnings in
absolute terms of US$17 billion to US$509
billion (euro 383 billion). Asia and the
Pacific (30% share) saw an increase of
US$16 billion, reaching US$377 billion
(euro 284 bn). In the Americas, (22%
share), receipts increased by US$10 billion
to a total of US$274 billion (euro 206 bn).
In the Middle East, (4% share) tourism
receipts increased by an estimated US$4
billion to US$49 billion (euro 37 bn) and
in Africa (3% share) by US$1 billion to
US$36 billion (euro 27 bn).
By subregion, Northern Europe,
Southern and Mediterranean Europe,
North-East Asia, Oceania, South Asia,
Caribbean, Central America, South
America and the Middle East showed
fastest growth in relative terms, all
recording +5% or over in receipts.
Top earners: China and the United
Kingdom move up in the top ten
In the top ten ranking by tourism
earnings, China climbed from 5th to
3rd place following a 10% increase in
earnings to US$57 billion in 2014. The
United States (US$177 billion) and
Spain (US$65 billion) maintained first
and second positions in the ranking. The
United Kingdom (US$45 billion) moved
up two positions to 7th, boosted by the
lasting effects of the Olympics and the
appreciation of the UK pound (increasing
receipts calculated in US dollar terms).
France, Macao (China) and Italy occupy
the 4th to 6th positions respectively,
while Germany, Thailand and Hong Kong
(China) complete the top ten.
Top spenders: spending by advanced
economies picks up
In terms of outbound tourism, the
world’s top spender China continued its
exceptional pace of growth with a 28%
increase in expenditure in 2014, reaching
a total of US$165 billion. While the two
other major emerging markets among the
first 10, the Russian Federation (-6%, 5th
largest) and Brazil (+2%, 10th largest)
lost strength, various advanced economy
source markets picked up in growth. The
world’s second largest spender, the United
States, posted a 7% increase. The United
Kingdom spent 4% more and moved from
5th to 4th in the ranking. France increased
expenditure by 11%, retaining the 6th
position, and Italy by 6%, climbing from
9th to 8th. Germany (3rd), Canada (7th)
and Australia (9th) take the remaining
places of the top ten.
Please note that the above data is
preliminary and subject to revision.
Editor/Publisher: Lois R. Pasternak
In Memoriam: Paul A. Pasternak
Executive Editor: Michael Pasternak
Deputy Editor: Lara Pasternak
Editorial Contributors: John Gallagher
Production Coordinator & Designer: Chris Hetzer
Design and Production: It’s About Time, Inc.
Webmaster: Michael Pasternak
Printing by The Printer’s Printer. Ft. Lauderdale, Florida
This publication is a special supplement of Travel Markets Insider, published
by Pasternak Communications, Inc., 255 NE 3rd Ave No. 312, Delray Beach,
FL. 33444 USA. www.travelmarketsinsider.net
E-mail: parsnip5@aol.com, editor@travelmarketsinsider.net
Tel (561) 908-2119 Fax (561) 908-2257
Travel Markets Insider is a weekly newsletter distributed 50 times a year
via e-mail, on a subscription basis only.
The annual subscription is US$200. Printed in the USA. All rights reserved.
© 2015 by Pasternak Communications, Inc.
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INSIDER
Panama: the crossroads for international business
and home to three duty free empires
Panama City. Photo courtesy of Skyscrapercity.com
Panama—whether seen as a crossroad,
a hub or a bridge –has developed into a
trade and finance, distribution and logistics
center for the entire Western Hemisphere.
It is also the home base of three of the most
important travel retailers in the Americas.
Offering political stability, a central
location in the Americas and U.S. dollarbased currency, Panama boasts one of the
best economies in Latin America. Panama’s
gross domestic product expanded 6.8% in
2014 and has outpaced all other Central
and South American nations since 2012,
according to the World Bank Group. The
Bank is projecting growth of 7.5% GDP
this year, the highest in the region.
Panama is indisputably the business
capital of the region. Safe, pro-business
and tourist-friendly, it has a banking
sector with more than 100 banks from 32
different countries and nearly $100 billion
in assets. It is also home to more than 100
multinational companies. Travel to Panama
is easy. Panama’s Tocumen International
Airport handled 12 million passengers
in 2014 and offers direct flights to more
than 86 cities in the region. Capacity
will expand further when the new South
Terminal currently under construction is
completed in 2017.
Panama City’s gleaming skyline
gives claim to the country’s first-class
infrastructure, including high-speed
internet and Central America’s first, and
only, underground metro system – with
a second line out to the airport to be
completed next year.
And then of course there is the
Panama Canal, which celebrated its 100th
anniversary in 2014. The canal, one of
the busiest maritime routes in the world,
is literally the gateway between east and
west, connecting the Atlantic and the
Pacific. The Port of Colon on its Atlantic
side is the second busiest free zone in the
world after Hong Kong, handling some $30
billion in annual imports and re-exports.
Since Panama took control of the Canal
from the United States in 1999, it has done
an excellent job of running and expanding
the operations. The country is now in the
final stretch of a major expansion originally
set to cost more than $5.2 billion, and
which will, when completed, allow the
passage of giant Post-Panamax container
shops through the canal for the first time.
This is the setting for Duty Free,
which has a long tradition in Panama.
Panama today is the headquarters of three
of the most important duty free/ travel
retail companies in the Americas.
Motta Internacional SA --one of the
very first companies in the Colon Free
Zone --is credited with starting the duty
free business in the Americas. The now
legendary Don Alberto Motta began selling
duty free liquors and perfumes to tourists
more than 75 years ago as they traveled the
Panama Canal back in 1940 and opened
the first duty free store in the Western
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Hemisphere at Tocumen Airport in 1949.
The company continues strong today under
the leadership of Don Motta’s son Alberto
(Pancho) Motta Jr.
For Grupo Wisa’s Abdul Waked
and his son Hamudi, the business is all
about luxury. Another company that has
been in business for more than 50 years,
Grupo Wisa is one of the leading duty
free operators in Latin America and its La
Riviera perfume stores can be found in
airports and the local market throughout the
region. The Wakeds are now transforming
prestige shopping with the opening of one
of the most luxurious shopping venues in
Latin America with its Soho Mall in the
center of Panama City this summer.
Duty Free Americas, owned by
brothers Simon, Jerome and Leon Falic,
may be the relative newcomer to the
market, starting when the Falics bought
North America’s leading travel retailer at
the end of 2001. But they have steadily
expanded the business and now have
a major and still growing presence
throughout Central and South America, the
Caribbean and beyond.
In the following pages, Travel Markets
Insider presents each of their stories.
Lois Pasternak
Sources. International Investor, The
Panama Planner, PanAmCham (The
American Chamber of Commerce &
Industry of Panama), Wall Street Journal
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INSIDER
Grupo Wisa’s Abdul Waked: The Master of Luxury
The 44-story South Tower and 4-story luxury mall in Grupo Wisa’s three–tower Soho project going up in the center of Panama
City next to the dramatic corkscrew-shaped F & F Tower, are already completed and open for business.
Abdul Waked, the head of leading
Latin American duty free operator Grupo
Wisa, has always loved luxury goods.
Hailed as a visionary, Waked’s original La
Abdul Waked
Riviera stores in the 1990’s transformed the
way fragrances and cosmetics were sold in
much of Central America and introduced
the concept of perfumeries in Panama.
In La Riviera, top-name fragrances
and cosmetics found a fitting showcase,
and the stores became the launch pad for
such important brands as Bobbi Brown,
Creme de La Mer, Victoria’s Secret, Kiehl’s
and many others in the region. Now, Abdul
Waked’s vision has expanded far beyond
perfume.
Today, Grupo Wisa operates more than
300 stores in duty free and local markets
in 14 countries, adding the La Hora watch
stores to the La Riviera portfolio, as well
as boutiques for H. Stern, Jimmy Choo,
Burberry, Bijoux Terner and Samsung. The
company employs more than 5,500 people
throughout the region, with warehousing
and logistics operating out of a massive
facility in the Colon Free Zone.
But Abdul Waked’s passion for luxury
is most apparent in his new masterpiece of
retailing: the $350 million Soho Complex
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in downtown Panama City. Located on a
full city block on Panama’s important Calle
50, the 80,000 sqm, three-tower multiuse facility includes residential and office
accommodation, what will be the first Ritz
Carlton Hotel in Central America, a casino
and—connecting it all—a 34,000 sqm
luxury shopping mall offering the most
prestigious brands in the world, top-notch
entertainment venues and a choice of
regional and international restaurants.
The 44-floor South Tower office
building and the 4-story Soho Mall are
open now. The 226-room hotel and 80
residence suites, casino and 26-story North
Tower are scheduled to open in 2016.
“I have always loved luxury brands.
Always. For my stores today I present
luxury not only in perfume, but in all
categories, liquor brands, accessories
brands, watch brands, fashion brands. I
relate to luxury. This has all come together
in Soho Mall,” Abdul Waked tells TMI in a
meeting in his current offices, overlooking
the construction at Calle 50 a block away.
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“I think that my Soho Mall is the
most prestigious mall in Latin America. I
am not sure if one exists like this even in
the United States. It is unique. We have
boutiques for Valentino, Bottega Venetta,
Christian Dior, Louis Vuitton, Yves Saint
Laurent, Chanel, Prada, Fendi, many more.
Soho Mall has the most luxurious brands
there are,” he says.
Soho Mall will house 100 stores in
“an extraordinary ambiance,” says Grupo
Wisa Vice President of Corporate Affairs
Juan Luis Correa. “The care that went into
planning every detail was exceptional.
Even the building materials were brought
over from Italy and Europe.”
“Soho was my dream—and I made
it a reality, step-by-step,” explains Abdul
Waked. “We have spent five years in
the construction. The project is very
complex—it brings together a mall,
office towers, a hotel, a casino. And most
important, this is multi-use and all in one
unit. Even the parking is ground-breaking,
with five levels located underneath the
building instead of above ground. We had
to go below sea level. This does not exist
in Panama. The parking was a significant
expense by itself.”
Grupo Wisa believes that it will
find an eager customer for its top of
the line luxury offerings at Soho, says
Correa. Panama’s robust economy and
prosperity have filled the city with highly
sophisticated affluent consumers, who
often go to Miami, New York, Paris and
London to shop: “So now they can shop at
Soho,” he says.
Soho is enticing people with many
attractions in addition to shopping. It has
already opened a 7-screen VIP Cinema
The rendering of the three-tower multi-use Soho Mall project, which will
include the first Ritz Carlton Hotel in Central America.
Hamudi Waked: Duty Free at the heart of the Wisa DNA
Hamudi Waked, Executive Vice
President of Grupo Wisa, emphasizes that
the duty free business continues to be at the
heart of the family-owned company.
“Grupo Wisa has grown so greatly
and so fast over the past few years and
now encompasses real estate, newspapers
and insurance,” he says, “but the DNA of
the company continues to be the luxury
business of perfume, cosmetics, accessories
and liquor – what we call the duty free
business. We have a very strong position
with a core business and are now investing
even more than before in this segment,” he
tells TMI.
Hamudi Waked points out that Grupo
Wisa is remodeling many of its old La
Riviera duty free stores at Panama’s
Tocumen International Airport, where the
company is the largest duty free operator.
“We have some new stores opening
too. We just won a bid to open a Columbia
sportswear store in Tocumen; and we
just remodeled our flagship store for
our La Hora high-end watches. We are
also investing heavily in Colombia at El
Dorado Airport, installing beautiful new
counters in our La Riviera store there. We
are expanding in Mexico City Airport also
with a big store that is launching exciting
new concepts and new brands, as well
as remodeling some of our key branded
Hamudi Waked
boutiques,” Hamudi Waked tells TMI.
“To serve the Uruguay and Brazil
market, we are opening new stores,
including a very strong 4,000 sqm La
Riviera concept in the Melancia Mall in
Rivera, Uruguay, which should be ready in
the next two to three months.”
Duty free remains a very important
category for Grupo Wisa, and continues to
increase, says Hamudi Waked.
“When the new South Terminal opens
in Tocumen in 2017, and passenger traffic
increases to more than 14 million, we
expect the business to grow significantly.”
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The company is organized with one
team for duty free, and another team
to handle local market operations. One
way Grupo Wisa has been improving its
business is by adding more qualified staff,
says Hamudi Waked.
“Bringing added value is very
important to our duty free strategy. In
Panama, Mexico, Colombia and Central
America, and now in Uruguay, especially
when the new mall opens, we are always
looking to bring something new to the
consumer. La Riviera is always thinking
about our passengers and consumers. We
want them to have the best products and
quality and service possible.”
The company vision reflects this
philosophy: “Maintain a leading position
in the distribution of luxury goods in the
region of Latin America.”
Next year, after the Panama Soho
project is completed, Grupo Wisa will be
building a brand new, totally computerized
warehouse in the Colon Free Zone. The
new warehouse will replace the company’s
present 45,000 sqm facility, which
currently handles approximately 30 million
items a year into and out of the facility,
covering some 1.2 million SKUs. The new
warehouse will offer top-line technology
and more efficient design, comments Rey
Flores, Grupo Wisa’s Logistics Manager.
INSIDER
featuring all leather, electrically controlled
seats; a Spa and Sports gym and the largest
casino in Central America are still to come.
The full range of restaurants include Paris’
famous Ladurée in an open-air location
on the ground floor of the mall, in a site
that looks as charming as the sweet shop’s
iconic macaroons.
Rolex is debuting its new concept
store in the Americas in Soho Mall, only
the second in the world after Dubai. Grupo
Wisa itself is unveiling its new La Riviera
concept in Soho as well.
But the mall is really all about the
brands, many of which will be available for
the first time in Panama in Soho. “We spent
five years bringing in the most prestigious
luxury brands. [My son] Hamudi was very
instrumental in this phase and was very
successful,” says Abdul Waked.
The Soho project is described as the
largest private commercial investment in
Panama in years, second after the Canal
expansion. Central American magazine
El Economista named Abdul Waked as
Panama’s Businessman of the Year in
February, in recognition of Soho Mall
and Grupo Wisa’s success in retailing
throughout the region.
As for Mr. Waked, his passion for
luxury persists. He would like to expand
the Soho concept to other countries in
South America –beginning with Bogota,
Colombia and Lima, Peru, and is already
searching for property for the next projects.
Lois Pasternak
Clockwise from top left: Soho Mall will debut the new concept La Riviera flagship perfume
store. When completed the Soho Mall will house 100 stores in “an extraordinary ambience”,
with boutiques for such luxury brands as Valentino, Bottega Venetta, Christian Dior, Louis
Vuitton, Yves Saint Laurent, Chanel, Prada, Fendi, many more.
13
INSIDER
Motta Internacional: A proud legacy and pioneering spirit
One of Motta
Internacional’s
Attenza stores in
Panama’s Tocumen
International
Airport.
As the pioneer duty free company in
the Americas, Motta Internacional holds
a special position in the development of
the industry. From its humble beginnings
back in 1949 when the original Motta &
Motta opened the first duty free store in
the hemisphere in Panama, today Motta
Internacional and its affiliated companies
encompass over 2,000 employees in 16
countries with related businesses and
investments in insurance, real estate,
banking and Copa Airlines.
Motta also runs a number of
distribution companies in Central and
South America, delivering product to its
own and non-owned stores. Its Carisam
division in Miami distributes to cruise
ships. It operates a number of branded
boutiques in the domestic markets as well,
for brands such as Cartier, Ferragamo,
Tiempo (watches), Tory Burch, and Coach,
and has a significant electronics business.
Under the Attenza Duty Free brand,
Motta operates duty free stores and branded
boutiques in Cali and El Dorado airports
in Colombia, at San Salvador airport in El
Salvador, at Managua Augusto C. Sandino
International Airport in Nicaragua, Caracas
Simon Bolivar International Airport in
Venezuela, Tocumen in Panama, Quito
Airport in Ecuador and cruise port stores in
Puerto Progreso in Mexico’s Yucatan.
There are several new stores underway
as well, says Motta Internacional CEO
Erasmo Orillac.
Motta has just opened a new 67 sqm
liquor store in the Tocumen Airport North
Terminal, and won a bid for a new 124
sqm traditional duty free store in Tocumen,
which is now under construction.
“We also won a bid in April in a
joint venture with Adidas to open a 65
sqm sporting goods store that will carry
sportswear and athletic shoes. These are
our three main ventures in Panama Airport
right now,” says Orillac.
Other recent projects include the
opening of the Attenza Duty Free stores in
Quito airport in February 2013. Now that
the stores have been open for a while, the
company is fine-tuning its business there,
says Orillac.
“In Quito we opened a traditional
departures and arrivals store covering
close to 1,000 square meters. We are
the exclusive operator in Quito, under a
12-year contract. We are now analyzing
results and making adjustments to the
assortment and layout as needed. The
Arrivals store has already gone through a
substantial remodeling; we added a M.A.C
store, which opened in February, and we
renovated the liquor department, tweaking
the spaces. The goal, of course, is to get the
most revenues from every meter.”
Perfumes and cosmetics are the
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number one category in the Attenza stores;
followed closely by liquor. Number three
is confectionery, which Orillac says is
growing substantially.
“Every year we are surprised by the
increase in the confectionery sales - it
surpasses our expectations every year.
Confectionery is very giftable, it has
universal appeal and an attractive price
point.”
The category has become so important
that Motta is reconfiguring the Quito store
to feature more personalized spaces for
confectionery.
“In Quito we are taking two back
walls of perfume and one from liquor for
confectionery, because confectionery is
giving me the revenue per square meter
that I need,” says Orillac.
Motta takes great effort to make sure it
is serving all its customers, he explains.
“To the public, Motta, with the name
Attenza, means extraordinary attention. In
our stores we want you to feel welcome,
to find what you want at a fair price, and
we want our customers to be happy and to
come back. To the suppliers, Motta means
we will carry out your marketing policies,
implement your policies and provide
good execution. We do the job right. To
my employees, we want to be a very fair
and good employer. My stores are a place
where you aspire to work: we provide a
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challenging job, growth opportunities, we
are good for the community, we provide a
place to better yourself.
“When we put all these together,
the goal is that we want to have what our
customers want to buy – per nationality,”
he says.
According to the company records,
Brazilian tourists make up a significant
percentage of Motta’s duty free airport
sales, and Orillac says serving these
customers is a priority.
“About 18% of the sales in the Motta
stores in Panama come from Brazilians, 11%
from Colombians, 9% from Ecuadorians,
7% from travelers from the USA, 7% from
Venezuelans, 5% from Panamanians, 5%
from Chileans, and so forth.
“So with Brazilians accounting for
such an important part of the sales mix,
my challenge is to find which products
the Brazilians are looking for. I have a list
of 10 items that the Brazilian are buying
– they buy this whisky, they buy this
perfume, they buy this candy. If I am out
of that product in any of my terminals, we
lose the sale and the potential for additional
sales. So watching that these products are
always well-stocked and available is a
priority for everyone in the stores.
“As a result, we are growing our sales
faster than the traffic is growing, because
we are being very efficient, we have gone
back to basics,” he says.
Alberto “Pancho” Motta, Jr., Director
of Motta Internacional, and son of founder
Alberto Motta Sr., sees the company’s
success over the past six –plus decades
as the result of the way the company
approaches the business:
“My first concern is always our
employees. If they do well, our business
will run well. Then obviously, comes our
clients,” says Motta.
“I hope that when people think of
Motta Internacional they see it as a wellrun company, that it is run honestly, and
that it is run so that all three parties can
make money: the supplier, us and our
clients. If one of the three doesn’t make
money, the chain stops.”
Motta, speaking both as head of his
company and as the president of industry
trade group the International Association
of Airport Duty Free Stores (IAADFS)
sees the biggest challenge facing the duty
free industry in the Americas – particularly
in the U.S. -- as the structure of airport
concession bidding, with airport authorities
demanding a flat percentage of sales, no
matter the product category.
“I worry that airports don’t understand
the marketplace they have. They want a
percentage of sales. This is fine, we can
work with that. But you can’t have the
same percentage on everything. Liquor
and perfume and cigarettes can afford to
pay the higher percentage, but if I want
to sell you a camera, I can’t pay 20-30%
to the airport. Customers will find lower
prices downtown. You can’t have the same
percentage on jewelry that you have on
batteries.
“We would like to see the airports
change their bidding system so that we can
offer more products for sale in the airport.
Even if a bid calls for one concessionaire,
that concessionaire can still bring in more
products. But the authorities have to be
fairer with the prices that they require from
their concessionaires members, and not
just look at the flat percentage,” concludes
Motta.
Lois Pasternak
Top: Attenza offers an extensive selection
of top name liquors in the departure store
at Ecuador’s New Quito International
Airport. Bottom: The beautiful display
of fragrances at the Attenza departures
store in Bogota’s El Dorado International
Airport in Colombia.
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2015
International Association
of Airport Duty Free Stores
DutyFree
Show
of the
AMERICAS
MARCH 22–25, 2015
Orlando World Center Marriott
Orlando, Florida, USA
Thank You
The IAADFS wishes to thank the many exhibitors,
sponsors, and attendees who participated in the
2015 Duty Free Show of the Americas, March 22-25
in Orlando, Florida. We have received extremely
positive feedback about the amount of business
conducted at the show, as well as a high level of
praise about the quality of the buyer attendees and
exhibits and enjoyment of the various social events.
www.IAADFS.org/DutyFreeShow |
We look forward to seeing
you at the 2016 Duty Free
Show of the Americas!
April 3-6, 2016
Orlando World Center Marriott
Follow us on Twitter @IAADFS
The Duty Free Show of the Americas is hosted by the International Association of
Airport Duty Free Stores, representing the duty free industry for more than 45 years.
17
INSIDER
Duty Free Americas marches South and onward
Duty Free America’s beautiful Departures store in Terminal B at Punta Cana International Airport in the Dominican Republic.
Who would have imagined how
prophetic the name Duty Free Americas
would be when the Falic Group bought the
company from BAA back in 2001? At that
time it was the largest duty free operator in
North America, with stores in airports and
along the northern U.S. border with Canada
and the Southern border with Mexico.
Today, DFA’s business has burst through
those borders, expanding throughout parts
of the Caribbean, Central America, and
as far south as Brazil and Uruguay in the
Mercosur, not to mention as distant as
Macau in China and Israel.
When Falic brothers Simon, Jerome
and Leon bought the company then known
as World Duty Free Americas (the former
Duty Free International) for a reported
$121 million just a few weeks after 9/11,
they were taking a huge gamble on the
future of the industry. But with annual
sales now north of $1.2 billion, the group
is a leader in the travel retail industry with
more than 150 duty free stores in major
international airports, borders and ports in
the United States, Latin America and Asia.
The company also encompasses
a News and Gift store division, and an
extensive distribution business, covering
both duty free and domestic distribution of
spirits, wines, fragrances and accessories,
with operations in Mexico, Puerto Rico,
Colombia, Honduras, Aruba, Belize and
Panama.
Additionally, the company has
expanded into the business of creating
perfumes and spirits and wine. Its Falic
Fashion Group division creates and
distributes fragrances under license for
Perry Ellis, the Original Penguin, and Eva
Longoria, among others. It has also been
producing the Animale fragrances since
2003. Through its Innovative Liquors
division, the company produces a range
of brands including Bear Hug Infusions,
Stars & Stripes Vodka, Caribana Sol rum,
Shannon Irish Cream, and more.
The Falic family also acquired the
Hard Candy and Urban Decay beauty
DFA is now operating five stores in Punta Cana
with more underway. Shown here is the new
Arrivals store in Terminal B and the stunning
Luve Champagne Bar.
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brands in 2002, [Urban Decay has since
been sold and is now part of L’Oréal] and
acquired the Christian Lacroix fashion
house from LVMH in 2005. On top of that,
they have invested in a vineyard in Israel,
and gas stations along the U.S. border with
Canada, among other projects.
But the core of the business remains
its duty free shops. At this writing, the
company operates more than 150 duty
free stores throughout the Americas, plus
a luxury duty free store in Macau and an
airport store in Ovda in Israel.
Its newest initiatives range from
Washington’s Dulles Airport in the U.S.,
to new airport stores in Haiti and the
Dominican Republic in the Caribbean,
to major border and free zone projects
in Uruguay and Iquique, Chile in South
America.
“We plan to be around for a long time,
and to continue growing, even in Brazil,”
DFA President Leon Falic told TMI from
his office in Panama in the striking Global
Bank building. All of DFA’s Latin America
and Caribbean businesses report into the
Panama headquarters.
“In the Caribbean, we are investing
in Haiti right now. We just opened a brand
new big arrivals store in Haiti and now we
are completing a big departures store. We
are very pleased with the business in Haiti.
We basically rebuilt the whole area of the
airport,” he reports.
The company also continues to invest
heavily on the other side of the island, in
the Dominican Republic’s Punta Cana
Airport.
“In Punta Cana we now operate five
stores. We just completed a second new
store and are rebuilding the original store
as well as building another completely
new store. We just opened a really nice
Luve Champagne bar, as well as a Coach
boutique and watch store. Next we are
opening shops for Montblanc and Tumi.”
Falic notes that Punta Cana has been
a very popular destination for Russian
tourists, who are important duty free
shoppers. The recent drop in the number
of Russian tourists is being felt in lower
sales, although he feels that the Russians
will begin traveling again as soon as their
currency stabilizes.
“Meanwhile, we are seeing growing
numbers of American and Canadian
tourists,” he says.
The company is especially focusing on
the borders in Uruguay.
“We have a big presence in Uruguay,
and are probably the largest border operator
in Uruguay today; we have a very big
footprint there. We now operate in six of
the major borders with Brazil, in Rivera,
Chuy, Acegua, Bella Union, Rio Branco
and Artigas. Our stores in Uruguay are
completely different than our other stores
because they are more like department
stores than the more traditional duty free
stores.
“And we continue to invest. We just
completed a major renovation in Rivera.
In Rio Branco in Uruguay, we are building
a major $40-million shopping mall with
developer Garbarino Lombardo. In addition
to being one of the developers, DFA
Uruguay will occupy the 4,000 sqm anchor
store, which we expect to be opening in the
middle of this year.”
Chile is another growing market for
DFA’s Latin American business.
“We now have three stores open in
the Zofri Mall in the Iquique Free Zone in
Chile, with plans to open a fourth. And we
are waiting for the go ahead from Brazil
Customs to open our first store in Brazil
at Afonso Pena International Airport in
Curitiba, where we won a 10-year contract
last year.”
The company has a big presence in
Colombia, with four stores at Bogota’s El
Dorado International airport, four stores in
the San Andrés Isla International Airport
and one store in Medellin airport.
“We are also still operating in
Venezuela, with a store in Maracaibo
airport, as well as in Ureña, on the border
with Colombia, and in Santa Elena de
Uairen, on the border with Brazil. We have
a store on the border of Panama and Costa
Rica at Paso Canoas as well.”
Looking ahead, Falic says that even
though 2014 ended up with sales ahead of
the year before, he expects the current year
will be tougher, especially with important
currencies in Europe and Brazil under
pressure, as well as the Mexican peso.
“Currency is a challenge in Latin
America in places like Uruguay now, but
we are still investing in the business; we
are still growing. Venezuela is also tough,
DFA Uruguay is now operating stores in six border
towns, like these in (top) Rivera and (bottom) Bella
Union.
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but people are still buying and we are still
doing business there.”
Falic credits the family-owned and
operated company’s strong management
for its ability to weather the challenges of
the market:
“Duty Free Americas offers good
assortments, depth of product, great
managers and the best buyers,” he says.
“We have people that are on top of the
business, always making sure we have
product on the shelves, making sure that we
are offering newness. I think we are very
good at this.
“The family aspect comes in also,
especially with the new generation of
the family joining the business. As we
always say, we are here for the long term,”
concludes Falic.
Lois Pasternak
The DFA Chocolate Shops in Bogota’s El Dorado International Airport, one of four
duty free stores it operates in the airport.
DFA debuts designer boutiques at Washington Dulles Airport
In the United States, DFA has
just completed opening seven new
branded boutiques at Washington Dulles
International Airport, Jerome Falic,
DFA CEO tells TMI. The new boutiques
include Michael Kors, Kiehl’s, L’Occitane,
Burberry, Thomas Pink, Coach and
Montblanc.
“We are finding that these branded
boutiques are attracting shoppers,”
DFA recently opened this Michael Kors Boutique in Washington Dulles International Airport.
22
confirms Jerome Falic, who has opened
similar boutiques in Miami International,
New York’s JF Kennedy International, and
Hartsfield-Jackson Atlanta International
Airport, among others. “The airport
authorities in the U.S. were looking for
ways to make their stores more appealing
to travelers and are turning to boutiques,
more like in Asia. In many cases, the
same customer who shops in the duty free
store is shopping in the boutiques, but it
is a different type of purchase, say in a
Coach or Burberry store, than it is in the
traditional shop,” he notes.
As we go to press, the International
Council of Shopping Centers (ICSC)
announced that MarketPlace Development,
the concessions development and
management company for the Metropolitan
Washington Airports Authority (MWAA)
which operates Washington Dulles
International Airport (IAD) and Ronald
Reagan Washington National Airport
(DCA), was awarded the Gold MAXI in
the “NOI Enhancement” category. The NOI
Enhancement category recognizes notable
properties that significantly enhanced
net operating income for their centers.
MarketPlace Development has redeveloped
90% of the food and retail offerings at the
Washington airports within the past 36
months. Several of the DFA boutiques were
cited in the Award announcement.
be very. like perry.
PERRY ELLIS
23
CITRON
INSIDER
Traffic up at Panama City by nearly 10%
Panama City’s Tocumen International
Airport posted strong international
passenger results for 2014, with traffic up
by 9.7% to 8.5 million. Transit passengers
accounted for 4.3 million, an increase
of 12.2%, underlining the success of the
airports strategic positioning as the Hub
of the Americas. The airport has reported
strong passenger growth for the past 12
years.
Tocumen is in the midst of a major
$780 million expansion project with
construction of a new South Terminal.
Tocumen General Manager Joseph
Fidanque III reports that the terminal
is more than 40% completed. The new
terminal will add 20 boarding gates
including facilities to accommodate the
Airbus AA380.
Funding problems discovered by a
new management team earlier this year
have been resolved and construction is
expected to be completed in mid-2016.
The new South Terminal will cover
about 50,000 square meters of construction
and will include new areas for immigration
and customs, parking lots, commercial
areas and will process up to 15 million
passengers a year.
Copa dominates traffic
The country’s flagship airline Copa
controls more than 80% of capacity in
and out of the airport, which is likely to
continue at least for the medium term. The
United States and Colombia are the two
biggest markets served from Panama City;
followed by Brazil, Mexico and Costa
Rica.
To date this year, the airport has added
expanded flights from Aero Mexico to
Mexico City. Lufthansa will be adding a
new flight to Frankfurt in the fourth quarter
of the year. Copa will also launch a new
route to New Orleans later this year, and
add new flights to North America once the
South Terminal is completed.
JG
Mixed first quarter results for Copa Airlines
Panama City-based airline Copa
posted mixed financial results for Q1
2015 as the airline adjusted to the new
economic situation in Brazil and continuing
conditions in Venezuela.
After last year’s repatriation problem
of funds from Venezuela and hedging of
aviation fuel costs, first quarter results were
broadly in line with market expectations.
Revenues fell 11.5% to $631.8 million,
slightly below analyst’s estimates. The top
line was hurt by lower passenger revenue
yields. Operating margin in first quarter
2015 was 20.1% versus 24.8% in the same
quarter one year ago. Net income stood at
$113.1 million or $2.57 per share against
$151.4 million or $3.41 per share in the
same quarter last year. However, adjusted
earnings of $2.41 per share were just ahead
of brokers estimates of $2.40.
Copa CEO Pedro Heilbron said,
“We’re facing some additional demand
weakness for air travel in the region
since our last earnings call, mainly as the
result of weaker economies and currency
devaluations, especially in South America.
Revenues for the quarter came in almost
12% lower year-over-year, driven mainly
by a 16% drop in yields. Our consolidated
24
load factor was down 1.8 percentage
points, mainly driven by lower demand in
Brazil. That said, yields in South America
were down approximately 28% year-overyear, driven mainly by the translation to
all-dollar sales in Venezuela.”
The company’s fleet expansion plans
for 2015 remain in place with eight new
B737s due to arrive throughout the year
replacing older models. The new aircraft
ensure that the average age of Copa’s
fleet remains one of the youngest in the
Americas.
JG
25
INSIDER
Slowdown in South America challenges travel retail
The economies of Brazil and Argentina continue to be challenged and the resulting slowdown is
impacting the travel retail business in a variety of ways. Buenos Aires based John Gallagher
assesses the market.
The economic slowdown in Brazil
has affected all travel retail operators in
Latin America. Even travel retail power
house Dufry noted the impact on the
Brazil region at its presentation of the
2015 Q1 results.
The crunch has caused the middle
class to travel less than in recent years,
impacting both operators at the Brazilian
airports and at the border in Uruguay and
Paraguay. Some retailers, such as London
Supply in Puerto Iguazu and InterBaires
at Ezeiza and Aeroparque airports in
Buenos Aires, have been more fortunate.
In these cases, the decline in Brazilian
spending has been replaced by a miniboom from Argentines using their pesos
at the official exchange rate before the
forthcoming presidential elections.
Brazilian travelers--traditionally big
spenders in travel retail – are being much
more cautious when shopping, as they
strive to keep their credit card balances
under control.
The speed with which the
system has fallen apart has surprised
observers. Economic growth has slowed
dramatically since 2010, inching up
only a token 0.1% in 2014. Industrial
production and retail sales continue to
fall and business confidence is at its
lowest point since record keeping began.
Inflation and exchange rates are
also taking a toll. Annual inflation last
month was 8.2%, the highest level since
December 2003 and far ahead of the
4.5% target the government is aiming
for. Analysts predict inflation could fall
to 7.8% by the end of the year and are
forecasting 5.6% in 2016.
The Brazilian Real exchange rate
has varied erratically with the US Dollar
over the last year. Twelve months ago
the Real was floating in a fairly narrow
band between 2.20 and 2.25 to the US
Dollar. By December, the band had
shifted to 2.60 – 2.70. Towards the end of
this March, the Real touched 3.30 to the
dollar, but has since fallen as low as 2.92
and hovers around 3. It is showing more
stability over the past few weeks, trading
between 3.00 and 3.10.
Volatile exchange rates reduce
consumer confidence, with travelers
limiting purchases to necessities. Border
travelers, in particular, stop shopping
when the value of their currency changes
from day to day. Once the currency
stabilizes, even if the relative values are
high, consumer confidence returns and
purchasing patterns are expected to return
to previous levels.
In its investors report published last
month, Dufry underlines the situation.
“These fluctuations, evidenced in
particular in the month of March, were
the devaluation of the Brazilian Real
reaching a new peak level, thus putting
additional pressure on our Brazilian
operations.”
In spite of the volatile exchange
rates, investment plans on the Uruguayan
border remain in place. In Rivera, both
Neutral and Grupo Wisa are on track
to open 4,000 sqm stores in the new
Melancia Mall in September/ October
this year; and Sineriz still plans to add
5,000 square meters to its 10,000 sqm
store. Even though current sales are
struggling, each of these retailers is
convinced the business will rebound once
the Brazilian economy recovers.
Challenges in Argentina
The Argentine economy continues
to struggle, although notoriously
unreliable government statistics cloud
the picture. Both the IMF and the
Economist magazine have consistently
questioned the veracity of the inflation
and GDP figures from INDEC, the
government statistics office. Whereas
the government reports that inflation
has fallen to between 15 and 20%,
26
independent consultants say inflation is
still above 30%. Monthly tax revenues
are increasing by around 30% and given
the stagnant economy, are one indication
of year on year inflation.
Dollars and other foreign
currencies are still in short supply as
the government maintains control of the
market. Individuals must apply to the tax
authorities in order to exchange currency
and the authorized limit changes by the
month. Companies that import goods find
it difficult to obtain foreign currency to
pay suppliers; and some manufacturers
are slowing production as a result.
Argentina seems to have had more
success controlling the black market
dollar. The official rate is slowly moving
to 9 pesos to the dollar and the “blue
dollar” has stabilized at around 12.60 /
12.70 for several weeks. Critics charge
that the government is using an excessive
amount of foreign reserves to keep the
grey market dollar down and maintain
a 40% gap between the official and the
grey market rate. Others say the value of
the dollar is closer to 14 pesos, and argue
that foreign exchange reserves cover the
amount of pesos in circulation.
With Argentine elections coming in
October, it remains to be seen whether
the winning party will lift the foreign
exchange restrictions. Most opposition
candidates say they are in favor of
lifting the restrictions, but economic
advisers are urging caution. But foreign
investment is important for Argentina’s
medium and long term growth and
the current cap on the repatriation of
dividends is hindering such investment.
No matter what happens, Argentine
travelers will continue to spend at home
and when traveling and this is good news
for the duty free business in Argentina
and the rest of Mercosur.
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London Supply wins new concession in Rio Gallegos
and Caleta Olivia Free Zones in Argentina
Argentine duty free operator London
Supply has been granted a 30-year
concession to construct, develop and
administer the new Free Zones in Rio
Gallegos and Caleta Olivia, in the Province
of Santa Cruz, Argentina.
“With this project, we confirm our
commitment to work looking into the
future. We are a Group with more than 70
years of experience in the industry and
we continue to create new employment
opportunities.
“This 30 year concession brings
the challenge to create a unique business
model, through the construction,
development and administration of the Free
Zones,” said Teddy Taratuty, president of
London Supply Group.
“For the Travel Retail industry, this
project is relevant for the Rio Gallegos Free
Zone, which will include both commercial
and industrial areas. This will allow us to
trade all the traditional categories, as well
as automobiles,” he continued.
London Supply expects the project to
be up and running within 15 months.
“We take this opportunity to thank all
those who were involved and collaborated
in this project,” said Taratuty.
The announcement was made in midMarch by Argentina’s Minister of Economy
and Public Finances.
Brazilian construction company OAS to offload stake in Invepar
Bankrupt Brazilian construction
company OAS is likely to sell its stake in
airport manager Invepar once its creditors
approve the company’s restructuring plans.
OAS, another airport-involved
enterprise that has been caught up in the
Petrobras scandal, controls a 24% stake in
Invepar, a shareholder in GRU, the company
that controls the management concession at
Sao Paolo International Airport.
Along with other construction
companies, OAS has been caught up in
the Petrobras scandal and has been banned
from bidding on new projects while a
judicial investigation investigates whether
its executives received bribes in exchange
for work contracts.
OAS filed for bankruptcy protection
in April.
Meanwhile, Brookfield Asset
Management, Canada’s largest
alternative-asset manager, is loaning OAS
R$800million, using OAS’s 24% share in
Invepar as security. The loan will only go
ahead if the judge in the bankruptcy case
gives his approval.
Brookfield would seem to be the front
runner to pick up the assets but the sale is
unlikely to happen for at least 6 months.
JG
Corporacion America buys Engexix stake in Inframerica
Buenos Aires-based Corporacion
America has purchased the shareholding
of construction and engineering company
Grupo Engevix, its Brazilian partner in the
Inframerica joint venture. The Consorcio
Inframerica joint venture controls 51% of
Brasilia International Airport and 100% of
the Sao Goncalo do Amarante International
Airport in Natal in North East Brazil.
The giant Brazilian construction
company has been caught up in the
Petrobras corruption scandal which
has dominated the Brazilian economic
scene over the last months. With the
Brazilian judiciary intervening accounts
of companies involved in the scandal,
Engevix has been forced to sell assets to
stay in business.
Neither company released the
purchase price of the deal. The amount
that Corporacion America paid for the
shareholdings will remain confidential at
28
least until the deal is finalized when and
if it is approved by ANAC, the Brazilian
Civil Aviation Authority and CADE, the
Administrative Council for Economic
Defense.
The Argentine economic press reports
that Eduardo Eurnekian, the leading
shareholder in Corporacion America, has
been looking for a new Brazilian partner
since the beginning of the year.
JG
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Pomiés to manage Colonia Express duty free program
Buenos Aires-based ferry company
Colonia Express has named D.POMIES
& Asociados to manage the company’s
growing duty free program.
The Montevideo-based D.POMIES
& Asociados is led by former Neutral
and DFA director, Daniel Pomiés and
duty free executive Graciela Santi. It will
manage and operate the duty free shops
onboard the Colonia Express fleet, which
connects Buenos Aires, Argentina and
Colonia del Sacramento in Uruguay with
a fleet of modern, high-speed catamarans.
Passengers are transferred to Montevideo,
Punta del Este and other parts of Uruguay
by motor coach.
Colonia Express was founded in
2007 and operates from its own terminal
in Puerto Madero. The terminal recently
received an AR$13million renovation. The
firm currently operates two ferries that hold
350 and 180 passengers respectively; a
third, larger ferry will enter service shortly.
“The Company has brought the
renamed and reflagged 650-passenger
Atlantic Express car ferry from Greece
and refitted it to meet the needs and
expectations of the passenger on the River
Plate,” Pomiés told TMI. Working with
local architect Victor Alcuri, the company
has also refitted and redesigned the 160sqm duty free shop: “We will be offering
the best brands in the leading categories, so
that passengers on the one hour journey can
enjoy a pleasant shopping experience. The
target date for operation is July 1 and we
fully expect to meet that projection,” said
Pomiés.
Pomiés reports that Colonia Express
is also expecting delivery of a totally new
ship in the first quarter of next year.
“The ‘Argentina Express’ will be a
350-passenger mono hull boat and the
first fast ferry to be built in an Argentine
shipyard. We expect to put the new vessel
into operation by the end of year. We have
incorporated a newly designed 60sqm duty
free store and if all goes to plan we will be
able to offer the very best service for our
travelers.”
“The secret on short routes like this
one (just under 60 minutes) is to create the
right ambience and the right layout where
shoppers can see what they need quickly
and pay for their purchases in an efficient
and timely manner. If you get that right, the
spend-per-passenger and the total revenues
should reflect the planning you have done,”
comments Pomies.
Pomiés began speaking with suppliers
at the IAADFS show in Orlando this year.
“Purchasing plans are in hand and we have
already started talking to suppliers – some
brands will be bought direct and others will
be sourced from local duty free distributors.
We will continue to talk to suppliers this
year as the ASUTIL conference in Panama
and at the TFWA Exhibition in Cannes in
October.”
The Colonia Express ships carried
nearly 331,000 passengers in 2014.
Shipping executives confirmed that the
investment from the owners of Colonia
Express in the new vessel will be in excess
of AR$30million.
JG
TAP Portugal sale may be nearing completion
The planned sale of 66% of struggling
state-owned Portuguese flag carrier TAP –
Air Portugal may be nearing completion.
The government announced on May 20 that
it has accepted two bids for the next phase
of the sale. This is the government’s second
attempt to privatize the heavily indebted
airline since 2012.
The government said it will
negotiate with Brazilian businessmen
David Neeleman, CEO of Brazilian low
cost carrier AZUL and the founder of
Jetblue; and with Brazilian – Colombian
businessman German Efromovich,
President of Avianca. The bid from
Portuguese entrepreneur Miguel Pais do
Amaral was discarded because it was
not considered binding, said Transport
Secretary Sergio Monteiro.
If successful in their bid, both
Neeleman and Efromovich could benefit
from possible synergies of adding TAP’s
Brazilian network to their own Brazilian
operations.
Efromovich previously tried to
purchase the airline in 2012 but was not
able to provide the financial guarantees
required by the Lisbon government.
European Union state-aid rules
prevent the Portuguese government from
30
making fresh capital injections into TAP.
If sold, 5% of the capital will be reserved
for airline workers and the government is
hoping to place 61% with a stable investor
whose first task would be to recapitalize the
airline, which has debts in excess of one
billion euros. The government will retain a
34% stake in the airline but may exercise
an option to sell that stake two years after
the privatization.
Published reports indicate the
government is aiming for a deal to be
concluded by the end of June.
JG
INSIDER
31
171
June
2015
ASUTIL
Special Issue
March
2015
IAADFS/MHA
Issue
Retailers, suppliers, and industry stake holders gathered
in Mexico City last year for the 2014 ASUTIL Conference
“Strengthening the Future.” Photos courtesy of Dufry.
ASUTIL 2014
32
33
INSIDER
L’Oréal breaks new frontiers with
Haircare & Professional Products
London Supply opens first Kérastase Travel Retail Salon in Americas, with Dermacenter to follow
as travel retail and domestic markets join forces to recruit new customers. Lois Pasternak reports.
The first Kérastase Travel Retail Hair Salon in the Americas opened at London Supply’s Iguazu store in Argentina in March.
L’Oréal’s Active Cosmetics Division
is all about differentiation and bringing
a unique offer to the consumer, says
Jose Luis Lacunza, Division Manager of
Active Cosmetics & Professional Products
at L’Oréal’s Travel Retail subsidiary in
Miami. These two new divisions are also in
the midst of a breakthrough effort to attract
new customers and convert them into
regular users of the brands.
L’Oréal’s Active Cosmetics &
Professional Products division burst onto
the travel retail scene in the region with
the opening of L’Oréal’s first Kérastase
door in Americas travel retail with London
Supply in its Puerto Iguazu store on March
23. A second location has now opened with
Grupo Wisa at the end of May in Mexico
City International Airport, Terminal 2.
L’Oréal Travel Retail first announced
that it would be launching its Kérastase
brand – the world’s number one
professional hair care brand-- along with
treatment brands Vichy and La RochePosay, in some of the most prestigious
global travel retail locations, during the
2014 Tax Free World Exhibition in Cannes.
L’Oréal is selling the new concepts
in travel retail through Dermacenter
flagship “shop-in-shops” devoted to
dermocosmetics for Vichy and La RochePosay, and through tailor-made dedicated
Kérastase Studios for hair care; and the
Kérastase Studio opened with London
Supply in March represents a groundbreaking new category in the channel.
(L’Oréal’s first two doors – one Kérastase
Hair Studio and one Dermacenter—opened
in Hong Kong with DFS Group last
November.)
The luxurious 17 sqm Kérastase
counter in Puerto Iguazu occupies a
stunning 360° open space area at the
entrance of the store’s immense Beauty
section, and introduces new standards of
service in the travel retail venue.
The salon features a styling station
staffed by professional hairdressers.
These are dedicated hair advisors trained
to perform an individual diagnosis of the
34
customer’s hair and scalp, collect and
analyze data and then provide precise
product suggestions and follow-up.
The Hair Centers offer a streamlined
selection of key hair products, including
travel exclusive sets, as well as specific
services designed to be performed within
the time restraints of a travel retail/ airport
environment. Clear shelf signage helps
customers identify the Kérastase routine
steps and rituals, with merchandising and
visuals translated into both Spanish and
Portuguese.
The diagnosis uses a specially
designed precision hair & scalp analyzer –
like a camera app -- that delivers between
200 to 600 magnification and measures
nine different parameters in the hair shaft
and scalp. This permits the hair technician
to provide a professional analysis and make
informed recommendations to improve the
hair.
“The London Supply Kérastase Studio
is the first time we saw everything that
we were working on come together,” says
LA ROCHE-POSAY
LABORATOIRE DERMATOLOGIQUE
A BETTER LIFE FOR SENSITIVE SKIN.
lipikar BAUME AP+
Dryness, itching.
Flare-ups are spaced out.
Calm is durably restored.
NEW
35
INSIDER
Lacunza. “Next we are opening the first
Dermacenter, which will feature La Roche
Posay and Vichy, with London Supply in
Iguazu, followed by a Dermacenter and
another Kérastase hair studio in Terminal 2
in Mexico City with Grupo Wisa.”
A new collaboration
While these two new divisions are
not directly linked to the travel retail
distribution channel, Lacunza explains that
L’Oréal sees them as an opportunity and
an added value for everybody, although
not without their own challenges: “We are
providing good products and good brands.
But we already have distribution in the
domestic market and needed to reinvent the
concept somehow. For retailers it means
a new category, something that was not
present in the market before, which will
provide additional sales.”
Unlike most travel retail distribution,
L’Oréal is partnering its Active Cosmetics
& Professional Products travel retail offer
with the local market, says Lacunza.
“Travel retail usually operates
independently. But in this case, travel retail
and the domestic channel are collaborating
in many senses, and operating jointly. We
are creating synergies in terms of training,
selection of people, and in the end giving
the domestic market feedback about the
customer that we capture in travel retail.
From this information, the domestic retailer
can provide long-term customer follow up.
We want to give the same message to the
same customer but in different channels,”
he says.
“Our goal is to use the travel retail
location to reach a customer we might
not reach before. We want to create
loyalty and an attachment to the brand
that will continue in the local market,”
explains Maria Laura Fernandez, Retail
& Education manager, ACD & PPD, who
helps coordinate the connection between
the two channels.
Dermacenters
L’Oréal is focusing on two of its most
important dermocosmetic brands in the
new travel retail Dermacenters, Vichy and
La Roche Posay. Both brands meet a range
of different skin care needs from normal to
blemish-prone skin, and are traditionally
sold in healthcare outlets worldwide,
including pharmacies, drugstores, and
medi-spas, especially in France and South
America.
Vichy is one of the world leaders in
cosmetic skincare, available at 90,000
points of sale in more than 60 countries.
Vichy is considered the pioneer in using
medical research and clinical tests in
skincare, and created the concept of
unique “skin types” that required customtailored treatments. All the Vichy skincare
formulations are based on the therapeutic
virtues of Vichy Thermal Spa Water.
La Roche-Posay—specially
designed for hypoallergenic skins and for
treating dermatological conditions -- is
recommended by 25,000 dermatologists
worldwide. Its formulas are based on the
La Roche Posay Thermal Spring water, and
feature a high concentration of minerals
and are fragrance free. L’Oréal reports that
the brand’s two leading markets are France,
and Brazil where La Roche-Posay ranks
first nationwide.
The L’Oréal Dermacenter has
been designed as a pharmacy capsule to
immediately immerse the customer in a
dermo-cosmetic universe, explains Loubna
Benzakour, Marketing Manager, ACD &
PP Division.
“Our derm-advisors are professionally
trained to offer personalized consultation
using a Dermanalyzer, which delivers
microscopic precision testing on hydration,
sebum, pores, melanin, break-outs and
wrinkles. The goal is to provide a unique
retail experience for the customer who
is concerned with her health and looking
for accessible, efficient and innovative
skincare,” she says.
Airports and more
Even if Kérastase hair salons and
Dermacenters have primarily been
designed for airports, the opening in
London Supply is good proof of the
flexibility of this retail concept.
The Kérastase Travel Retail Hair Salons feature travel retail exclusive sets and a professionally-staffed styling station to provide special services
designed for rapid turnaround.
36
37
INSIDER
“Airports will be the main focus of
the business, but we also have downtown
shops and cruise boutiques. The model is
applicable to many different travel retail
formats; but it is still about airports,” says
Lacunza.
The second Kérastase Travel Retail Hair Salon opened in collaboration with Grupo Wisa in
Mexico City Airport’s Terminal 2 on May 22.
Both London Supply
in Iguazu and Grupo
Wisa in Mexico City
are also opening
Dermacenters that
feature Vichy and
La Roche-Posay
products.
38
“We know that airports have time
constraints, so the service we provide has
to be provided in a short period. We offer
an in-salon experience that can be enjoyed
in a three-minute, a five-minute or a 15minute segment,” he explains.
“For three minutes we can provide
a professional hair & scalp diagnosis.
For five minutes we offer a Flash Style
Refresh or Ultra Shine Touch Up, and
for 15 minutes our hair experts can do a
professional blow dry or a luxury scalp
massage. The Dermacenters also provide
individual diagnosis and tailored services.
Both concepts also offer a selection of
travel retail exclusive sets.”
Southern appeal
“We have good brand awareness
in South America, especially in Brazil,
Mexico, Argentina, Colombia and
Venezuela. The South American mix in the
airports is obviously our strongest point,
and that is opening immediate opportunities
in South and Central America. However,
we also have very good awareness in
Canada and to some extent in the USA,
so there is no doubt we will also have
many opportunities in U.S. and Canadian
airports.”
“So the first stage will be South and
Central America, then we will look at the
Northern airports that have a more South
American mix. These brands are also
being launched in Asia. So we will see
the response there, and then design our
program to accommodate that as well,”
says Lacunza.
Opening the new Kérastase hair
care and Dermacenters in travel retail
is a process, one that entails a strong
partnership between L’Oréal and the
retailer.
“Travel retail is an expensive channel,
because of the cost of space,” says
Lacunza. “By upscaling the space, the
retailer and L’Oréal will incur costs. When
you build a new category, the retailer and
the brand have to work together.”
Lacunza says that L’Oréal expects
to have the most important aiports open
between the end of this year and the third
quarter of next year.
“This is very ambitious especially
since each spot will be tailor-made. Of
course we are concentrating first on the
airports that have the volume to make this
concept sustainable.”
“But at the end it is a global
implementation. And we are going forward
gradually, step by step,” he says.
INSIDER
Tairo International launches new sister company for professional
hair & beauty products, adds hot brand Moroccanoil to portfolio
Robert and Tania Bassan, the owners
of the very well-respected Caribbean
beauty distribution company Tairo
International, have officially announced the
opening of a new, separate sister company,
SOMAR Beauty.
SOMAR is a distributor for beauty
and professional hair care brands servicing
Caribbean local and travel retail stores,
professional hair salons, spas and beauty
supplies, as well as the Mexico travel
retail market. Currently, the company
distributes highly recognized professional
hair care brands Phyto, Phyto Specific and
Rene Furterer, as well as OPI. In addition,
SOMAR was recently appointed the official
distributor of the revolutionary innovative
Moroccanoil line of hair products.
“We are very excited about SOMAR,
which was established in response to the
needs of the market,” Tairo International
President Robert Bassan tells TMI during
a recent meeting at the company’s Miami
Beach headquarters. “We saw that there
was an opportunity in the market with
a developing trend for specialty and
professional beauty products when we
noticed that some of the more upscale
department stores in the U.S. were
dedicating more space in the fragrance
and cosmetics departments to professional
hair care products. We realized that this
business complemented the fragrance and
cosmetics business but did not cannibalize
it, and we thought this could be interesting
for our Caribbean and travel retail Mexico
markets as well.”
Bassan points out that the fragrance
and cosmetics business in the Caribbean
continues to become more competitive,
especially on pricing versus the U.S.
domestic market: “We thought by
introducing professional hair care brands
to the travel retail market in our region, we
could avoid the pricing challenge we were
seeing with fragrances. So we started to
explore the market, talking to some of the
more select hair care brands out there. We
found out that they were also interested
in exploring this market, looking at travel
retail as a good way for them to expand
their business.”
SOMAR Beauty started with a core
group of brands, said Bassan: “We have
Phyto out of Paris with the Ales Group,
which has been pioneering natural products
for the hair for 40 years; and Rene Furterer,
another major hair and scalp care brand
out of France that specializes in using pure
plant extracts and essential oils. From
there, through our partnership with Coty,
we started to distribute OPI nail lacquer
in travel retail stores in the Caribbean. We
recently had Coty expand that distribution
SOMAR Beauty features Hair Diagnostic events with technical experts for its Phyto and Rene
Furterer brands like this one held at La Casa Amarilla (The Yellow House) in Curaçao.
39
to salons and spas throughout the region.
And we are in the process of doing the
same with all the other hair care brands,
rolling them out in the Caribbean and
Mexico travel retail.”
“The last brand we have added to
the portfolio—which we are incredibly
excited about – is Moroccanoil. These
high-performing, oil-infused beauty
products are creating a world-wide buzz
on argon oil and paved the way for an
extensive line of premium oil-infused hair
care products to address the needs of all
hair types. Moroccanoil decided to expand
into travel retail about two years ago, when
it previewed its line in Orlando. They
started with Heinemann in Europe (first in
Scandinavia), and they are with DFA, you
can see it in Miami Airport and Atlanta,
plus some other important operators around
the world. We are using the appointment of
Moroccanoil to announce SOMAR to the
industry, explain what it is about and what
we are doing.”
Bassan says that the structure of
SOMAR Beauty very much reflects the
DNA of Tairo.
“Many of the former team members
of Tairo, who helped build the business,
have transferred over to SOMAR. It is a
completely separate company—the only
crossover is ownership, the shipping
platform and warehousing. But it is a
separate team. This works well because
SOMAR has a different dynamic than
Tairo.”
Bassan explains that the fragrance and
cosmetics business is more dynamic when
it comes to launches than the hair care
business, which depends on more of a longterm strategy.
“The hair care business also needs
much more technical support so we have
people onboard from the hair care industry
that are providing training and sales
support at the point of sale, another reason
we need to have a wholly different team,”
he says.
SOMAR also has a larger footprint
than Tairo’s traditional business. “Whereas
the majority of Tairo’s fragrance business is
through travel retail – both downtown and
airport operators, SOMAR is selling to hair
salons, nail salons, spas, and in some cases,
INSIDER
pharmacies, in addition to travel retail
stores. So it has really expanded the reach
of our business,” explains Bassan.
“So far, the feedback has been great
and sales have been very good. We are
actively growing the company and are very
excited about it,” he adds.
SOMAR diversifies the group in two
ways, both through a different product offer
as well as through different clients. The
concept was first introduced to the buyers
and the top BAs in the Caribbean/Mexico
TR market at the Tairo Beauty Conference
in September 2013. The Beauty Conference
that will take place at the Hard Rock Resort
in September 2015 will be the first one
that will fully encompass both Tairo and
SOMAR at the event.
All the SOMAR brands – with the
exception of Moroccanoil which is just
rolling out – are already in the market, says
Bassan.
“Moroccanoil – which had only
been available in hair salons – opened
up travel retail about two years ago (they
were in Orlando the last two years) – and
have developed a number of travel retail
exclusives, travel retail sizes, travel
The Phyto launch in The Cayman Islands was
kicked off with a special Hair Diagnostic event
in Kirk Freeport, organized by SOMAR Beauty.
retail sets and their body products, which
were launched last year. They are doing
extremely well,” he says.
“Moroccanoil will be quite exclusive,
limited to one-two retailers in each market,
and will be introduced in a three-phase
roll out. The first phase will start in MayJune; followed by phase two in the second
semester of this year and phase three in the
first half of 2016. We are offering a 15-20%
discount to U.S. local market prices, and
the Body assortments are in very selective
availability in U.S. local market, so they
will almost be travel retail exclusives. Our
retailers are clamoring for the brand,” he
says.
The new brands have permitted Tairo /
SOMAR to use a number of new marketing
and presentation tools at the point of sale.
“We do Hair Diagnostics where our team
goes in to train the retail staff, and often
we add store events for consumers – it is
a dynamic way of introducing the brand
and the BAs and end consumers love them.
Even though our channel is travel retail, a
significant portion of sales is local market
and the shoppers come back.
The next Tairo Beauty Conference
will take place in September at the Hard
Rock Hotel and will include more than
100 beauty advisors and will be split up
between Tairo and SOMAR.
“The theme is that we are celebrating
the Tairo Rock Stars, along with Rock
music, the Hard Rock, and so on. We
are running promotions right now in the
Caribbean where the top sellers will be
honored.”
FFG launches high-end Perry Ellis OUD
line of fragrances for Middle East
Duty Free Americas’ Falic Fashion
Group division has created a completely
new line of high end fragrances for Perry
Ellis specifically for the Middle East
market.
Called Perry Ellis OUD, the line is
initially made up of three distinct scents:
Black Vanilla Absolute, Saffron Rose
Absolute, and Vetiver Royale Absolute.
Each fragrance in the collection is
presented in an elegant heavy glass black
bottle with gold metal plaque identifying
the scent, and features a unique, ornate
gold cap with color coordinated felt inside
for each individual fragrance. A substantial
gold collar with metal rivet screws in
the base of the collar, adding a luxurious
sophistication.
The outer carton is embossed with
an elegant black Arabesque design with a
linear interlacing pattern and striking gold
hot-stamp accents. Logo plaques on the
front of cartons are color coordinated for
each individual fragrance.
40
Black Vanilla Absolute opens with
a rich medley of Rhum and Vanilla
Absolute blended with an opulent Vanilla
CO² Extraction. The heart and drydown
exude OUD, Dark Amber and rich Tobac
Absolute.
Saffron Rose Absolute intertwines
Spanish Saffron with Black Halfeti Rose.
Heart notes of warm Labdanum Incense
dry down to Indian Sandalwood and OUD.
Vetiver Royale Absolute opens with
Black Peppercorn, cultivated Haitian
Vetiver and native Siberian Juniper,
finishing with notes of dark OUD,
Indonesian Patchouli and Rich Atlas Cedar.
OUD, often referred to as Agarwood,
is a unique aromatic wood coming from the
resin of the Aquilaria tree which originates
from India and Southeast Asia, and has
become the most expensive oil in the
world, often referred to as “liquid gold”.
OUD has been widely used to make highquality incense for many centuries and has
been in high demand in the Middle East;
recently, OUD has been extensively used as
a perfume oil.
41
INSIDER
Puig creates Prada Candy Kiss TR mini set
Prada Parfums has introduced
Prada Candy Kiss - a new limited edition
miniatures collection - in collaboration with
the graphic artist Vahram Muratyan. The
artist is best known for his visual wit as
shown in his acclaimed book, Paris versus
New York. With Prada Candy Vahram
Muratyan plays with scale and creates a
new and delightful small is beautiful world,
where Candy fragrance goes bite-size.
All the fragrances are blended by the
perfumer Daniela Andrier under the artistic
direction of Miuccia Prada.
The collection consists of 3 existing
Prada Candy fragrances in 20ml miniature
formats - Candy EDP (the most intense),
Candy L’Eau and Candy Florale. A Travel
Retail exclusive set (a 3x20ml set) has been
available as of May.
Hermès opens in new Saks Fifth Avenue in luxury San Juan Mall
Hermès opened its second perfumery
counter or carre in the Caribbean in San
Juan, Puerto Rico in March. Following its
debut in Saks’ Herald Square in New York,
the new Hermès Carré is located in the new
Saks Fifth Avenue in the beautiful new
Mall of San Juan, which opened in Puerto
Rico on March 26. The Mall also includes
a Nordstrom, the first on the island, as well
as other high end boutiques.
The Mall of San Juan is the first
upscale mall in Puerto Rico, just two miles
from the San Juan Luis Muñoz Marín
International Airport, featuring a 138,000
square foot Nordstrom and a 100,000
square foot Saks Fifth Avenue.
Hermès fragrances are handled by
Essence Corp. in the Caribbean.
Estée Lauder signs Eva Mendes as face of new skincare range
Estée Lauder has announced the
appointment of Hollywood actress Eva
Mendes to represent the brand’s New
Dimension transformative skincare
collection, debuting later this year.
“Since my teenage years, I have
always admired Estée Lauder, the woman
and the brand,” says Mendes in a statement.
“I’m excited to represent New Dimension
skincare because I can relate personally to
what it stands for – the power we have as
women to take control and transform our
own beauty.”
Mendes’ TV, digital and print ads for
the brand will debut in Fall 2015.
“As an actress, businesswoman
and now a mother, Eva understands the
power of transformation that is at the heart
of our new approach to beauty,” Estée
Lauder’s Global Brand President, Jane
Hertzmark Hudis, added. “Eva’s warmth
and approachability will help us share this
incredible story with women around the
world.”
The upcoming skincare collection
features New Dimension Shape + Fill
Expert Serum and New Dimension Expert
Liquid Tape – which will work to define
and contour skin. New Dimension will
launch globally beginning July 2015.
Photo courtesy of Éstee Lauder
42
INSIDER
Obaku Denmark showcases new collections targeting
Travel Retail at JCK & ASUTIL events
Following an overwhelming response
during its TR Americas’ launch at the
IAADFS convention in March, Obaku
Denmark is partnering with key retailers
throughout the Americas. The new stores
will implement its VIP program that
includes its Obaku Air fixtures; premium
POS materials, and an assortment of
the best-selling designs for both ladies
and gentlemen. Besides these, Obaku is
introducing the V165, a model that will
be exclusive for duty free stores in the
Americas.
For the spring and summer of 2015,
Obaku is also introducing a new selection
of color straps,
adding a cheerful touch to the classic and
elegant popular lady styles V129 and V146.
The straps come in bright blue, bright pink,
bright purple, yellow, orange and red, and
have been a strong addition to Obaku’s
classic Danish designs.
Obaku’s new collection launched in
Basel 2015 will be introduced in June at
both JCK Las Vegas trade show and the
ASUTIL Conference in Panama.
Please contact katherine@obaku.com
or autum@obaku.com to see the line.
Buckley London brings new innovations to ASUTIL
UK jewelry brand Buckley London
will present its latest innovative designs
and merchandising concepts at ASUTIL to
help strengthen its already thriving position
within the travel retail and downtown
markets.
Key Buckley London designs include
the Linked with Love collection, featuring
a sentimental message and representing the
symbol of eternal love through interlocking
curved castings. It uses sparkling pave-set
cubic zirconias and polished textures to
create a contrasting look, plated in rose
gold and rhodium tones. The collection
consists of pendant, hoop earrings and a
ring.
The ‘Mixed Shape’ Collection, with
faceted-cut stones, uses bezel-set cubic
zirconia to form light and airy three
dimensional shapes. The collection is
available in both rhodium and rose gold
plating.
“We are confident that Buckley
London is a great match for the retailers
in South and Central America, based on
our impressive sales results with retailers
and airlines in the region. We are looking
forward to sharing our results and plans
with our current and future partners,”
comments IBBI’s Katherine Sleipnes,
exclusive representative of the brand in the
Americas.
Neil Thompson, Global Sales Director
of Buckley London added: “We are very
The Mixed Shape Collection
excited about the rate of growth within
the Americas. We have already expanded
distribution into key airports throughout
the Americas, as well as cruise ships and
downtown doors. With the success of
the self-select and interactive ring tester
concepts, this will only help drive sales.
We are working on a number of additional
merchandising concepts which we hope to
preview soon.”
For an appointment at
ASUTIL, please contact Melanie@
internationalbrandbuilders.com
IBBI expands with new staff and brands
International Brand Builders (IBBI)
has partnered with industry veterans to
expand coverage and strengthen brand
representation in South America and
Canada. Virginie Cordero is the new South
America business development manager to
represent the IBBI brand portfolio, together
with her other brands, in Latin America,
reports IBBI owner Katherine Sleipnes.
To handle the growing duty free and
domestic business throughout Canada,
IBBI welcomes Leslie Stanton in the
Quebec region, Greg Dowell in the Ontario
region, and Leigh McBain in the Western
Canada region.
Melanie Velasquez continues to
43
represent IBBI in Central America and
Mexico, and Zoila Andonie handles select
customers in the Caribbean and airlines.
IBBI added watch brands OBAKU,
MASERATI and JUST CAVALLI to its
portfolio in February.
“These brands are complementary to
our jewelry lines from Buckley Jewellery
Ltd. and are in line with IBBI’s mission to
represent ‘Affordable Luxury’ brands that
sell through quickly,” notes Sleipnes. IBBI
also represents designer sunglasses and
cosmetics.
Please contact katherine@
internationalbrandbuilders.com for more
details.
INSIDER
New Duty Free Dynamics brings top-selling Guess watches
to travel retail in LATAM-Carib
Duty Free Dynamics, a brand new
company based in Panama, announces its
partnership with Sequel AG, the worldwide
manufacturer and licensee of the Guess
watch brand. Under the new agreement,
Duty Free Dynamics has been granted the
exclusive distribution of Guess watches
in the LATAM and Caribbean travel retail
markets.
Duty Free Dynamics is made up of a
team of energetic and highly trained, multicultural personnel who bring a wide range
of experience to the new venture and are
focused on delivering first class customer
service. To meet this goal, the company has
divided the region into three zones, with
strategic platforms in Miami and Buenos
Aires, as well as Panama City.
Company CEO Nicolas Dobry has
more than 20 years of experience within
the luxury/watch/fashion industries.
Dobry is assisted by CFO Martin
Mairal and Mitzi de Ganczarski in
marketing. Ganczarski, a Panamanian
native, has held marketing positions
in consultancies in London, Spain and
Panama.
In Sales, Paula Martinez is wellknown in travel retail circles from her
25 years with LVMH Watch and Jewelry
(TAG Heuer, Zenith and Dior, etc.) where
she was in charge of Mexico, the Caribbean
and the Central and South American
markets. Martinez will be handling the
South American region for Duty Free
Dynamics.
Angelique Puig, Commercial Manager
for Central America and Mexico, has a
background in law and business and has
worked in France, Spain, Argentina and
Panama, prior to becoming part of HDG
and DFD.
Alejo Lopez de Armentia,
Commercial Manager for the Caribbean,
Guess Watches - INDIGO ILLUSION combines emerald tones intertwined
with exotic blue hues and flecks of gold producing a style of chic
dramatization mixed with subtle sport influence. The petite stainless steel
multifunction, with chronograph inspiration, features a polished IP blue case
and matching bracelet with pilot buckle. The dial features python details in
emerald, gold and various shades of blue. Self-adjustable G-links create a
functional, easy to-wear masterpiece
has been handling sales, promotions and
merchandising for a variety of duty free
watch, accessories and fashion brands over
the past four years, and has developed
strong relationships with clients and sales
staff throughout the region.
Duty Free Dynamics is partnering
with Sequel AG, which has held the Guess
watches license for the past 25 years.
Guess watches are sold in more than 114
countries worldwide through its associated
distributors network, generating over half a
billion dollars in retail sales globally. Guess
watches are the largest licensed watch
brand in the world.
Duty Free Dynamics will be showing
the latest collections of Guess watches
for men and women in ASUTIL. For
more information, please contact sales@
dutyfreedynamics.com
PRECIOUS METALS. GUESS Watches revolutionizes its rose colored
palette by pairing it with an unexpected, chic grey color; bringing
forth the look and feel of precious metals. With the addition of python
prints, GUESS creates its newest animalistic group of “young, sexy and
adventurous” wrist accessories. The collection includes a sport-infused
multifunction and a midsize design with chronograph inspiration.
44
GUESSWATCHES.COM
Exclusive Distributor of Guess Watches for Latin American and the Caribbean travel retail market
Please contact us at sales@dutyfreedynamics.com or call us to +507 836 6001 – Panama City – Panama
45
INSIDER
Herradura: bringing quality tequilas to the market since 1870
Although Herradura tequila did not
become part of drinks company BrownForman until 2007, both companies have
been around since just after the American
Civil War, creating world-renowned spirits
for almost 150 years. Both companies also
shared a tradition of quality and innovation,
one of the foundations that has helped drive
Herradura as it has spread from Amatitan,
Jalisco, Mexico to the world.
“The greatest asset we have in
Herradura is its heritage and authenticity.
Herradura came into being in 1870, the
same year Brown-Forman was established.
And our distillery – Casa Herradura in
Jalisco, Mexico - is steeped in history
and tradition; it was, after all, one of the
founding distilleries of the entire tequila
industry,” Marshall Farrer, VP, managing
director of Brown-Forman Global Travel
Retail, tells TMI.
While the brand has been around for
more than a century, it is now growing
in popularity more than ever. Farrer says
that today’s spirits drinkers are more
sophisticated in what they buy, and are
looking for a more premium tequila than in
the past.
“Herradura is simply a terrific tasting
tequila. As we conduct Herradura tastings
at various travel retail outlets around the
world, it is continually reinforced that if we
can expose consumers to its outstanding
taste and finish they are inclined to embrace
it,” he says. “Today’s international travelers
are savvy, sophisticated and passionate
about authenticity. They also have great
interest in taste and premiumization.
Herradura can readily boast of all these
attributes.”
Herradura’s taste and drinkability, as
a 100% blue agave tequila, have helped
change the perception of the tequila
category, associating the brand more with
sipping drinks than with the “shooters” of
the past.
“In nearly every instance, the poor
perception of tequila rests with an early
experience with an inexpensive and
poorly made tequila - that was probably
consumed as a shot. As I mentioned,
today’s international traveler is much more
sophisticated. So when they see Herradura
in a travel retail outlet they are inclined to
associate it with a fine cognac or bourbon
rather than a shot or margarita. Premium
and super-premium tequilas are recognized
as a great tasting spirit that should be
sipped and savored,” he says.
Brown-Forman has used travel retail
to showcase Herradura since it bought the
brand and the channel often serves as an
introduction to the brand for consumers.
“Each of our products that we sell in
a travel retail outlet can help solidify or
establish our presence in the country of
final destination. Therefore, we feel the
travel retail channel will play a significant
role in the growth and distribution of
Herradura around the world. We have good
news in that the super premium category
– of which Herradura is a leading player
- is growing rapidly and is changing the
overall perception of tequilas. We will
make extensive use of travel retail for
Herradura.”
Top: Brown Forman hosted the travel retail press at
Casa Herradura.
Bottom: Jimadores cut and harvest the agave that
becomes Herradura Tequila.
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47
March
2015
IAADFS/MHA
Issue
June
2015
ASUTIL
Special Issue
INSIDER
Real history and innovation
Herradura tequila is produced by Casa
Herradura, one of Mexico’s most historic
and renowned tequila producers, on the
premises of a 19th century Hacienda in
Amatitan, Jalisco, which Travel Markets
Insider toured in April. The original
factory, known as Taberna, was built in
1870 and stayed in full operation until
1963.
While the scale of the factory and its
seemingly endless fields of agave have
grown, Herradura has not sacrificed quality
as it has expanded production.
Tequila Herradura is crafted using
only the most mature blue agave, which
Top: The oak barrels play
a critical role in crafting
Herradura Tequila.
Left: The agave before it is
put in traditional clay ovens.
48
is grown in lowland fields owned by the
company. Casa Herradura grows more
than 15 million agave plants, which are
hand-harvested by jimadores. The agave
core, called the piña, is then slowly baked
in traditional clay ovens, after which it is
crushed and fermented with natural yeast
produced by the agave plants and trees on
the Herradura property. The distillery has
62 fermentation tanks holding a total of
1.14 million gallons.
After fermenting, the agave
juice, called mosto, is heated at lower
temperatures than most modern tequila
distilleries. The mosto reaches a lower
proof, preserving the complex flavor of the
juice. It is then distilled two times.
The liquid is then placed in barrels
for aging. Brown-Forman takes great pride
in the wood it uses for its barrels. The
company owns two cooperages allowing
it to control all aspects of the production
process for its spirits.
“Oak plays a key role in crafting
Tequila Herradura. Every single one of
Tequila Herradura’s expressions, Silver,
Reposado, Anejo, Extra Anejo touch White
American Oak wood. Our Silver expression
touches wood 45 days, Reposado 11
months, Anejo 2 years and extra anejo
49 months. We consider wood to be an
important ingredient in our recipe,” says
Farrer.
Herradura ages its tequilas in barrels
longer than the minimum required by
Mexico law, allowing the wood to give the
tequilas a darker color and a more complex
taste.
Herradura Añejo, which was
introduced by Casa Herradura in 1962,
matures in the barrel for 25 months,
which is more than double the 1-year age
requirement.
Herradura is credited with introducing
the first-ever reposado tequila in 1974.
Herradura Reposado ages in the barrels for
eleven months, much longer than the two
months required by law for this category.
Herradura’s great care is paying off.
Tequila volumes are growing in the U.S.,
with growth concentrated on the super
premium category, according to DISCUS.
“The super premium tequila category
is growing rapidly and we expect it to
continue to do so as the interest in premium
products continues to build and consumers
become more familiar with the great
taste and rich history of tequilas such as
Herradura,” says Farrer.
INSIDER
Patrón tequila: crafting a new ultra-premium spirits category
The perception of tequila has shifted
drastically over the past two decades.
Its image has evolved from a harsh shot
college students ritually chugged with salt
and lime, to a smooth sipping spirit enjoyed
neat or on the rocks. Patrón, the world’s
first ultra-premium tequila, has played
a large role in transforming that image,
helping change the image in consumers’
minds with every bottle sold.
“No other spirits category has evolved
this quickly, changing its image and
perception so dramatically. Think back
25 years ago how absurd it would have
been to think of enjoying a fine tequila just
as you would a scotch or cognac. But of
course it’s commonplace today, because
people now recognize that a high-quality,
well-made tequila like Patrón is a flavorful
and versatile, sophisticated spirit,” John
Kilmartin, Global Travel Retail Director at
Patrón Spirits International tells TMI.
“We’re very proud that Patrón is
widely credited for changing the way
people perceive and enjoy tequila. While
tequila is still a spirit for celebratory
occasions, it is not only shots and
margaritas that define Patrón. We work
hard to educate retailers, bartenders
and consumers about the versatility and
mixability of Patrón tequila – pretty much
any cocktail you can make with vodka or
other white spirits, tastes great using Patrón
instead.”
While Patrón does not have hundreds
of years of history behind it (the brand
was not created until 1989), it does have
a deep commitment to high-quality,
handmade craftsmanship with its tequilas,
which members of the travel retail media
were able to experience first-hand during
a visit to Hacienda Patrón in April. The
company owners have even brought back
the traditional and time-consuming tahona
process to make some of its tequilas,
including the new Roca line, which is a
travel retail exclusive outside the United
States.
Patrón tequilas are produced using
100% blue agave grown in the Los Altos
area in the Jalisco Highlands, Mexico.
Patrón calls this the premier growing
region for Weber Blue Agave because of
the area’s unique red soil rich in iron oxide
with a clay-silt mixture that enhances the
plant’s growing capability. Patrón’s agave
piñas are slowly steam baked in its smallcapacity brick ovens in a lengthy process
that takes place over 79 hours. The slow
cooking creates unique flavor compounds
that Patrón says contributes to the aroma
and taste of its tequilas. This is why it does
not use autoclaves or diffusors, which are
faster and cheaper, says the company.
Travel retail key to showcase the Patrón
difference
Because of its quality, Patrón has been
able to use travel retail as an important
channel to launch the tequila on the world
stage.
“Several years ago when we first
began to expand internationally, duty free
was the first market we targeted because
there’s simply no better retail channel than
duty free to reach affluent, cosmopolitan,
sophisticated consumers,” says Kilmartin.
The company has created products
that have been exclusive to the channel
including the Roca series, as well as Gran
Patrón Piedra, an extra añejo tequila aged
about 4 years in new American and French
oak barrels, created using only the tahona
process.
Patrón is often credited with
propelling the ultra-premium tequila
category to new levels of growth around
the world.
DISCUS reported that in 2014 tequila
volumes were up 5% with revenue up 4%
in the U.S., with the growth concentrated in
super premium tequilas. According to the
IWSR, from 2009 to 2013 tequila volumes
grew by a compound annual growth rate
(CAGR) of 4.2% to reach 26.7m cases in
2013.
“We’ve seen tremendous growth
The heavy stone tahona wheel crushes the agave. Patrón is the largest tahona tequila producer in the world.
Right: Patrón uses several different types of barrels with varying toast levels to give its core aged tequilas
different flavor characteristics: new French oak, used American oak, and new Hungarian oak.
49
INSIDER
over the past several years, but the tequila
category is still very much in its infancy
in many markets and so we definitely see
the opportunity for continued growth,
especially in regions such as Europe, Asia
and the Middle East where ultra-premium
tequila is not as widely understood yet,”
says Kilmartin.
Even with its impressive growth,
Kilmartin says the tequila category is still
under-represented on-shelf in duty free
stores.
“While we do have numerous
duty free partners who understand and
appreciate the potential of the category,
and the Patrón brand, it’s surprising how
under-represented the tequila category
is in many duty free stores. Tequila
(and especially Patrón) is outpacing
the industry in terms of popularity
and growth, yet it’s still difficult for
tequila brands to secure shelf space
and visibility. And even in stores where
tequila is available, often it’s the low-end,
unrecognizable ‘mixto’ tequilas on the
top shelf, when ultra-premium brands like
Patrón are commanding more consumer
excitement and profit potential.”
Patrón is distilled in stills designed by Master Distiller Francisco Alcaraz
The Patrón Process
What makes Patrón tequilas qualify
as an ultra-premium spirit? The quality
of the ingredients, painstaking attention
to detail and old world craftsmanship are
fundamental to the brand.
After Patrón’s agave piñas are slowly
steam baked in its small-capacity brick
ovens for more than 79 hours, the agave is
then crushed to extract its juice. Patrón uses
two separate crushing processes employing
both old world tradition and modern
technology. The roller mill separates agave
syrup from agave fiber. The slower tahona
mill uses a heavy stone tahona wheel and
a stone mill and keeps agave syrup with
agave fiber. Patrón is the largest tahona
tequila producer in the world with up to 10
tahonas working continuously.
The tequila produced from both
processes is combined to create the core
Patrón tequilas, along with its top-of-theline Gran Patrón Platinum and Burdeos
varieties. Roca Patrón is produced entirely
from the tahona process.
Patrón uses separate fermentations
for its roller mill and tahona processes,
but both take place in small-capacity pine
wood fermentators, rather than steel tanks.
Patrón is one of only four distilleries to use
wood fermentators, which create natural
thermal control for slow even fermentation,
but must be replaced every four years.
Roller mill distillation is conducted
without bagasse, the pulp, producing a
fruitier flavored distillate. For the tahona
side Patrón conducts the first distillation
with a mixture of mosto and bagasse in
small stills, under 800L in capacity, which
produces a more herbaceous agave flavor.
Patrón uses several different types
of barrels with varying toast levels to
give its core aged tequilas different flavor
characteristics: new French oak, used
American oak, and new Hungarian oak.
Roca Patrón tequilas are aged in used
American oak barrels.
Patrón tequilas are hand corked and hand
labeled. Each worker inspects the bottle, and the
work of the previous worker – 60 hands touch
every bottle.
Patrón tequila is produced from blue agave
grown in the Los Altos area of the Jalisco
Highlands
50
NEW
51
INSIDER
MONARQ Group grows portfolio into new categories
MONARQ Group has had an excellent
start to the year in 2015 after introducing
its new brands at the IAADFS Show in
Orlando in April, says Robert de Monchy,
MONARQ Managing Director/Owner.
“In Orlando we successfully
featured the Bacardi ‘specialty brands
portfolio’ with famous brands like B&B /
Benedictine, Baron Otard Cognac, Noilly
Prat, Oxley, Cazadores and Corzo. We
also showed the Quintessential Brands’
Gin portfolio for the first time and the
acceptance has been tremendous, especially
for Greenall’s, Bloom and Berkeley Square
London Dry Gins and the very unique
Opihr Oriental Spiced Gin. Furthermore,
we featured the excellent new brands
Licor 43, Michter’s American Whiskey
& Bourbon and our new Scotch whisky
brands, such as the unique Pig’s Nose and
Sheep Dip,” he says.
A particular IAADFS highlight for
MONARQ was Dan Aykroyd, co-founder
of Crystal Head Vodka, who visited the
MONARQ booth at the show.
After adding the Bacardi specialty
brands portfolio in the vast majority of
the Caribbean, the partnership has been
extended to Central America and a part of
South America.
“The addition of these brands filled a
number of the few remaining gaps in our
portfolio, such as in the Cognac and French
Vermouth categories. Besides, the deal
added some unique premium stand alone
brands such as Benedictine and B&B.”
MONARQ has had success in South
American duty free with Heineken,
Desperados Tequila Flavored Beer, Crystal
Head Vodka, Ole Smoky Moonshine,
Limoncello di Capri and Jefferson’s small
batch bourbon, says de Monchy.
“We have been very successful in
London Supply’s Iguazu store with the
continuous activation of Limoncello di
Capri through a sorbet ice cream machine.
We also run three to four Heineken
promotions, mostly GWP’s, each year with
our duty free customers in the region,” he
says.
“We have a well balanced portfolio,
in which innovations and new brands have
an important role. Especially, new gin
brands Bloom, Berkeley Square and Opihr
plus Alizé and Ole Smoky Moonshine
have been on the forefront lately. Although
Heineken, Bols, Zubrowka Bison Grass
Vodka and Crystal Head Vodka keep doing
very well.”
As MONARQ’s spirits portfolio
grows, the company adds to listings
throughout the region.
“We have listed Toussaint Rum
Coffee Liqueur at Port-au-Price Toussaint
Louverture International Airport and
will be donating US $1.00 per bottle to
the ‘Hand in Hand for Haiti’ foundation.
We also have a number of new listings
throughout the region with Crystal Head
Vodka, Jefferson’s small batch bourbon,
Zubrowka Bison Grass Vodka, Ole Smoky
Moonshine and AIX Rose de Provence.
We also recently added Alizé to our
portfolio, through the purchase of L&L
by Quintessential Brands, and are well
advanced with a number of listings.”
Even with a strong U.S. dollar,
MONARQ’s 2014 success has continued
into the start of 2015.
“2014 was our best year ever without
any major challenges. The Dufry merger
has not impacted our business, we are
working with them on Cachaca 51 and La
Fée absinthe.”
La Fée absinthe brings pre-war Paris to new generations
La Fée Absinthe has not stopped
expanding around the world since helping
start the second “absinthe renaissance” at
the end of the last century.
In 1998 George Rowley, La Fée
Managing Director & Brand Owner, began
his journey attempting to restore absinthe to
legal status in France, the European Union
and eventually, the world. That year he
secured the UK government’s authorization
on the document that allowed absinthe to be
legally sold in the European Union for the
first time since it was banned in 1915.
The brand, which was established
in 2000, is distilled using 100% natural
ingredients by a Paris-based distiller
following an authentic 19th century recipe
containing wormwood and is the only
absinthe authenticated by Marie-Claude
Delahaye, founder and curator of the
Absinthe Museum in Auvers-sur-Oise,
France.
“My company set out to change
absinthe’s status as merely an artifact of
the past. Reading about absinthe is one
thing. But seeing it, smelling it, tasting it,
and finally experiencing it takes one both
physically and mentally to another level of
understanding. Absinthe opens a door in
time to a bygone age, bringing to life the
heady atmosphere of Paris in the thirty years
of decadence and enlightenment which
led up to the Great War of 1914,” writes
Rowley on the La Fée web site.
In 2005 Switzerland repealed its
absinthe ban, followed by the United
States in 2006, and finally France in 2011,
allowing absinthe to return to its historic
homeland.
As the bans were overturned, the
brand began to spread throughout the globe,
resonating mostly with younger consumers
in their 20’s looking to taste the “forbidden
fruit,” says Robert de Monchy, Managing
Director/Owner for MONARQ Group,
which distributes La Fée throughout the
Americas.
A majority of the brand’s sales come
from the domestic markets in the UK, U.S.
and France.
52
In Americas travel retail, the biggest
markets are the borders with Brazil and the
Caribbean.
“Dufry has listed the brand in a number
of its stores in the Caribbean islands,” says
de Monchy, including Barbados, Trinidad,
Cozumel, Grand Turk, Jamaica, Roatán,
St Kitts, Trinidad, and Aruba, as well as
Chicago, Houston and Seattle in the U.S.
The brand is also listed with London
Supply, Shopping China, Penha Duty Free
in St Thomas, and Princess Juliana airport
in St Maarten, among others.
Since its introduction the brand
has won a number of prestigious spirits
awards, including from the Spirits Business
Absinthe Masters, San Francisco World
Spirits Competition, International Wine
& Spirits Competition (UK), Beverage
Testing Institute (Chicago), Absinthiades
(Pontarlier, France) & The Los Angeles
International Wine & Spirits Fair.
Recently, La Fée launched a new bottle
with a special UV inhibiting coating to
protect the liquid against sunlight.
53
INSIDER
Beam Suntory’s Taste of Kentucky
The legacy of Bourbon runs deep in Kentucky, and TMI’s Lara Pasternak hit the trail under the tutelage of
Beam Suntory brand ambassador Gordon Dundas together with a group of duty free journalists to
discover the workings of Maker’s Mark and Jim Beam.
Alongside apple pie, perhaps
there is no more quintessentially
American product than that of
bourbon whiskey. With a heritage
born over 200 years ago from
the limestone hills of Kentucky,
bourbon has grown into an
international spirit savored and
served the world over. Today, 95%
of the world’s bourbon is still
produced in Kentucky.
The story of bourbon is
important in travel retail as distilled
spirits delivered steady growth
last year. According to a Distilled
Spirits Council of the United States
(DISCUS) report from February,
Bourbon and Tennessee Whiskey
volumes rose 7.4% to over 19
million cases, generating $2.7
billion in industry revenue in the
U.S. With continued worldwide
fascination with American
whiskies, innovations in flavor,
and premiumization across all spirit
categories, the bourbon industry is
looking forward to another successful year
of growth in duty free. IWSR data shows
that from 2003-2010, bourbon sales were
up 3-5% annually, with recent growth up
by 7-8%. A new report by Vinexpo and
IWSR forecasts bourbon sales will jump by
19.3% to 45m cases in 2018.
The Beam Suntory portfolio contains
several essential bourbon brands including
category-leading Maker’s Mark and Jim
Beam.
The smell of sweet yeast and old
wood greets visitors who come to tour the
Maker’s Mark distillery in picturesque
Loretto, Kentucky. After walking through
the steps of the Maker’s Mark craft process,
visitors can experience Maker’s Mark,
Maker’s Mark Cask Strength, and Maker’s
46 in the tasting room before purchasing a
bottle of their own to hand-dip in Maker’s
Mark’s signature red wax.
After the unprecedented growth and
success of bourbon in America in the early
2000s, Maker’s Mark underwent a 50%
expansion for infrastructure improvements
in 2012 and 2013. These renovations
resulted in a 45% increase in production.
The Jim Beam Visitor’s Center.
The company is currently adding a
third still, third mash cooler, and additional
cookers and warehouse space with goals of
producing 2.3 million cases by 2019.
Rob Samuels is the current president,
CEO, and grandson of Maker’s Mark
founder, Bill Samuels, Sr. Rob is descended
from generations of the Samuels family
who have distilled whisky, and not always
successfully. He comments on the legacy
of his grandfather and the next steps for
Maker’s Mark:
“Our family made really, really bad
whisky for about 300 years, and thankfully,
he [Bill Samuels, Sr.] had the courage to
come down here and chase his dream,
which we’re working very hard to make
a little bit more so we can expand in duty
free and other channels around the world.
We had no growth for the first 30 years, but
for the last 30 years, we’ve sold every drop
we’ve made.”
Alongside Samuels, Master Distiller
Greg Davis and the rest of the Maker’s Mark
family work to ensure the company’s legacy
continues to be an American success story.
54
Jim Beam
You cannot discuss success
in the bourbon industry without
speaking of Jim Beam. Since 1795,
seven generations of the Beam
family have produced bourbon
without pause (Prohibition aside).
Today, Jim Beam is the #1 selling
premium bourbon in the world.
Headquartered in Clermont,
Kentucky, Jim Beam has continued
to expand its portfolio, adding
small batch and infused whiskeys
to their traditional line. In the
1980s, then Master Distiller and
grandson of Jim Beam, Booker Noe,
experimented with stills and ages
to produce the small batch bourbon
collection, proving bourbon wasn’t
just for old men. This ultra-premium
collection, which includes Knob
Creek, Booker’s, Basil Hayden’s,
and Baker’s, has received numerous
accolades in the 2000s.
Today, Booker’s son Fred Noe
continues the Jim Beam heritage as
Master Distiller. Possessing a larger-thanlife personality, Fred Noe regales visitors
with colorful stories of his family’s legacy
that sound best over a glass of bourbon.
Noe is also responsible for the Jim Beam
Signature Craft Series, which includes Jim
Beam Signature Craft 12 Year. As Noe
states, “Even though we are the largest
bourbon, we can do small batch.”
Every year, thousands of visitors pour
into Jim Beam’s American Stillhouse,
which opened in 2012, to tour the distillery,
experience tastings, and purchase Beam
merchandise. Additionally, Jim Beam’s
Urban Stillhouse is under construction in
downtown Louisville, and slated to open in
Fall 2015.
As Booker Noe said, “I know bourbon
gets better with age because the older I get,
the more I like it.”
The bourbon industry’s journey, which
started so long ago in a budding country,
certainly seems to have achieved the
American dream. From small beginnings
to worldwide success in travel retail, the
bourbons of Beam Suntory’s portfolio offer a
taste of Kentucky and a true taste of America.
2015 Data Release
Analyse the global alcoholic drinks markets by volume and value
with the latest data from the IWSR – available now.
What’s included in the release?
•
Volume and value data for the domestic and duty-free markets, by category, quality and brand.
•
Research and analysis covering 155 countries – including 21 markets in Sub-Saharan Africa.
•
Retail value data now covers still light wine.
•
2015 volume forecasts.
Sign up to receive alerts when new data and reports are released.
Scan the code or visit www.theiwsr.com to sign up to receive
tailored news, updates and press releases from the IWSR.
Contact Graziella Jeffery for more information or visit our website.
Tel: +44 (0)20 7689 6834
Email: graziella@theiwsr.com
www.theiwsr.com
55
INSIDER
American iconic brand Hershey’s takes on Europe
The Hershey Company, a
quintessentially American brand, has set
out to conquer Europe as it expands into
new travel retail and domestic markets
abroad.
Amy Wilson, Team Lead Europe &
Strategy, World Travel Retail, has a very
clear strategy on the opportunities that lay
ahead. “We are going into Europe with the
four Reese’s items and then with Brookside
and the Cookies ‘n’ Cream as secondary
brands. We are very focused with the range
because we want items that are going to be
successful, and then build that partnership
with customers and grow from there.”
Mike Riemondy, Senior Marketing
Manager World Travel Retail, adds that
Hershey is getting more and more serious
about Europe. “We have a wonderful
opportunity there because it is such a
huge confectionery market, and travelers
are looking for the discovery. They don’t
see our brands in the domestic markets in
Europe so it’s a great opportunity for us,
and very exciting.”
Hershey’s has also recently hired a
new Business Manager for the domestic
market, which is primarily located in the
UK. This division will work alongside
travel retail to advertise and educate
consumers who may not be familiar with
the brand.
Europe is a high
consumption market, with
the per capita consumption
in Great Britain and Ireland
and Germany being among
the highest in the world,
and Hershey’s will strive to
differentiate itself through
unique products in the
saturated market.
“The Reese’s brand is a
very different combination of
ingredients that doesn’t exist
really in Europe. So we have
the education part, the conversion part, but
at least we have a differentiated product.
This is a nice avenue into Europe, similarly
with Brookside,” says Riemondy.
Hershey says that it is focusing first
on Reese’s and Brookside as opposed to
the Hershey brand, because they offer a
differentiated flavor.
“Not that the Hershey brand can’t
work there. Certainly the Cookies ‘n’
Cream flavor has potential, but the UK
already has a lot of pure chocolate between
Cadbury and Nestle and everybody
else, so we are looking to present those
differentiated products,” says Riemondy.
In addition to European consumers,
Hershey’s also hopes to appeal to Chinese
travelers in European airports. Hershey’s
has a strong presence with Asian travelers
in Southern Asia, Singapore, and the
Philippines, where the brand was first
introduced by the presence of the U.S.
military and has maintained a loyal fan
base. At the TFWA Singapore show In
May, Hershey’s premiered the global
launch of Hershey’s Kisses Deluxe. This
product will begin shipping in August and
is twice the size of an original Hershey’s
kiss and features a roasted hazelnut center
and crisps.
Lara Pasternak
Godiva presents new collections to the Americas
Godiva will continue to focus on
developing its Latin America and cruise
line business in 2015, both of which it sees
offering a great deal of opportunity, says
Godiva Travel Retail Regional Manager
Americas/Caribbean Diane Buchanan.
“We have an exciting program
planned for the year of high-profile
activations and in-store experiences,
enhanced by luxurious personalized
fixtures and merchandising concepts. Our
fully dedicated Travel Retail Team for the
Americas will continue to work closely with
our customers to grow the business – not just
for Godiva, but also for the confectionery
category as a whole,” notes Buchanan.
Godiva presented three new
collections to the trade during the Duty
Free Show of the Americas, which are
available now:
The Coeur Iconique Limited Edition,
containing six Godiva heart pieces in milk,
dark, and white chocolate in a keepsake
box of two neon color combination.
The new Sablés biscuits, crafted in
Belgium, in three flavor varieties: Almond
Speculoos, Pecan Chocolate Chip, and
Ultimate Chocolate. Sablés are packaged
in a box with a hot air balloon vintageinspired design to appeal to travelers.
Mousse Meringue, available in 9
and 16 piece gift boxes, features a hard
chocolate shell and meringue center,
available in chocolate, praline, lemon,
mandarin, strawberry, and coffee mousse
fillings.
Godiva will be supporting these new
collections by creating a total shopping
experience for its customers.
56
Special
5
June 201
IL
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32
th
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r Garbari
up by 4.7% ed improvement
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SUTIL’s
an
A
ay
gu
al
ru
eutr
N
th
on the U
bo
In Rivera,
in place.
The most comprehensive coverage
on the duty free and travel retail
markets in the Americas.
But you already know this.
You’re on page 57.
57
INSIDER
Paul & Shark looks to the future with domestic,
travel retail U.S. growth
With roots stretching back three
generations, Paul & Shark has traveled
far to take its place as a luxury lifestyle
brand sold throughout the world.
Originally founded as a knitting factory
in Milan in 1921, the family owned
company transformed itself with a line of
high quality yachting-inspired sportswear
made in Italy. Today, Paul & Shark
carries on its legacy with Sportswear,
Smart Casual, and Luxury collections,
and is selectively expanding throughout
the world.
And now it is coming to the
Americas. Paul & Shark is significantly
expanding its investment in the U.S.
domestic market over the next year and
believes that this will lead to new airport
retail opportunities within the country,
says Worldwide Travel Retail Director
Catherine Bonelli.
The brand is opening two new stores
this year and renovating and expanding
two others. The company opened a new
1,500 sqf boutique in the Forum Shops
in Las Vegas in Mid-April. The boutique,
created by Milan-based Takeda Katuya
Design, reflects Paul & Shark’s new
Milan showroom. At the end of 2015,
Paul & Shark will open a 1,900 sqf
boutique in the Houston Galleria.
In addition, Paul & Shark will be
extending its Rodeo Drive, Beverly Hills
store from 1,700 sqf to 2,000 sqf on the
main floor plus 700 sqf on a mezzanine.
The company expects the renovations to
be completed by September. In March,
the company expanded its store in
Aventura, Florida from 1,400 to 2,600
sqf. Paul & Shark also has a mono-brand
store on Madison Avenue, New York.
All the stores will feature new
concept interiors and storefronts of blue
undulating aluminum sheet patchwork
intended to reflect waves of water for
Paul & Shark’s yachting and sailing
heritage.
The stores are designed to attract
visitors not only from the U.S. but also
Rendering of new Paul & Shark store in the Forum Shops in Las Vegas.
China and the Middle East; the rapidly
increasing levels of visitors from these
high-spending nations bode well for Paul
& Shark’s travel retail development in
America, explains Bonelli, speaking with
TMI in Orlando at the Duty Free Show of
the Americas: “It is definitely the right
time for Paul & Shark to focus on the
U.S.; currently U.S. expansion for Paul
& Shark provides opportunities for travel
retail. [The U.S.] represents just 10% of
our global business but we consider there
is huge potential here for this ‘Made in
Italy’ luxury lifestyle brand.
58
“On this basis we are now also
exploring travel retail opportunities in
the U.S. and other parts of the Americas,
where we can find the right locations and
space,” she adds.
“Americans are becoming more and
more familiar with Paul & Shark and
this, combined with the growing increase
in Chinese, Middle Eastern and South
American visitors to the States gives us a
perfect travel retail opportunity. We also
see some special opportunities with some
Latin American operators in the right
locations.”
Lara Pasternak
vodka exceptioNNelle
FiNiSHed WitH a HiNt oF pRecioUS coGNac
l
59
37
e N J o Y R e S p o N S i B lY .
WWW.GReYGooSe.coM
June
2015
ASUTIL
Special Issue
March
2015
IAADFS/MHA
Issue
©2014 GReY GooSe, tHe GooSe device aNd tHe GReY GooSe vx tRade dReSS aRe tRadeMaRkS. SpiRit dRiNk. aBv 40% (oF WHicH vodka 95% aNd coGNac 5%). pRodU ct oF FR a N c e
60

Booming Panama thrives, resists down trend challenging most of

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