ASUTIL turns 20: Recognizing two decades of accomplishment - Duty Free …travelmarketsinsider.net/shared/images/Asutil_2014_web... · 2014. 6. 11. · 3 June 2014 ASUTIL Special

Special June 2014ASUTIL

CONFERENCEIssue

Mauro Vieira, Brazil’s Ambassador to the United States, has been eagerly awaiting the June 12 kick-off of the 2014 FIFA World Cup. “This is the largest sporting event Brazil has ever hosted,” he tells TMI’s Larry Luxner in a one-on-one interview discussing the challenges of creating the massive infrastructure needed for the Cup and upcoming Olympics, as well as for Brazil’s future. Photo by Lawrence Ruggeri

This year the travel retail industry gathers in Mexico City to commemorate 20 years since a group of competing Mercosur airport operators had the foresight to work together on matters of mutual interest and represent its region to the rest of the world. ASUTIL – now expanded in geographic scope and membership and stronger than ever – has admirably fulfilled its original mandates.

Whether as a successful lobbying organization representing industry interests to regional and global governments, or providing a forum for members to meet and work together, ASUTIL provides a critical function for its members.

Even as current ASUTIL President Enrique Urioste – the original Secretary General of the fledging association – calls 2014 a “pass through year” beset by economic slowdowns, devaluations, elections, and the chaos of hosting a global sports event, among other factors, the fundamentals for continuing growth are sound, he stresses.

Industry experts agree. The US Department of Commerce’s National Travel and Tourism Office forecasts that South America will remain a top producer of additional travelers to the United States for the next several years and that by 2018 South America will generate nearly 2.2 million more visitors, a

ASUTIL turns 20: Recognizing two decades of accomplishment

43% increase compared to 2013. IATA recently reported that

Latin America was the only region to see improvement in air passenger traffic in March, registering a 4.7% increase year-over-year, compared to a 4.2% rise the month earlier.

And, according to the latest UNWTO World Tourism

Barometer, Brazil joins China and Russia as “dynamic drivers of outbound tourism” and has entered the top ten by expenditure at tenth place, on the back of a 13% increase to US$25 billion.

Brazil continues to dominate the South American economic and travel scene,

and with the World Cup event starting this month, could impact the region even more than usual. We are very pleased to present an exclusive interview with Brazil’s Ambassador to the United States, Mauro Vieira, who gives TMI’s Larry Luxner an optimistic –some may say too optimistic – assessment of the challenges facing his country at this time.

With all these events taking place, South America’s travel retail is feeling an impact in all channels, although ASUTIL Secretary General Jose Luis Donagaray reports that mid-priced categories like electronics and accessories are taking the hardest hit. Perfumes, cosmetics and spirits sales continue to be good, he tells TMI. PRAMSA’s Eduardo Raffo also reports that confectionery sales in the border stores remain strong.

The 2014 ASUTIL Conference, with its strong slate of speakers and networking opportunities, will provide a forum for further discussion. We heartily congratulate the Board – both past and present – for creating this opportunity to meet each year, in what has become such an important part of the global travel retail industry.

Lois Pasternak, Editor/Publisher We look forward to seeing you in Mexico City.

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For more information, please contact Giles Marks, Director of Global Travel Retail at [email protected].

MJ-1855-Asutil-Ad.indd 1 5/1/14 8:39 AM

3 June 2014 ASUTIL Special Issue

INSIDER

TABLE OF CONTENTSReta i l and News Features

COVER COMMENTARY

ASUTIL turns 20: Recognizing two decades of accomplishment

News

ECLAC: Latam – Caribbean to grow by 2.7% in 2014 Page 4

ASUR 1Q traffic, revenues rise Page 4

South America fuels tourism growth to US Page 6

UNWTO on Shopping Tourism Page 6

Venezuela agrees to pay part of debt Page 6

Brazil Airports & World CupSao Paulo T3 opens Page 8

Fortaleza, Brasilia Page 8

Viracopos, Azul Page 10Corporacion America

Asuncion to privatize? Page 10

One on One with ASUTIL President Enrique Urioste Page 12 ASUTIL 2012 review in Pictures Page 14

FEATURES

London Supply expands Iguazu Page 18

One on One with ASUTIL’sSecretary General Jose Luis Donagaray Page 20

Cover Feature: One on One with Mauro Vieira, Brazil’s Ambassador to the U.S. Page 22

Hand in Hand for Haiti’sRemarkable Miracle Page 24

ON THE SUPPLY SIDE

Essence Corp.’s positive year fueled by brands and launches Page 28

Animale Sport features BrazilianMMA star “Shogun” Page 30

FFG brings on new Perry Ellis andPenguin lines Page 30

Crabtree & Evelyn: resurging brandtargets TR and Latin markets Page 32

GO TRAVEL expands in L.A., reorganizes to support growth Page 34

Selekt Brands debuts accessories from Azzaro Page 34

Maui Jim launches global campaign Page 36

Buckley Jewellery shines with TR success across region Page 37

Coty & Avon sign Brazil deal Page 38

ALTIMETRE new TR agent for Mercedes Benz Fragrances Page 38

MONARQ focuses on World Cup promotions Page 38

Bacardi launches TR exclusivewhite sipping rum Page 40

IWSR: By the Numbers Page 40

Patròn: ultra-premium can beultra-appealing Page 42

Botran accelerates in US and worldwide Page 44

DANZKA to launch in USVI Page 46

Godiva sends luxury messages Page 46

Hershey uses category strategy andconsumer insights to grow in TR Page 48

FlyinStyle adds mobile video Page 50

ASUTIL Special Issue June 2014 4

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ECLAC Predicts Latin America and the Caribbean will only grow by 2.7% in 2014

Latin American and Caribbean countries will grow an average of 2.7% in 2014 due to “limited dynamism” of the region’s principal economies, according to new projections from regional United Nations organization ECLAC released at the end of April.

The Economic Commission for Latin America and the Caribbean (ECLAC) says that the 2014 regional growth rate would be slightly higher than 2013 (2.5%), but lower than the rate forecast in December (3.2%). The group credits uncertainty and lower growth than expected for the region’s larger economies, Brazil and Mexico, which will expand by 2.3% and 3%, respectively, for the decline.

In addition, the report reduced the growth projection for Argentina (1%), which took several steps in early 2014 to counter the imbalances of recent years, causing its economy to contract. Likewise, the impact of Venezuela’s complex economic situation will result in a contraction of -0.5% there.

ECLAC says that predicted expansion levels will vary widely by country. The Updated Economic Overview forecasts that

Panama, Bolivia, Peru, Ecuador, Nicaragua and the Dominican Republic will grow at 5% or higher, while a significant number of nations will grow between 3% and 5%.

The ECLAC report says that activity indicators for developed countries -especially the United States, United Kingdom, Korea, Germany and several others from the euro zone- have shown a recovery. It cautions about the situation in China, however, one of the region’s main trade partners, which set a minimum growth goal of 7% for this year.

In addition, the demand for commodities is forecast to remain limited, especially mining and food products, which, combined with currency appreciation in developed countries, would cause commodity prices to drop modestly. The decrease would affect the economies that export these products, like those of South America.

ECLAC points out that the United States’ recovery will have a positive impact on the economies of its closest neighbors, especially Mexico and Central America, considering its importance as a trade partner. At the same time, the upturn

of developed countries will benefit the Caribbean nations, more specialized in service exports, due to better performance by the tourism sector.

Saint Kitts and Nevis will grow by 3.1%, Bahamas 2.5%, Saint Vincent and the Grenadines 2.3% and Trinidad and Tobago 2.1%, the same figure projected for the whole group of Caribbean countries.

The perspectives for the year show a global scenario with lower liquidity, a challenge in matters of macroeconomic policy and external financing for the Latin America and the Caribbean region.

As for inflation, no sharp changes are expected, but the regional average is forecast to rise due to the indexing changes in Argentina. Also, the moderate rise in prices in some countries – which nevertheless were able to maintain inflation between 3% and 6%- and the high indicators shown by Venezuela, could also impact the inflation rate. Some increases were already seen in the first two months of 2014, when average accumulated regional inflation over twelve months rose to 7.6% compared to 7.3% last December.

First Quarter 2014 traffic, revenues up at ASUR’s Mexican airports

Mexican airport group ASUR reports that for the first quarter of 2014, total passenger traffic year-over-year in the nine airports it operates in southeast Mexico was up by 6.16%, reaching 5,877,000.

Domestic passenger traffic rose by 4.85% while international passenger traffic increased by 6.90%. Cancun accounted for 4,515,600 of the total traffic.

Total revenues increased by 0.63%, reflecting increases of 3.04% in aeronautical revenues and 11.32% in non-aeronautical revenues, which were partially offset by a decline of 76.65% in construction services revenues.

Commercial revenues per passenger increased by 5.00% to Ps.77.95 (US$5.96).

Among the commercial categories, retail operations were up +14.23%, food

and beverage sales rose by +12.87% and duty free sales grew +5.36%; advertising revenues were +5.24%; car rental revenues were +17.62%; ground transportation was

+9.93%; banking and currency exchange services were +18.62%, parking lot fees were +12.4% and other revenue was +19.68%, reports the company.

Editor/Publisher: Lois R. PasternakIn Memoriam: Paul A. PasternakExecutive Editor: Michael PasternakEditorial Contributors: Larry Luxner, John Gallagher, Dori Busell, Lara Pasternak Production Coordinator & Designer: Chris Hetzer Design and Production: It’s About Time, Inc.Webmaster: Michael PasternakPrinting by The Printer’s Printer. Ft. Lauderdale, FloridaThis 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.netE-mail: [email protected], [email protected] (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.© 2014 by Pasternak Communications, Inc.


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Venezuela agrees to pay 6 airlines over debts

Venezuela’s government has reportedly agreed to pay part of approximately $4 billion that is owed to foreign airlines, in a bid to prevent more carriers from leaving the country.

Finance Minister Rodolfo Marco Torres posted news of the deal on May 26, saying that the government would pay six Latin American airlines including Colombia’s Avianca (which includes Taca) and AeroMexico to repatriate revenue from local sales in 2012 and 2013.

Bloomberg News says that Curacao’s Insel Air, Ecuador’s Tame and Aruba Airlines would also be paid for debt accumulated in 2013.

Panama’s Copa Airlines, which says it is still owed $488 million by the Venezuela government, announced it would start cutting routes to Venezuela this month.

Bloomberg reports that at least 11 carriers have cut capacity, sales or routes to Venezuela in the past year, including Air Canada which stopped flying to Caracas in March.

South America continues to fuel tourism growth to the USSouth America will remain a top

producer of additional travelers to the United States for the next several years, reports the US Department of Commerce (DOC), based on the National Travel and Tourism Office’s 2014 Spring Travel Forecast.

By 2018, the NTTO estimates that South America will generate nearly 2.2 million more visitors, a 43% increase compared to 2013. Brazil, the largest source market in the region, is expected to build on its 2013 record-breaking performance and increase 9% in 2014. By 2018 the United States could host 3.1 million Brazilian visitors, a 50% increase over 2013.

Venezuela, Argentina, and Colombia, which ranked 13, 14, and 15, respectively, in 2013, are forecast to have high but decelerating growth rates through 2018. Colombia should produce the greatest growth of 421,000 visitors (+56%), followed closely by Argentina’s additional 331,000 visitors (+48%), and Venezuela’s potential

growth of 189,000 visitors (+24%).Visitor volume to the US in 2014 is

expected to rise 3.6% to 72.2 million visitors who stay one or more nights. This growth would build on the 4.6% increase in arrivals in 2013, which resulted in a record 69.8 million visitors.

According to the current forecast, the US would see 3.4%- 4.1% annual growth rates in visitor volume over the 2014-2018 period. By 2018 this growth would produce 83.8 million visitors, a 20% increase, and more than 14 million additional visitors compared to 2013. The latest forecast produces a compound annual growth rate over the forecast period of 3.7%.

All top-20 visitor origin countries are forecast to grow from 2013 through 2018. Countries with the largest total growth percentages are China (139%), Colombia (56%), India (54%), Taiwan (52%), Brazil (50%), and Argentina (48%).

Four countries are expected to account for 59% of the projected growth from 2013

– 2018: Canada (23% of expected total growth), China (18%), Mexico (11%), and Brazil (7%). Although China and Brazil continue to get the bulk of media attention because of their consistent and very high growth rates, the traditional top origin countries will dictate actual volume growth and the ultimate accuracy of the forecast. For example, despite a small 3.0% growth rate, Canada produced a greater number of additional travelers in 2013 compared to the previous year than China and Brazil combined.

If the Spring 2014 Travel Forecast is realized through 2018, the current top-ten countries remain as such, but China will move from #7 in 2013 to #4 in 2018, while Japan, Brazil, and German all slip down one place in the ranking. Outside the top ten, Columbia, Argentina, and Venezuela would each move up in ranking by pushing Italy from #12 in 2013 to #15 in 2018. Taiwan, which re-entered the top 20 in 2013, would move up from #20 to #18.

As travel retailers have long known, shopping tourism has emerged as a growing component of the travel experience, either as a prime motivation or as one of the major activities undertaken by tourists at their destinations. A recently released UNWTO Global Report on Shopping Tourism analyzes the latest trends in shopping tourism, providing insight into key success factors for destinations aiming to develop this segment.

As part of the UNWTO Cities project, the report explores the economic impact of shopping tourism and provides an overview of strategies and priorities employed by tourism stakeholders in order to foster sustainable growth and differentiation of the tourism offer in destinations.

The report, which addresses critical areas for the tourism sector against the backdrop of public-private collaboration and partnerships, includes an interesting Case Study of Shopping Tourism in the City of São Paulo prepared in association with the Tourism Observatory of the City of São Paulo

It reads, in part: “Due to a tax system with high levies on imported goods, luxury

goods tend to be more expensive in Brazil than abroad. This has created a window of opportunity for international shopping destinations, as Brazilians increasingly reap the benefits of their rising incomes and relatively inexpensive shopping abroad. Europe in particular, with its multitude of luxury brands, has a great potential as a shopping destination within this market.

In 2012 Brazil ranked 13th worldwide in terms of international tourism expenditure, reaching US$ 22 billion.

Just as for Chinese visitors, travel motivation for Brazilians is heavily status-related and this helps to explain Brazilians’ preferred choice of destination.

Rather than purchasing in large quantities, Brazilian travelers tend to prefer the purchase of a carefully selected artefact in a high-class shop or gallery. Prior to travel Brazilians use social media heavily, discussing the best overseas shopping destinations and sharing recommendations, prices, and photos.”

Adapted from: UNWTO (2013), Understanding Brazilian Outbound Tourism – What the Brazilian Blogosphere is Saying

Shopping Tourism a prime motivation of the travel experience

UNWTO Global Report:



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Brazilian president Dilma Roussef officially inaugurated the opening São Paulo Guarulhos (GUR) airport’s new passenger Terminal 3 on Tuesday, May 20, one month ahead of the start of the 2014 FIFA World Cup taking place in Brazil this summer.

Covering an area of 192,000 sqm-- which is larger than the combined area covered by the airport’s other three terminals -- Terminal 3 initially has an annual passenger handling capacity of 12 million.

With the opening of the new terminal, the airport’s overall annual passenger capacity is approximately 42 million passengers. The new terminal is part of the airport’s $6bn expansion plan, which is aimed at increasing annual capacity to over 60 million passengers by 2022.

The new terminal was constructed by a consortium of Airports Company South Africa (ACSA), Brazilian company Invepar and the national airport authority Infraero, which won the contract to renovate the airport and manage the concession for 20 years in February 2012.

The massive project took eight thousand workers 18 months, toiling 24 hours a day in three shifts, to complete.

In September 2013, GRU announced that Dufry – the incumbent operator in

Terminals 1 and 2--would be the anchor duty free retailer in Terminal 3. Dufry has opened a 4,367 sqm arrivals shop and a 1,080 sqm departures shop in the new terminal, along with 15 designer shops in a 1,400 sqm area which will be known as GRU Avenue.

With traffic at Guarulhos reaching 35.9m passengers in 2013, the new terminal was a key priority for the consortium. Already this year, traffic has increased 14% in the first quarter, and the current terminals have been working in excess of their capacity.

After visiting the new facilities, Brazilian Aviation Minister Wellington Moreira Franco said: “The new terminal is as good as any airport in the world. We are now placing our airports in the 21st century. We are equipping our airports with the best technology to ensure the safety and the comfort of travelers. The improvements will not only be enjoyed by foreign visitors coming for the FIFA World Cup but also by Brazilians over the coming years.”

The final Terminal 3 design project was managed by the Typsa – Engecorps Group, a Hispano-Brazilian engineering consultancy. The architectural design emphasizes natural light through glass walls without the weight of frames. The structure allows for better energy savings

Sao Paulo Terminal 3 opensand a broad view of the outside aircraft apron, and optimizing internal spaces, providing a greater sense of comfort to users.

“The concept of this terminal is different from what prevails in Brazil. Here the areas are quite large, and we have planned for the rapid flow of passengers,” said Antonio Miguel Marques, president of GRU Airport.

Three airline companies, Lufthansa, Swiss and Tap, are already operating in the new terminal. Five more airlines from the Star Alliance are scheduled to come onboard before the soccer tournament begins. By September, a total of 25 airlines will be using the terminal.

ANAC, the Brazilian Civil Aviation authority, says it preferred this gradual transfer of operations to avoid operational problems during the World Cup.

The consortium will begin renovating Terminals 1 and 2 later this year. The Group says it will use the same design principles introduced in the new Terminal 3, in order to provide passengers with the same level of service. The project is scheduled to take 18 months, and is expected to be completed in the first half of 2016.

JG

Fortaleza will not be ready, but Brasilia and Sao Paulo terminals open in time

Amid speculation by aviation experts that Brazil is running out of time to complete all necessary improvements to airport terminals to handle the influx of World Cup visitors, Brazil says that all but one airport will be ready when the event kicks off on June 12. Aerolatin News reports that Minister Moreira Franco, head of the Brazilian Ministry of Civil Aviation (SAC), says that the airport in Fortaleza will end up with a temporary terminal for the World Cup.

However, Brasilia International opened its new domestic terminal in April and Sao Paulo Guarolhos’s heralded Terminal 3 opened at the end of May.

Corporacion America’s Brazilian

subsidiary Inframerica opened the 40,000 sqm South Terminal at Brasilia’s International Airport in April and the 15,000 sqm North Terminal was completed at the end of May. The US$ 600m project, completed in 15 months, will expand capacity from 16 million in 2013 to 21 million passengers/year in 2014.

In September 2013, Inframerica awarded the principal retail concession to Dufry, which has since opened a 1,600 sqm mega-store store in the domestic departures area. The store is the biggest of its kind in Brazil and will change the way retailing to domestic passengers is carried out in Brazilian airports, says the company.

According to Brazil’s official World

Brazil Airports and the World Cup

Cup website, the Brasilia airport departure lounge features ten new boarding bridges, conveyor belts to facilitate passenger access, restaurants and shops. Built over a period of 16 months, while the airport was open, the new structure is part of the R$ 1.2 billion in investments that the Inframerica Group will make until August 2014.

Quoting the Aeropuertos-de-Brasiltrabajan website, Aerolatin News said that Ministerr Franco did voice concern about the possibility of technical problems with new computerized systems and in a twitter post at the end of April reported that Galeao Airport in Rio de Janeiro has also been plagued with some recent power outages that Franco says are being addressed.



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Eurnekian to raise funds on New York Stock Exchange

Corporacion America, the Buenos Aires based holding company that controls Argentine airport manager Aeropuertos Argentinos 2000 (AA2000), is looking to raise funds on the New York Stock Exchange, according to press reports.

The diversified holding, controlled by Argentine entrepreneur Eduardo Eurnekian, has continued to grow its airport business in the first half of this year, gaining management control of Pisa and Florence International Airports in Italy in the first quarter 2014. In April, Corporacion America and its Peruvian partners Andino Investment Holding won a 40-year concession to build a new international airport at Cuzco, which will also serve the Inca heritage site at Machu Picchu.

Industry analysts say that this project will require an investment in excess of $500m.

Last month, Eurnekian told Bloomberg Business Week that he has still to decide the exact amount of money the company intends to raise. The money will be used to finance growth in the traditional core business as well as a range of diversification projects such as ecological wind farming and semi- conductors. “A first stage is opening to the market and showing the company’s will to grow,” Eurnekian said. “It’s not a cash-out situation.”

JG

Delays at Viracopos CampinasBad news from the construction site

at Viracopos – Campinas International Airport: Aeroportos do Brasil consortium has not been able to complete the new 140,000 sqm passenger terminal at the recently privatized airport on time.

In spite of an R$2 billion investment, the company now faces a potential R$ 170M fine from ANAC, the Civil Aviation Authority. The consortium has been affected by a series of delays and in recent months Health and Safety officials have stopped work in a bid to guarantee workers safety. Regular passenger flights will not be able to

use the new installations in time for the World Cup but official FIFA delegations are still scheduled to use the new Terminal for arriving in Brazil and for traveling within the country.

Once the new Terminal is operational, Swiss-based travel retailer Nuance will open a 700 sqm departures duty free store and approximately 1,900 sqm of domestic duty paid and specialty retail stores. These will be Nuance’s first stores in Latin America: they were awarded the ten-year retail concession awarded by the Aeroportos de Brasil Viracopos consortium last March.

But Azul announces boost for international trafficInternational traffic at Viracopos –

Campinas International is due for a boost following the announcement from low cost carrier AZUL that it will begin international service in early 2015. The airline has leased six second-hand A330-200s which will be delivered during the first half of next year. Azul also signed a deal to purchase five new A350-900s, which are scheduled to arrive in early 2017. Destinations have not yet been announced but New York, Fort Lauderdale and Orlando are among the favorites.

Azul CEO and founder David Neeleman commented, “Azul is the one airline that truly serves all of Brazil. With 104 destinations, Azul unites the country better than any other airline, with convenient and frequent connections which will help fill our new international services. Our customers have been asking for this and now we look forward to providing

them with our superior service on international flights, just as we have been doing today on our 880 daily domestic departures.”

After less than six years in operation, Azul already has flown more than 85 million customers and changed the face of air travel in the Brazilian market since its first flight, on Dec, 15, 2008.

Although growth in the domestic market has been dynamic Viracopos – Campinas has so far failed to attract significant international business. Portuguese airline Tap has a twice weekly service to Lisbon but the daily service to Montevideo operated by Pluna has not been replaced following the airline’s bankruptcy in July 2012. However last month, low cost carrier Gol announced three weekly flights to Miami with a layover in Santo Domingo to begin in July.

JG

Asuncion to be privatized?The on-off privatization of the

Silvio Petirossi International Airport in the Paraguayan capital Asuncion looks to be back on again. The government of President Horacio Cartes, who took power in August 2013, believes the way to improve the country’s infrastructure is via public private partnerships. Renovating the international airport is at the top of his list.

Although a number of Cartes’ predecessors over the past decade attempted to fund airport renovations through private investment, all struggled with DINAC, the Paraguayan Civil Aviation Authority, and the labor unions, over approval.

Last October, the Cortes Government

passed legislation regulating Public Private Partnerships, which gave foreign companies and equity funds a legal basis to protect their investments. Cortes and the Minister of Public Works, Ramón Jiménez Gaona, actively campaigned to include the airport in the program, as well as key highways connecting Asuncion with Ciudad del Este. Silvio Petirossi is one of the few airports in Latin America still owned and operated by the State, but the current government is open to private investment as a way to improve service and quality for travelers to and from Paraguay.

Last month, Jiménez Gaona told a group of visiting Mexican businessmen

that the government believed it would take an investment of around $200 million to construct a new terminal, and expand capacity from 1 million to 3 million passengers. The new terminal would be built on land adjacent to the current building, which would subsequently be converted into offices for DINAC.

In 2011, the local press reported that Argentine companies Corporacion America and London Supply had visited the airport to assess its investment potential. Neither company would comment on whether the new Public Private Partnership Law would entice them to take another look at the Asuncion airport.

JG


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This year—2014—will be a “pass through” year for the duty free industry in South America, according to Enrique Urioste, CEO of Uruguayan duty free operator Neutral, speaking to TMI as President of ASUTIL, the South American Duty Free Association.

The South American economies are being impacted by three main factors at the current time, says Urioste.

Factor # 1: the region’s economies’ are experiencing less growth than expected, or what they had been achieving in previous years.

Factor #2: most countries in the region are seeing a bounce back of inflation: “Not to the previous levels, it is true, but some countries, like Argentina, Uruguay and Brazil, are seeing an impact,” he notes.

Factor #3: the measures implemented by the Federal Reserve resulted in a strengthening of the US dollar which is impacting the duty free purchasing power of people in the developing economies. “People are paid in local currencies, but the duty free goods are priced in US dollars, and the stronger dollar makes the products more expensive, resulting in a smaller wallet size…”

Looking at the economy, Urioste agrees that Brazil’s recent rate of growth – which ranged between 8-9% per year during Lulu’s tenure, was perhaps not sustainable, but, he says “everyone was expecting a more in-between level of growth than the current one. To achieve a good economy we should be seeing a growth of between 3-4 % and the first quarter growth was zero. We need to see what the next numbers will be.”

[Editor’s note: Bloomberg, quoting the Central Bank, says that Brazil’s economy will expand 2% this year, down from 2.3% in 2013. And in mid-May, economists raised their estimates for Brazil’s 2014 economic growth forecast from 1.6% to 1.69% –with some estimates as low as 1-1.5% -- and lowered their inflation forecast from 6.5% to 6.39%, according to Barron’s]

But, more than the numbers

themselves, Urioste warns that the region is dealing with a combination of economic and political factors. “Brazil is facing an election year - as is Uruguay. And the social climate is strained. We also have a strange social climate because of the World Cup and all the reports of corruption that have come out. All of this is of concern to the normal citizen,” he comments.

And what happens in Brazil continues to affect the whole region.

“Despite the strength of the economies of Peru, Chile and Colombia – which are doing well – Brazil weighs very heavily. In addition, those Pacific Coast countries that signed the Free Trade agreement are really facing their economies towards Asia and the US, while Brazil and Argentina and Uruguay keep their protectionist markets that are more typical of intra-Mercosur.

“All of these factors are impacting the region’s travel retail operations which are having problems achieving growth. But as I said, 2014 is a strange year, filled with unusual components.

“We have the World Cup, which is a distortion by itself on the normal economic process of the country. We have the elections in October.”

Almost as important on the travel retail business, says Urioste, is the fact that the Southern region does not have a single long weekend in the second semester of the year:

“All five long-weekends that normally come in the second semester fall on a Sunday this year. These weekends are when regional travelers go from Buenos Aires to Sao Paulo or from Sao Paulo to Argentina or to Iguazu or drive to shop on the borders. Long weekends are a key element for our industry in these countries. This is why I am calling 2014 a ‘pass through year.’ We want it to be finished quickly.”

Urioste is expecting a better year in 2015, however.

“There will be new governments in place. The uncertainty of a new election is gone. We will be back to a normal holiday season of three or more days. I personally

Political, economic and social bumps won’t impede fundamental soundness of South America

believe that we will see the economy growing again.

Strong foundations bolster future growthDespite the “bumps” affecting the

industry this year, Urioste argues there is a key difference between what Latin America was in the past and what Latin America will be in the future or even today.

“The foundations to achieve growth are here. With few exceptions, all the countries have incorporated large numbers of consumers into the consumer segment, especially Brazil. There is a high level of credit card debt, adding 40 million consumers a year. But talking to the bankers, they say these consumers are paying back their debt and they do not expect to see this situation degrading. In other words, they do not see a drop in the consuming capacity of the population. The people now understand the credit system; they have reduced their spending and they are paying back. We expect consumption to keep growing.”

China and energy are other element to watch, he says.

“The analysts expect China to continue growing on the 7% level. China is key for Latin America and for the world. Its growth will result in a more or less sustained price in active price of commodities. In addition, Brazil is investing significantly in energy sources and this will be help them to sustain their commodity prices, which along with new drillings for gas and oil, will provide for continuous ways to achieve growth in the region.”

As for Neutral, Urioste says that the company is continuing its investment program that should end in 2015 with the opening of the Mall in Area. “We have finished stages 1 and 2, and the GAP stores are doing fantastically well,” he says. “This will be the first full year with three domestic market GAP stores open – we have two stores in Montevideo and one in Paraguay, all doing very well, in some cases exceeding our forecasts.”

One on One with ASUTIL President Enrique Urioste


2014 c o n f e r e n c e


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ASUTIL 2013


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17 June 2014 ASUTIL Special Issue 25 February/March 2011 IAADFS/MHA Issue

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The 5,000 sqm extension to London Supply’s flagship duty free store in Puerto Iguazu has been open for a little more than two months and Commercial Director Maggie Ducos reports that results to date are in line with the company’s well prepared plans.

“We opened in mid-March as scheduled and although there were a few panics we had all the new areas operational on time. So far we are very pleased with the results. We have tripled the size of the perfumes and cosmetics area, we have a specialist wine store, we have a dedicated sunglasses store and we have a really great sports shop – and that is only part of the story,” says Ducos. “Overall, we have been able to redo the entire 9,000 sqm

store and with the additional square meters we are able to give all the categories the presentation that they deserve.”

Following the 40% increase in sales reported by London Supply last year, Ducos says that for 2014, the Holy Week and Easter period proved to be a record in terms of sales and in the number of visitors.

“We had our best ever sales day in the history of the shop during the holiday season, which is great news after our strong performance last year. February was a quiet month but March got better and April was excellent,” she confirms.

Ducos says that London Supply will continue to tweak the product offer at Puerto Iguazu over the next few months. “It is still not clear whether the World Cup in

London Supply opens 5,000sqm extension at IguazuBrazil will be good for regional tourism or not. We have a strong promotional program to ensure that our average sales ticket stays high. In any case, we are sure that people will still travel to see the Iguazu Waterfalls -- one of the most important tourist attractions in the continent --and we will do our best to get all visitors to the region to come into our store.”

London Supply has successfully positioned the Iguazu flagship as a tourist attraction of its own. With the new addition and refreshed store design to offer, the company continues to sign more deals with tour operators to bring excursion tours past the duty free shop, as it works to grow the business to ever higher levels.

JG



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One on One with ASUTIL Secretary General Jose Luis Donagaray

On the occasion of ASUTIL celebrating 20 years since the Association was signed into existence in 1994, the 2014 Conference taking place in Mexico City in June will feature a special recognition for the founders, many of whom will be attending, says ASUTIL Secretary General Jose Luis Donagaray.

Business-wise, the industry executive says that the industry is waiting to see what impact the World Championship of Soccer taking place in Brazil will have on the region.

“Obviously this is a very busy time in the Americas. It is clear that Brazil is slowing down, and Argentina is suffering the effects of the big devaluation that took place in January/February, so we have the two biggest countries in the region slowing down. Their economies are not expansive

as they were last year,” Donagaray tells TMI.

One result of the devaluation is that it is more expensive for Argentineans to travel outside of the country, and duty free items are more expensive than they were previously.

“At this moment in Montevideo Airport, the people from Paraguay are spending more than the Argentineans – which is absolutely not the normal situation,” he says.

Duty free sales are also slowing down from where they had been: “Mid-price items are showing the biggest decrease, making the average ticket lower. Perfumes and cosmetics continue to sell well, as do spirits. Confectionery is also selling very well. But sales of electronics and accessories are lower.

Business slows down but is still good

Tobacco is a completely different issue,” he reports.

“When you have an historic growth rate of two digits and it falls to one digit, at the beginning the change is quite difficult,” he says. “Whenever there is a devaluation, there is a time of adjustment. But then people become accustomed to the new rate, and they start buying again.”

Donagaray sees recovery ahead for the industry. “Prices in Brazil’s domestic market have been growing, decreasing the difference between the duty free prices (which are in more expensive dollars) and the local market prices, making duty free shopping more attractive again. The business is doing well, and we are all waiting to see what will happen with the World Cup.”



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On eve of World Cup, will visitors to Brazil face infrastructure headaches? A special TMI report by Larry Luxner

When the 2014 FIFA World Cup officially kicks off June 12 at São Paulo’s futuristic Corinthians Arena, the eyes and TV screens of the world will be glued to Brazil, whose national soccer team plays Croatia in the opening match.

It’s a moment Mauro Vieira, Brazil’s ambassador to the United States, has been eagerly awaiting for years.

“This is the largest sporting event we have ever hosted,” said the ambassador, estimating that some 600,000 foreigners, including nearly 150,000 Americans, will flock to Brazil for the World Cup. The month-long tournament — which consists of 64 matches to be played across a dozen cities from Rio de Janeiro to Recife — marks the second time Brazil has hosted the World Cup. The first time was in 1950, and Uruguay won (though Brazil did snare the championship on five other occasions).

“This will allow us to showcase all the diversity Brazil has to offer,” said Ambassador Vieira, interviewed at his Washington residence. “Brazil is a melting pot. Sports and music are part of our identity, and I think it’s the right moment and the right occasion to celebrate.”

Yet millions of Brazilians won’t be celebrating. The estimated $11.5 billon Brazil is spending on the games has infuriated people throughout a country that’s struggling with a stagnant economy, violent crime, high taxes and inadequate public services.

In mid-May, police dispersed thousands of demonstrators with tear gas after violent anti-World Cup protests broke out in Rio, São Paulo, Recife and other cities.

Widespread media reports of fraudulent billing, kickbacks and outright bribery bring to mind the Russian corruption scandals associated with the Sochi Winter Olympics earlier this year. A survey by local polling institute Datafolha showed that 55 percent of respondents believe the World Cup will bring “more losses than benefits to Brazilians in general, and that the percentage of Brazilians in favor of hosting the tournament has fallen steadily, from 79 percent in late 2008 to just 48 percent now.

FIFA has made no secret of its view that Brazil could have done a better job preparing for the games, which return to South America for the first time since 1978.

São Paulo’s $425 million Corinthians Arena, which has been expanded to accommodate 65,000, is expensive, late and within sight of a makeshift tent city set up by protesters who claim they’ve been made homeless by the neighborhood’s rising rents.

Even worse is the Mane Garrincha stadium in Brasília, whose construction cost has nearly tripled to $900 million in public funds, making it the world’s second-most expensive soccer arena — even though the capital city has no major professional team. Auditors allege that up to one-third of that $900 million consists of fraudulent billing.

Complicating matters, eight workers have so far died in accidents during the building of Brazil’s 12 World Cup arenas. And this is nothing compared to the chaotic efforts being expended to ready Rio for the 2016 Summer Olympics, which will cost untold tens of billions of dollars.

Then there is the question whether international visitors will even be able to attend the games.

The new 47-acre passenger terminal at São Paulo’s Guarulhos International Airport opened May 11 with only 32 days to spare before the World Cup itself. According to published reports, the airport’s new Terminal 3 will handle only a fraction of the international airlines it originally promised; after the event, 21 airlines will move into Terminal 3, which has a capacity for 12 million passengers a year.

Overhauls at other major Brazilian airports are running way behind schedule — including those of Brasília and Fortaleza — though Vieira pointed with pride to 45 new urban transport projects in the 12 World Cup host cities as well as “a huge new expressway being built from the airport in Rio to the place where the Olympic villa is being built” for the 2016 Summer Games.

“There’s a sense that the World Cup is a major test for Brazil,” said Michael

Shifter, president of Inter-American Dialogue, a Washington think tank. “Under normal circumstances, this would be a time of great joy and celebration. Instead, there’s a sour mood, because the country is facing lots of economic problems, corruption and concerns about the quality of public services. There seems to be a perception among many Brazilians that the government’s priorities are misplaced. They wonder why so much money is being spent on these Potemkin villages when basic needs are not being met.”

The barrage of negative headlines is a stark reversal of fortune for Brazil, a nation of 200 million whose economy blossomed under former President Luiz Inácio Lula da Silva — lifting tens of millions of Brazilians out of poverty — but has since cooled under Lula’s successor, Dilma Rousseff.

Ambassador Vieira doesn’t see things that way — at least not publicly.

“The economy has not slowed down. It’s just not growing at the rates we had until 2010. This was two years after the financial crisis of Brazil,” he said. “Brazil had 7.5 percent GDP growth when most countries around the world had negative rates. We never had a crisis or depression. One year, we grew just 0.1 percent, but we never receded.”

The ambassador reeled off statistics to back up his claim. Unemployment is only 4.9 percent, he pointed out. The United States is still the largest single foreign investor in Brazil ($14 billion out of a total $62 billion in FDI last year), and Brazil today accounts for 3.4 percent of the world economy, up from 1.4 percent in 2000. Today, more than 100 million Brazilians are middle-income earners.

However, this unbridled optimism doesn’t always square with reality — and the reality for millions of ordinary Brazilians is that the country simply cannot afford one, let alone two, world-class sporting events when their own economic house is not in order.

Tom Vogel, a former Wall Street Journal bureau chief in South America, has written about the region for more than 20 years.

One on One with Mauro Vieira, Brazil’s ambassador to the United States


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“A growing number of Brazilian politicians have pivoted from unreserved chest-thumping pride about the country hosting the 2014 World Cup and the 2016 Summer Olympics to a more cautious, even critical, stance,” said Vogel, who now runs Rachlan, a New York-based strategic communications firm. “One can track the start of this shift to nationwide protests last year against the rising cost of public transportation. These demonstrations grew and quickly tapped into a vein of discontent among Brazilians, particularly those from the lower middle class and below, about their country’s socioeconomic policies, corruption and the spending of billions of dollars to create facilities and other infrastructure” to host the 2014 and 2016 events.

But Ambassador Vieira has a different view.

“There were some protests last year which were not connected with the World Cup — different groups protesting for better infrastructure — but I think this World Cup will produce huge benefits for Brazil. The government has partnered with the local sector to build six new stadiums and to renovate six others, including Maracanã [in Rio de Janeiro], as well as

all the new airport developments. This is a legacy that will stay.”

“One lesson we can learn from previous World Cups is that you must work hard in organization and security to promote a joyful event,” he said, adding that the government is well prepared in terms of security, and has established 14 new integrated control-and-command centers in each city hosting events and that 170,000 police officers will be on hand to ensure security for the duration of the event. “Brazil … never had any kind of terrorism and we love to receive foreigners.”

Yet violent crime in the country’s largest cities has reached critical levels. During the first three months of 2014, Rio alone reported 1,459 homicides — a 22 percent increase compared to January-March 2013. The incidence of street robberies jumped even higher, by 46.2 percent.

In early April, about 2,000 soldiers raided the Rio de Janeiro shantytown of Mare using helicopters and armored personnel carriers, and troops will remain in Mare until the end of July, after which a Police Pacification Unit (UPP in Portuguese) will be established there.

Authorities have created 37 such UPPs since the program began in 2008.

Eduarda La Rocque, head of the Instituto Pereira Passos — Rio’s municipal planning agency —said the UPPs will help keep the city safe for both residents and the tens of thousands of tourists who will flock to Brazil for the international soccer.

La Rocque said municipal officials have invested $7.8 billion in transportation projects and enhancement of existing infrastructure with an eye towards both the World Cup and the 2016 Olympics.

“The World Cup is right around the corner, but our focus is sustaining a permanent legacy for the citizens — more even than organizing the event itself,” she said.

Rio de Janeiro has 6.32 million inhabitants, of whom nearly 1.39 million — or 22 percent of the population — live in favelas.

“We don’t just want to inaugurate things. I’m certain that by 2020, when we look back at the data, we’ll find that living conditions are substantially better,” she said. “We must continue to attack inequality and stimulate investment. We already have the information. We know what needs to be done.”


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A little more than four years after Haiti was struck by a devastating earthquake in January 2010 – and three years after opening its door for the first day of school in October 2011 – the Lycée Jean-Baptiste Pointe du Sable, in Pont Leocan, near the city of Saint Marc, Haiti,

received recognition from the highest levels of the country when President of Haiti, Michel Martelly and his wife, Sophia Martelly, officially inaugurated the incredible school and Dubai Duty Free Sports Complex on Saturday, May 17.

The Lycée Jean-Baptiste Pointe du Sable is the remarkable creation of the Hand in Hand for Haiti Foundation and built with the assistance of extraordinary support from the travel retail industry worldwide.

HIHH was founded by Estée Lauder Travel Retail Worldwide President Olivier Bottrie, former DFS Group President and CEO Ed Brennan, and The Moodie Report Chairman Martin Moodie as a humanitarian response to the earthquake. (DFASS Founder and President Benny Klepach joined the Board of HIHH in Spring of 2013). The Foundation was incorporated in the United States less than three weeks after the tragedy struck the country, already the poorest nation in the Western Hemisphere.

The vision of Hand in Hand for Haiti was to build a sustainable hurricane-proof and anti-seismic school complex for the country’s neediest children. With a goal of

delivering the highest academic standards aligned to the Haitian curriculum -- classes are taught in French and English, along with Creole, from the nursery level – the founders knew they must do more than just build a school, they must provide ways to ensure long-term financing and management.

The school opened its doors in October 2011 – one of the first and only post-earthquake construction projects to reach completion – welcoming 153 three-, four- and five-year-old children. Fifty three-year old students are to be added each year. As of September 2014 the school will have 300 students over 12 classes from pre-kindergarten to third grade. By 2024, the plan is to have 16 sections covering nursery to baccalaureate levels, with a capacity of 720 students.

From the beginning, the HIHH founders understood the importance of incorporating sports into the school curriculum, declaring sports as one of the “school pillars to foster individual and collective talent.”

To this end, the inauguration ceremony also celebrated the opening of the Dubai Duty Free Sports Complex

HAND IN HAND FOR HAITI’S REMARKABLE MIRACLE

Haitian President Martelly inaugurates the Lycée Jean-Baptiste Pointe du Sable & Dubai Duty Free Sports Complex

Haiti’s President, Michel Martelly (in yellow shirt) and his wife Sophia Martelly with Estee Lauder Companies’ Olivier Bottrie and other Hand in Hand for Haiti Board members, and students from the school.

Estee Lauder Companies’ Olivier Bottrie gave an impassioned speech opening the Lycée Jean-Baptiste Pointe du Sable and the inaugural program at the $1.5 million Dubai Duty Free Sports Complex.

A Travel Markets Insider Special Report by Lois Pasternak in Haiti. Photos courtesy of Onboard Media


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— a $1.5 million facility featuring an international regulation soccer pitch with artificial turf, a basketball court, two volleyball courts and 400-meter six-lane running track. Parts of the complex were literally carved out of the cliff side adjacent to the school.

Dubai Duty Free, already a contributor to Hand in Hand for Haiti, in February 2012 provided a major donation of US$500,000 from its Foundation towards the construction of the sports complex.

The Inauguration Ceremony celebrated the school and the sports complex with an exhibition soccer match between the Haitian team of President Martelly and a guest team that featured players from France and the US, among others, including Wagneau Eloi, former head coach of the Haitian National team.

President Martelly visited with the children prior to the start of the game, after which time he voiced his full support, saying that “access to education is essential to the future of Haiti.”

Estee Lauder Companies’ Olivier Bottrie gave an impassioned speech opening the inaugural program, describing the school as being “a blueprint for education in Haiti” and underlined his faith in the country’s future.

“Education will lead to a new generation of Haitians – civically responsible, open to the world and applied to the good of their country be it economic, political, social or humanitarian.”

In his speech Bottrie also thanked Dubai Duty Free for its major investment.

Commenting on the official opening of the Dubai Duty Free Sports Complex in a statement, Colm McLoughlin, Executive Vice Chairman said: “Hand in Hand for Haiti has done a tremendous job in driving forward the phased opening of the Lycée and the completion of the Dubai Duty Free Sports Complex in a short space of time in a challenging environment.

“We are very proud to have been part of this project which will enrich the lives of young people living here and will encourage their interest in sport. My congratulations to all of those involved in the Hand in Hand for Haiti initiative, especially Olivier Bottrie, Ed Brennan, Benny Klepach and Martin Moodie, who have worked tirelessly in recent years to see these projects come to fruition.”

As part of its commitment to be an active participant in the community at large, the sports complex will also be opened to other schools in the surrounding area. In other community endeavors, the Lycée currently provides 80 local

jobs – and is the largest employer in Saint-Marc – with plans to employ a total of 120 by 2023. It also has established local procurement of food supplies, and has started a community garden, with a buy-back program of the fruits picked on the school land. Future plans call for the training of local teachers and other vocational training programs in coordination with local corporations.

Students, meanwhile, receive two nutritious meals a day, 261 days a year, and attend daily after-school programs and day camps during the Easter and Summer breaks. They also receive health and preventative care.

The school continues to be a work in progress, with new classrooms and other buildings and services regularly coming on line: teacher housing, a library, music room and computer room are already built and in use, and an art room will be completed by 2016.

The travel retail industry has been a major contributor to the Hand in Hand for Haiti project, which has raised many millions of dollars since the January 2010 earthquake. It is the biggest charity fund-raiser in travel retail industry history. Since its creation, the Women in Travel networking group has dedicated the fundraising efforts of the Orlando meeting to the Foundation, which receives a significant amount from Starboard Cruise Services and Onboard Media, DFS Group, DFASS and The Estee Lauder Companies, among others.

Representatives from the Dubai Duty Free Foundation, the Estée Lauder Companies, DFASS, Starboard Cruise Services, Onboard Media, The Moodie Report and Travel Markets Insider were among the celebrants attending the ceremonies.

For more information, or to make a donation, please visit www.HandinHandforHaiti.com.

Right: Bottrie and Haiti’s President Michel Martelly pose with the competing Soccer teams that played the inaugural game. Left: A patriotic show of flags from the students at the inauguration

The $1.5m Dubai Duty Free complex features an international regulation soccer pitch with artificial turf, a basketball court, two volley-ball courts and 400-meter six-lane running track. Parts of the complex were literally carved out of the adjacent cliff.

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Essence Corp.’s Executive Director, Marketing Gabi Medeiros Humbles reports that business has been very positive this year and the company is expecting a good summer, fueled by many appealing new launches.

Among the highlights to date was the re-introduction of the luxury Dunhhill fragrances, which Inter Parfums took over from P&G in April 2013. Essence Corp. works very closely with Inter Parfums.

“The orders just flew out of the warehouse, especially in the Caribbean. Our clients had not forgotten the brand, which had been unavailable for a time.”

Medeiros Humbles reports that customers were ordering the trio of Dunhhill Desire fragrances -- the Red, the Blue and new Desire Black, which launched this year. A completely new Dunhill will be coming out later in 2014, she says.

One of the main launches for the second half of the year is the new men’s fragrance Montblanc Emblem, which will begin rolling out in June in the Americas, where it will be featured in key cruise

ships, airports and

border stores throughout the region. A new fragrance from Burberry will also launch later this year. Burberry is also debuting its new makeup line in very select distribution.

Versace’s sensual new floral feminine fragrance, Bright Crystal Absolu Eau de Parfum, which is still rolling out from its April launch, is another major project this year. The glamorous new edition to the Versace line-up will be in all the Dufry stores in Puerto Rico, Brazil and the Caribbean in June, says Medeiros Humbles, rolling out to London Supply in Argentina and Bright Star in Paraguay later in the summer, among others.

Major HPPs also took place with three leading retailers in the Caribbean: Kirk Freeport’s La Perfumerie I in Grand

Cayman, Vanity First in St. Maarten, and Penha St. Maarten.

The Burberry Brit Rhythm fragrances for men and women were launched throughout the Americas during the first semester, to very good response, with Brazil and Central America rolling out now, reports Leidys Tobenas, Burberry Brand Manager at Essence Corp. These fragrances take their cue from music, a personal passion of Burberry chief creative officer and chief executive officer Christopher Bailey, and he’s steadily integrated it into the brand’s DNA. Bailey has said that Burberry Rhythm “is aiming to capture the emotion, excitement and attitude attached to live music. It’s really that kind of adrenaline feeling that you get from music. … It’s a sexy fragrance because I think there is a sexiness to that kind of rock n’ roll world.”

In related news, Burberry has also begun producing makeup and is opening its

Essence Corp. reports positive business fueled by brands and launches

first Travel Retail counter in the Americas in Sao Paulo Guarulhos Airport’s new Terminal 3 this summer.

The Karl Lagerfeld Parfums masterbrand, another newer addition to the Inter Parfums Group, was launched in La Riviera Panama at Tocumen Aiport in March, and rolled out to La Riviera stores in Bogota, Guatemala and El Salvador in May. The brand will also be introduced in Mexico Quintana Roo during the second semester.

The two new signature fragrances – Karl Lagerfeld’s Eau de Parfum for women, an elegant green floral, and the Eau de Toilette for men, an ultra-modern aromatic -- echo Karl Lagerfeld edgy style while conveying sophisticated elegance with a modern twist, reports Brand Manager Melissa Jubera.

Following the recent launch of Jimmy Choo Flash, Essence Corp. is now introducing the special Edition “London Club” at Dufry. Based around a bouquet of white flowers, the fragrance captures the glamour and excitement of London’s hedonistic nightlife.

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Falic Fashion Group’s Perry Ellis fragrances, working closely with the All-American style Perry Ellis fashion house, has launched a new men’s fragrance, Perry Ellis Cobalt, exclusively in Macy’s in the US in May. It will roll out further in the US and internationally in August.

The fresh, oriental scent for men features a witty lifestyle campaign photographed by Daniel Jackson and featuring model Mikus Lasmaris. The image will be featured in June/July national magazines including GQ, Details, Esquire, T Magazine (NY Times), and Men’s Fitness along with a robust OOH, digital and social media marketing program.

“Perry Ellis is continually growing in

popularity. The brand currently has more than 800,000 likes on Facebook,” says FFG Brand Manager Scott Berg. “The fragrance campaigns use the Perry Ellis models and evoke a casual humor, style, and levity that is eye-catching, memorable, and Very Perry.”

Berg says that the brand sells very well in Mexico, Panama and Colombia, as well as the U.S. in this region.

The Cobalt bottle, like the very successful signature Perry Ellis fragrance launched last year, is inspired by the signature Perry Ellis “dot.” Whereas the original edition features an ink-colored metal case encircling a teal glass bottle that allowed the fragrance to be visible, the

FFG introduces new Perry Ellis and Penguin fragrances

Cobalt bottle sports a silver metallic shell encompassing a ‘dot’ of glass, this time in cobalt blue.

In the more accessible Perry Ellis 360 collections, FFG has launched two new fragrances for women, designed to be young and colorful: 360 Purple, which bowed last year, is now available in Liverpool in Mexico, where Berg reports that it is a “top 10 fragrance in all the stores.”

Coming next is Perry Ellis 360 Coral, described as flirty, feminine and playful, with fruity top notes, a heart of white jasmine, peony and lily of the valley, and a base of amber, cashmere woods, tonka and musks.

For Penguin , another fashion brand under the Perry Ellis International umbrella, FFG is launching Nightcap, the fourth scent in the exclusive Original Penguin men’s fragrance collection, following Original Penguin, Rocks, and Reserve.

Nightcap, a subtly spicy fragrance with woody undertones, projects the idea of nightfall to the morning-after by using shaded black-to-grey glass tinting on the bottle. Nightcap launched in U.S. department stores in February. Berg reports that an entirely new Penguin fragrance line will be introduced in 2015.

Animale Fragrances, one of the two fragrance subsidiaries of Duty Free Americas, is making a concerted push for the Brazilian consumer this year with its upcoming launch of Animale Sport.

Animale Sport, shipping now to be available later this year, features Brazilian mixed martial arts star Mauricio “Shogun” Rua, one of the biggest names in MMA, as the face of the men’s scent in the advertising visuals.

A clean, citrus marine fragrance with bergamot, pear and sea mist blended with blonde woods, vetiver, musk and amber, Animale Sport is presented in the iconic Animale bottle in striking blue. The fragrance launch will be enhanced with a GWP soccer ball, perfect for the World Cup

fever flooding Brazil and the rest of Latin America this year.

Animale Sport is one of four new Animale fragrances introduced this year. Love by Animale, a seductive sparkling fruity-floral for women, was unveiled in Orlando at the Duty Free Show, along with new Masterbrand Animal Intense, comprising a fruity marine fougere for men and an exotic floral with Japanese plum, jasmine, hibiscus, patchouli and vanilla absolute for women.

“We have very loyal customers for Animale in Brazil and we expect the latest edition in the Animale range, Animale Sport, to be very well received,” Brand Manager Scott Berg tells TMI.

New Animale Sport features Brazilian MMA star “Shogun”


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Crabtree & Evelyn was arguably the most impressive new brand at the 2014 Duty Free Show of the Americas in March, dominating the back wall of the Beauty room trade floor with an elegant, professional storefront display that would have been at home on any high street.

From a small, family-run business founded in 1972 by Cyrus Harvey in Massachusetts, Crabtree & Evelyn today is an international brand sold in 5,000 locations in 65 countries. Its product range runs the gamut from fragrances, bath and shower gels, soaps, home spa products, body lotions, and hand creams, to home fragrance, gifts and even food. The company had 40 award winning products in 2013 alone.

And now the beautiful products are gaining a presence in travel retail. In the Americas, a 3-person team with impeccable experience plans to expand the business into new markets with hopes of transforming it into a travel retail staple.

“The brand is in resurgence, and doing double what we expected,” explains JuanCarlos Delgado, Managing Director, Latin America and Caribbean, who joined the company from a similar position at luxury house Cartier. Delgado has been joined by Diego Aleman, Director of Sales, formerly with Remy Cointreau Travel Retail and Estee Lauder; and Catherine Habermann, Sales and Marketing, whose background includes L’Oreal and Chanel.

“Travel retail is a new frontier for Crabtree & Evelyn. Our greatest ambition

is to develop the travel retail market in the Americas, as well as local markets Mexico and Brazil,” says Delgado, adding that a presence in Miami Airport is critical: “Miami is the main reference.”

Explaining that Crabtree & Evelyn has “been a little shy over the past two decades,” the brand is now aggressively relaunching itself with an updated look for both its co-owned stores and other points of sale, including travel retail.

“The three of us have had the pleasure of designing the first fixtures for travel retail worldwide,” Delgado tells TMI.

“We have created a range of personalized gondolas, back walls and counter top displays. A re-design of store will follow,” he says.

Although an American company, Crabtree & Evelyn has been able to capitalize on its consumer perception as a classical English brand. Its accessible pricing is another plus, with most products in the $20-$40 range, and positioned 10% less than US price in travel retail.

“The brand is so wonderful for gifting, with the sets coming in gorgeous boxes,” says Catherine Habermann. The company’s Hand Therapy products and triple-milled soaps remain the top references in North America. The new team has created an entire collection of special TR sets, including collections of 2, 4, 6, and 8 tubes of Hand Therapy, his and her fragrance duos, and shower gel sets. They are giving special attention to inflight and creating amenities sets for hotels and business class travel.

Resurging Crabtree & Evelyn targets travel retail with its elegant portfolio

Crabtree & Evelyn has a range of really exciting new products launching, including an expanding selection of men’s collections. The most recent additions, Indian Sandalwood and Moroccan Myrrh, launched in May, joining the West Indian Lime line, which won a Fragrance Foundation award in 2013. The men’s collections include soaps, after shave balms, hair and body wash, and cologne.

“There is a great story behind each scent, and the packaging is very rich. The creams even come with a logo key that allows you to roll the tube up from the bottom,” says Habermann.

Crabtree & Evelyn’s classical collections include such scent families as Verbena, its best known La Source, Gardeners, Florals such as Lavender and Rosewater – “all made using carefully selected botanicals, which is core to the brand”—as well as gourmet sounding Avocado, with Olive & Basil; Citron, with Honey & Coriander; Pomegranate, with Argan & Grapeseed; Tarocco Orange, with Eucalyptus & Sage; and Verbena and Lavender de Provence. There are TR exclusive sets available in each of these scent families.

The English Honey & Peach Blossom collection and Pear and Pink Magnolia were added this March, followed by Caribbean Island Wild Flowers in April.

“These wonderful fragrances are all true to their names. In Travel Retail, we have 150 SKUs to choose from. We understand the need for flexibility,” says Habermann.

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Travel accessories company Design Go Ltd. reports that it is enjoying another record year in Latin America with its Go Travel line, particularly now that it has established a Latin American division through its US base in Boca Raton, Florida and appointed Les Roner-Hansen as vice president of sales for the region.

A seasoned professional in both the Latin American and Duty Free market, Roner-Hansen comes to Design Go with 16 year’s experience at international fragrance company Parlux, where she worked with such brands as

Jessica Simpson and Paris Hilton. Most recently, Roner-Hansen was Director of Purchasing and Budgeting for duty free retail operator DFASS.

Roner-Hansen’s in-house appointment marks a departure for Design Go in this territory, which was previously handled by an outside distributor, Innova Distributors Inc.

Speaking recently with TMI, Roner-Hansen – just four months into the new position – says that she is still learning the category and getting to know the industry, which is quite different than the perfumes and cosmetics she previously handled. She is also giving new attention to local Latin American market expansion, along with the travel retail venues.

“While our product’s best fit are duty free and duty paid locations, I am increasingly promoting the local market for our products. We recognize the great potential in Latin America for our products in big and small stores, pharmacies, corporate sales and loyalty programs, supermarkets, government, kids stores, sports stores, hotels, travel agencies, office supplies stores, airlines, you name it. All this is accomplished by our unique, quality products, excellent logistics and the backing of our head offices in London. And the concept is our best seller: more profit per square footage/meter,” she explains.

Roner-Hansen reports that the company has great plans for expansion in existing territories, as well as opening new ones. She is also working with several new airports at the moment.

“One of our biggest expansions has been the roll out of Travel Go accessories with Farmacias Arrocha in Panama, and the opening of about six more channels of distribution within that country.

“In Chile, we became a loyalty partner with Banco BCI in Chile, participating in the Correos de Chile pilot plan where our products are sold along with tourism materials at about 100 post offices in this country. We also opened two points of sale at SCL Santiago Airport. And in Punta Cana, we expanded distribution into more luxury hotels.

“All this has been done through our distributors in these locations in recent months and these are just a few of our new openings,” she notes.

Go Travel expanding rapidly in Latin America:Reorganizes its Latin American operations to support growth

Design Go Ltd President David Lomas says that he sees Roner-Hansen’s appointment as a vital step forward in the region, bolstering the fast expansion the company has experienced over the last few years.

“[With her] on-the-ground experience, coupled with an incredible pedigree and an enormous respect in the industry, she is excellently placed to propel the brand and help realize our ambitious plans over the next 5 years,” says Lomas.

Adds Roner-Hansen: “I am hoping to get to know more fellow travel retail operators during ASUTIL that I have not had the chance to meet yet and show them what we have to offer.”

Among the new additions to the Go Travel portfolio, which are now sold in more than 150 countries worldwide, are the Memory Foam Sit-on Cushion, that instantly transforms hard, uncomfortable plane or train seats into soft, supportive structures; a new ultra-compact, slimline Power Bank range available in Single and Double size models, that provides emergency back-up to charge electronic devices when you are on the go; the Birthday Lock, with a patent-pending mechanism that allows travelers to set dials to a memorable date, and a new, high-powered Mini Floodlight with the latest LED technology.

Selekt appointed exclusive commercial agent for Azzaro accessories in the Americas travel retail and domestic markets

Miami based agent Selekt has announced its new collaboration with Azzaro accessories for men. Azzaro is already a well-established fashion brand in Europe, Asia, and Middle East and with this new partnership is looking to enter and become an important player in the Americas travel retail and domestic markets, with its accessories line. Azzaro’s

range of products for accessories includes small leather goods, computer bags, messenger bags and belts.

Selekt brings together selective brands with premium retailers, representing brands in the categories of accessories, high-end eyewear and skincare. Selekt’s brand portfolio includes Azzaro accessories for men, Zeades jewelry, watches and

accessories, 3LAB skincare, RVS and POV eyewear.

Selekt will be attending the upcoming ASUTIL conference in Mexico City from June 4 to June 6 to present its brand portfolio and products.

For more information please contact Nadia Stamboul at [email protected] and visit www.selektbrands.com

35 June 2014 ASUTIL Special Issuewww.zeades.com

ZEADES-AD-cote-mer2014.indd 2 13/05/14 10:52

Represented in the Americas by SELEKT, please contact Nadia Stamboul at [email protected]


INSIDER

Sunglasses supplier Maui Jim, Inc. -- best known for its premium polarized sunglasses that “let you see the world in clear spectacular colors” --is supporting the brand with a multi-million dollar integrated marketing campaign focusing on the enhanced color, clarity, and detail that can be seen through Maui Jim lenses rather than on how people see the wearer.

Under the theme “Like You’ve Never Seen,” the campaign illustrates the unique benefits of Maui Jim’s patented PolarizedPlus2® lens technology that cuts glare and UV rays, maximizing the usable light from the sun, significantly boosting color, and improving definition and depth perception.

The fully-integrated global assignment – a first for the brand-- includes brand strategy, advertising, media buying and planning, search, social media and public relations.

The campaign visually demonstrates the new theme line with stunning photography shot by internationally renowned photographer, Nadav Kander.

In print ads now running in many top magazines, vibrant images of turtles, flowers and Hawaiian scenery graphically form the shapes of Maui Jim’s sunglasses to evoke what the world will look like while wearing Maui Jims. The campaign also uses television spots, social media and online advertising, retail, and sponsored events.

“Maui Jim began by selling sunglasses on the beach in Lahaina, seeing a need for eyewear that could combat intense glare and harmful UV rays while bringing brilliant island colors to life,” said Maui Jim VP Global Marketing Jay Black. “We’ve since become the fastest growing polarized sunglass company in the world by leading the industry in patented lens technology and deepening relationships with our cult following of sunglass wearers.”

Maui Jim Director Global Travel Retail Giles Marks tells TMI that the campaign will also include airport advertising in such locations as Miami, Denver and New York JFK.

All Maui Jim lenses are packed with up to nine layers of patented PolarizedPlus2® lens technology that has received the Seal of Recommendation from The Skin Cancer Foundation because the technology cuts 99.9 percent of glare and eliminates 100 percent of UVA and UVB rays, an important part of an effective defense program against skin cancers of the eye and eyelids.

A distinguishing feature of all Maui Jim lenses is the rich and vibrant color that you see, with colors that are pure and true. MauiPure lenses also are protected with coatings to shed water and snow and to repel grease and smudges.

Maui Jim launches global marketing campaign

Maui Jims Legends in Tokyo tortoise


INSIDER

Buckley Jewellery Ltd (BOUTON, Buckley and Attwood & Sawyer), which has opened over 50 doors this past year via Katherine Sleipnes’ IBBI, continues its rapid expansion, focusing on airports, borders, downtown and cruise lines across the Americas.

Buckley London in particular continues to be a top performer within the inflight magazines of 18 major North and South American airlines with a combination of classic and new designs, including the award winning Russian Trio Collection and I Love You bracelet. The brand is currently sold globally on 139 airlines.

“Retailers who test our brands generally expand to multiple doors when they experience the high rates of sell through,” explained Buckley Sales and Marketing Director Neil Thompson, who will be attending the ASUTIL Conference with Sleipnes.

“The strong product design and class leading quality, coupled with excellent price points have been a winning proposition that has helped Buckley London, Attwood & Sawyer and BOUTON excel above its competition. Such has been the success of the new 2014 collections that the brands are not only opening multiple new doors, but also experiencing double digit growth across existing accounts with whom we have been trading for many years,” Thompson explains.

Across the Americas, Buckley Jewellery Ltd continues to roll out to the Caribbean Islands including Bermuda, Barbados, Dominican Republic and St Martin. It is also in the final stages of launching into a large American-based cruise operator as well as a Panama based distributor to cover the duty free business of Central America.

For more information, contact [email protected]

Buckley Jewellery shines with TR success across the region


INSIDER

Liquor distribution and marketing company MONARQ Group, following its “best year ever” in 2013, is focusing on the implementation of its new brands and World Cup specific promotions throughout the region, says MONARQ Managing Director/Owner Robert de Monchy.

MONARQ added Ole Smoky and Teeling Whiskey to its portfolio before the IAADFS Orlando show in March, and

has now filled another gap in its porfolio with a new grappa.

“We have added ‘Nonino’ from Italy, the famous icon brand of Grappa, especially known for its superior quality, its single varietal grappas and also for its Amaro,” says de Monchy.

Since adding the two new brands, de Monchy reports that Teeling Whiskey and Old Smoky are “doing extremely well.”

“The Irish Whiskey category is growing everywhere and Teeling is well positioned to take its share because of its high quality and attractive packaging. Also, there is high demand for Teeling’s special releases of aged whisky. We have strong interest in the brand and are currently in the process of introducing the brand to a number of duty free operators,” he says. “Ole Smoky is taking off like a rocket. We now have the brand in distribution in about 10 markets in the Caribbean and are in advanced talks with a number of duty free operators in the Americas.”

With the World Cup bringing the world’s spotlight to Brazil, MONARQ is running special football promotions for many of its brands in the region.

MONARQ adds new brands, focuses on World Cup promotions “We are organizing a number of

special promotions around Cachaca 51 - the typical spirit of Brazil and the worldwide leader of the category. With Heineken we are involved in football through the UEFA Champion’s League and are currently running a promotion in the region. We are expanding the Heineken portfolio in the region with a focus on some excellent brands; Desperados, Sol and Amstel Radler.”

MONARQ also ran a special sampling and tasting program with sorbet machines to promote Limoncello di Capri with London Supply in May and will be expanding the program through Kraudal on the Uruguay - Brazil border during the year.

“Besides that we are, amongst others, running DF retail promotions through a number of independent DF retailers and Kraudal in the Caribbean, respectively Uruguay, with Crystal Head Vodka, Neutral with FRUTTA Winespirit and Casa Noble and Shopping China with Heineken.”

De Monchy says MONARQ will soon be revealing a special distribution deal and an organizational update.

MONARQ ran a special sampling and tasting program with sorbet machines to promote Limoncello di Capri with London Supply in May.

Coty Inc. and Avon Products, Inc. sign an agreement for Brazil

In an agreement designed to increase Coty’s footprint in one of the world’s largest fragrance markets and bolster Avon’s product offering in Brazil, Coty Inc. and Avon Products, Inc. have entered into a partnership by which select Coty fragrances will be marketed and sold through Avon Brazil’s network of 1.5 million independent sales representatives.

Brazil, Avon’s largest market, is also the largest fragrance market globally. The deal brings together Avon’s extensive network of Representatives in Brazil and Coty’s portfolio of celebrity and lifestyle fragrance brands in an effort to increase both companies’ global fragrance market share, consumer loyalty and brand appeal in Brazil, said the official announcement.

“This commercial partnership allows Coty to expand its geographical reach and strengthen our footprint in the emerging markets, with Brazil being a key driver in our growth strategy,” said Renato Semerari, President, Coty Beauty. “Avon’s extensive experience in Brazil makes the company an ideal partner, and we look forward to working together.”

“We are pleased to enter into this marketing arrangement with Coty as part of our growth strategy in Brazil,” said David Legher, President, Avon Brazil. “Coty’s celebrity and lifestyle fragrances further expand our portfolio of high quality fragrances here, which will help our Representatives increase their earnings and reach a broader consumer base.”

ALTIMETRE, the new company formed by industry veteran Arnaud de Volontat, has signed an agency agreement to represent The Mercedes Benz Fragrances for Travel Retail Americas and the Caribbean, starting June 1st 2014.

The agreement also covers key accounts, including DFS, Dufry, WDFG and DFA, which will be handled by ALTIMETRE on a global basis.

De Volontat tells TMI that the agreement covers all distribution channels, including Duty Free and Duty Paid Airports, cruiseship, borders and inflight. For more information, please contact [email protected]

ALTIMETRE to represent The Mercedes Benz Fragrances as agent


- Nº1 international fru

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- Nº1 im

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- Nº1 liq

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- Fastest growing imported liq

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- Fastest international growing premium liq

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in the world **

- Over 550,000 cases worldwide in 2013***

Pure Liquid Gold

+111%International sales increase in 5 years

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* The Nielsen company, retail March 2013** IWSR, liqueurs traditional category*** Internal sources

www.licor43.com

140214_Moodie-Report_Trade_v3.indd 1 17/02/2014 12:05:54


INSIDER

Bacardi has announced the launch of Bacardi Gran Reserva Maestro de Ron, a super- premium white sipping rum, exclusively in Global Travel Retail.

Gran Reserva Maestro celebrates the craft of Bacardi’s Maestros de Ron (master blenders) and provides a sophisticated trade-up option for premium white spirits drinkers, says the company.

The blend was inspired by a recipe passed down through generations of Master Blenders and uses a slow-filtering of the blended rum – aged up to 3 years – through a unique coconut shell charcoal.

Launched initially as an exclusive to Travel Retail, the first limited production of Bacardi Gran Reserva Maestro de Ron is expected to drive an exceptional new dynamic for the rum category, driving trade-up among premium spirits drinkers and creating an exciting new occasion for rum, says the company.

“The global super premium white spirits segment has grown strongly over the past decade and, backed by the unique quality and heritage of the Bacardi brand and its market-leading position in the category, we are seizing a clear opportunity to upgrade existing white spirits shoppers into the super premium white rum segment. We are confident that this stunning innovation with Bacardi Gran Reserva

Maestro de Ron will set the pace globally for growth in the rum category and inject new levels of excitement among consumers that will ultimately lead to premiumization of the rum category as a whole,” says Mike Birch, Managing Director, Bacardi Global Travel Retail.

Bacardi Gran Reserva Maestro de Ron is offered in a distinctive bottle

Bacardi launches TR exclusive white sipping rum

that features solid Georgian green glass and elegant, strong lines with the wax seal, featuring Bacardi’s iconic bat logo, engraved script on the glass, a hand-crafted label and a premium stopper shaped from raw wood.

“Discerning rum consumers appreciate the extraordinary pioneering position of Bacardi in the history of rum and will be intrigued to experience this super premium white sipping rum, hand-crafted by today’s Maestros de Ron and inspired by a generations-old recipe. We are determined to fully harness the unique power of the Bacardi brand to drive category growth through this and further innovative launches and activations to engage and excite the consumer, creating clear differentiation in the category,” says Amit Datta, Brand Manager Bacardi Rums at Bacardi Global Travel Retail, which has led the innovation launch on Bacardi Gran Reserva Maestro de Ron.

The launch of Bacardi Gran Reserva Maestro de Ron will be supported through a program of HPPs at major airport locations across the world, beginning in summer 2014, featuring a new Bacardi Cuban tasting bar concept, re-creating an authentic retro-style experience of old Havana.

Bacardi Gran Reserva Maestro de Ron (1 liter) is priced at £36.00.

Latin American spirits rankings from IWSR



INSIDER

Patrón Spirits is focusing on its core tequila range in Latin America and the Caribbean, while continuing to educate consumers about the ultra premium tequila’s point of difference, says Joe Arellano, Patrón Spirits Vice President, Latin America and Caribbean region.

“We are concentrating on having people really appreciate the tequilas, the core variants as well as the XO Cafe. Premiumization is a trend that has been going on for some time now. We introduced

our highest range Patron tequila SKU, Gran Patrón Piedra by Patrón. We are trying to get people back to the basics of why Patrón created the ultra premium segment. We want people to appreciate the craftsmanship, the quality and what makes us different and better and special and unique,” he says.

Gran Piedra was launched last summer, and is currently placed in a few locations throughout the region.

“Gran Piedra still has some new

Patrón: showing how ultra-premium can be ultra-appealing

listings to go. We started with those locations that we thought leant themselves best for the passenger mix they have. We are still looking for new listings and opportunities in order to reach a nice organic level of penetration.”

Brazil and Mexico remain two of Patrón’s most important markets in Latin America.

“Both of those markets are doing very well for us. In Latin America we have been able to list product in several new places as well. Brazil has been important, the southern cone has been important. We bolstered our presence in the Caribbean. In Mexico we’ve really stepped up our in-store activations, staff trainings, staff incentives, and in-store advertising. Most of our programs have revolved around fundamental tastings, brand trainings and awareness.”

Arellano says he is pleased with Patrón’s progress in the region.

“We’ve stepped up our consistency programming and brilliant execution. We are excited by our innovation product pipeline, which will bear fruit in the next twelve months. We are happy with the key customer results that we are achieving right now in the duty free channel. We appreciate our duty free partners’ support.”

In May John Kilmartin joined the company as Global Director, Travel Retail. Reporting to President, International, and Global Chief Operating Officer Dave Wilson, Kilmartin will direct all worldwide duty free for the Patrón portfolio of brands.

Patron held a tasting event at Dufry Mexico Terminal 1 Mexico City.

Aldeasa Los Cabos Duty Free Store Patron Cantina at the new Aldeasa Cancun Store Terminal 2


Stay ahead of the competition with the most comprehensive travel retail liquor database.

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draft 1 Duty Free May 2014 draft 2.indd 1 5/9/2014 1:52:39 PM


INSIDER

Tito’s Handmade Vodka became available in Mexico starting in April when Casa Don Ramon began distribution of the brand in both the on- and off-trade.

Tito’s Handmade Vodka, a Texas based company, is one of the fastest growing micro distilleries in the United States, and is made from 100% corn

“We are extremely excited to begin selling Tito’s Handmade Vodka in Mexico. It’s a dynamic market, and we’re proud to partner with Casa Don Ramon to expand our distribution there,” said Bert “Tito” Beveridge, Founder and Master Distiller.

“Casa Don Ramón, house of one of the most prestigious tequila in Mexico,

Tequila Don Ramón, and other tequila brands, is very pleased and thrilled of being the exclusive distributor of such a fine vodka and great brand Tito’s Handmade Vodka. We are very excited with the launch of this fine product and we are pretty sure it will soon become Mexico’s most demanded vodka,” says Ricardo Román, Sales Director of Casa Don Ramón

The brand has seen strong sales growth in the US, driven mainly by word-of-mouth recommendations from consumers.Today the brand is sold within the United States, New Zealand, provinces in Canada, many of the Caribbean Islands, as well as through United Airlines and American Airlines.

Casa Don Ramon to distribute Tito’s Handmade Vodka in Mexico

Botran Aged Rums is celebrating its “year of acceleration” in 2014, expanding its presence throughout the world with a particular emphasis on the US, says Frank Quinones, Botran Rums Managing Director.

Quinones, who took over from Jorge G. Galbis in the beginning of the year after his previous role as Commercial Director, unveiled a new image for Botran Reserva and Botran Solera during the Orlando IAADFS show. The new image includes

a larger bottle that now features age statements.

“We are launching a one liter size that is exclusive to duty free. Domestic markets will still have the .750 bottle. You get the true duty free value,” says Quinones.

The new bottles feature the “Denomination of Protected Origin – Guatemalan Rum” (DPO) seal that Quinones says proves the quality and uniqueness of Botran rums.

The DPO designation, obtained through the efforts of the Guatemalan Association of Spirits and Liquors Manufacturers (ANFAL), gives new added value to Guatemalan aged rums. It protects against imitations by specifying requirements for geographical and soil characteristics, sugar cane varieties, the cane syrup extraction process, fermentation and distillation, and climate conditions under which aging must occur under the Solera System.

Botran Aged Rums – Botran Añejo 8, Botran Añejo 12, Botran

Botran accelerates its presence in the US and worldwide

Añejo Reserva and Botran Añejo Solera 1893 – are covered by the Guatemalan Rum DPO.

Quinones also announced Botran’s new partnership with Chase International, which will distribute Botran rums in US duty free and in the Caribbean domestic and duty free market.

“Our partnership with Chase International will add distribution strength. Chase fits well with Botran. We wanted to work together and they had a hole in their portfolio that Botran perfectly fills. And we needed more strength in our US distribution. The US for us is key, both domestic and duty free,” says Quinones.

Chase Donaldson, Chase International President, agrees. “Botran is an excellent fit with our portfolio. Botran is a super premium brand and a family-owned business, as are most of the brands we deal with. We deal with the brandowners,” he says. “We see great opportunities for Botran, expanding and showcasing the image of the brand.”

Quinones sees the US market as critical to the future success for Botran.

“If we are going to make it, we have to make it in the US. We are raising the volume and awareness in the US. We also grew and entered key markets in Latin America and Europe, and opened Russia this year. This is now the year of acceleration, especially in the US.

“What we are doing in US airports – in Miami, New York, Atlanta --is going to impact the duty free channel. With this investment in the US, duty free will get more attraction, which allows us to attract more interest from other operators. We feel people are really getting to know the brand.”

Botran has also expanded its marketing team, adding a dedicated Global Marketing Brand Manager to give Botran the focus it requires and present a uniform image of the brand globally.



INSIDER

Waldemar Behn GmbH has announced that it is launching DANZKA Vodka in the US Virgin Islands market through leading distribution company Glazer’s Premier Distributors, LLC. The first orders have already been shipped and will be on shelf in domestic and duty free outlets in St. Thomas, St. Croix and St. John in June.

“We are particularly pleased that Danish DANZKA Vodka, established as it was in Copenhagen, will now be available in the Virgin Islands, with its strong and colorful Danish history and heritage,” says Torben Vedel Andersen, Waldemar Behn Global Sales Director.

“DANZKA is a perfect fit for the Virgin Islands, which for generations was part of Denmark as the Danish West Indies, until it was sold to the United States in

1917. You can see the Danish heritage throughout the islands, from the names of the streets to the design of the historic buildings, just like you can see the Danish heritage in DANZKA Vodka,” Andersen adds.

Liz Zimmermann, President of Glazer’s Premier Distributors, comments: “We are very pleased to add DANZKA Vodka to our portfolio and see it as a traffic source. The fact that it is not available in the U.S. domestic market makes it very attractive to our American travelers and we will be featuring the brand in the downtown Charlotte Amalie duty free stores. We also like the distinctive aluminum bottle which allows it to travel well, another plus for the cruise passengers that visit the Virgin Islands.”

DANZKA Vodka to launch in the USVI through Glazer’s Premier

Glazer’s Premier Distributors is one of the leading spirits distributors in the US Virgin Islands, representing major brands for Beam Global Spirits (Beam Suntory), Pernod Ricard and The Patrón Spirits Company, among others.

Godiva’s Americas Travel Retail team plans to expand its presence in Latin America and onboard cruise ships with compelling innovations, new theater and HPP’s to activate these launches, and with a new interactivity concept, says the company.

“Offering travelers a moment to escape from their routine is a real challenge. With this year’s novelties, Godiva has foreseen enticing activations, always keeping at the center of attention our delicious and luxurious chocolates, sure to delight our consumers,” says Christoph Neusser, the new VP Global Travel Retail at Godiva Chocolatier.

Diane Buchanan, Travel Retail Regional Manager Americas/Caribbean says that the Godiva collections are “sure to charm and delight our customers worldwide, with authentic recipes and unique creations, setting Godiva’s gold standard.”

During the second half of the year, Godiva will celebrate its heritage and craftsmanship with its new TR exclusive Limited Edition Créations Praliné, a gift-box offering 18 chocolates with four new recipes inspired by Godiva’s signature praliné recipe.

Also new this year is Messages Tout Chocolat, a trendy gift-box with chocolates labeled with messages of “Zen,” “Luck,” “Love” or “Joy.”

The Godiva Biscuit collection has also been entirely redesigned with new packaging featuring the luxurious gold European destination stamping. To

Godiva uses messaging, theater and quality to expand Americas presence

present the new design, selected shop floors will be decorated with a Podium featuring a large globe, says Buchanan.

Godiva will once again be co-sponsoring the coffee breaks during the ASUTIL Conference.


�ore than a gift

TRAVEL RETAILEXCLUSIVE


INSIDER

Amy Wilson, World Travel Retail Category Strategist at The Hershey Company, is bringing her expertise in category strategy and insight to travel retail, a channel she began working with nearly a year ago. For her, the most exciting aspect of her position is bringing insight to her customers and building collaborative partnerships that will help them grow the confection category.

“Whereas in the domestic market we have the Nielsen data to work with, travel retail does not have this resource and it has been very exciting for me to have information coming out now from the travel retail channel, from third parties and researching to bring new insights,” Wilson tells Travel Markets Insider.

The retailers in the travel venues are receptive to receiving these insights and data, says Wilson.

“I think that they appreciate learning the facts behind the solutions we suggest from category management. We bring insights about different nationalities and how they shop, and what motivates them to purchase confection products. These insights are helping our customers make more fact-based decisions.

“It is really about understanding consumer traditions and motivations – such as the popularity of gifting confectionery in Asia and the Middle East -- and we package our products accordingly. If we understand the usage occasions that people are shopping for, we make sure that Hershey has the product to meet those needs.”

The confectionery category is expected to double by 2020 in Travel Retail so it is an important growth category that benefits from its high impulsivity, accessible pricing and the fact that it is not impacted by global travel restrictions.

According to Wilson, Hershey is focusing on three key growth drivers to capture the unmet demands of the confection category: 1. Ease of Shop; 2. Maximize

Impulse; and 3. Unlock Snacking. “By simply getting category

management basics right in store, retailers can expect a 10% increase to their confection category growth,” she explains.

The confectionery category outpaced total DF & TR growth in 2013, increasing 9.4% in dollar growth. Hershey delivered a strong double digit growth and significantly outpaced category growth.

“In 2014 Hershey will continue to close white space, partner with key retailers/operators, and support brands/pack-types needed to grow the confection category and excite the shopper,” says Wilson.

“The travel retail channel is an opportunity for Hershey brands to be enjoyed by nationalities across the globe,” she continues. “Hershey is committed to the travel retail channel and as a result we have added additional resources to support the business. In addition to adding a Category Strategist position last year to implement category management globally, Steve Bentz has recently named Edgar Fernandes as the Director Americas World Travel Retail and South American Exports. In this role, Edgar and his team will be focused on driving growth with our key brands and collaborating with our retailers in this region to bring excitement to the confection category.”

Hershey is seeing potential across all travel retail markets, notes Wilson, with

Hershey focuses on category strategy and consumer insights to grow confection business in Travel Retail

strategy depending on the market. “It’s about understanding

the confection industry trends and adopting strategies with our customers to capture the unmet demand of the confection category. Hershey still has white space opportunities to close in all markets. We will also be utilizing category management principles, item innovation, and innovative promotions to excite the shopper and ultimately drive growth,” she explains.

More specifically, Wilson points out that 48% of confection shoppers who interact with the category do not

go on to purchase: “[This] potentially means confusion at fixture,” she suggests.

“Having the right range, effective shelf management, and clear signage will increase footfall to the confectionery category. The goal is to entice more shoppers into the confectionery category, buy more product, and spend more when they buy.”

When it comes to product offerings, Hershey understands that it is very important to provide brand/pack-type solutions that meet the travelers shopping needs.

“While differentiation is an important part of the success equation in Travel Retail, having a selection of brands and pack-types that meet the various snacking and gifting needs is paramount,” says Wilson, adding that snacking is the largest category within the confection category and driving growth.

“Hershey will continue to focus on this usage occasion as we launch innovation in the future and [use] category management principles to ensure we are meeting the needs of nationalities in each region.

“Success comes from understanding the goals of retailers/operators up front and then collaborating with them on an insight driven approach to drive category/brand growth through promotions tailored to those insights / needs,” she concludes.

“Hershey’s objective is to be seen as the leading World Travel Retail confectionery experts that turn insights into category activation.”


The Tastes of Happiness.

H E R S H E Y ’ S I H E R S H E Y ’ S K I S S E S I R E E S E ’ S I I C E B R E A K E R S I J O L LY R A N C H E R I B R O O K S I D E

www.hersheystravelretail.com

Iconic brands. Delicious choices. And new Travel Retail Exclusives

such as REESE’S Pieces and REESE’S White Peanut Butter Cups

Miniatures. You bring all this and more to your customers with

Hershey’s extraordinary portfolio of chocolate and confections.


INSIDER

FlyInStyle adds Mobile Video ContentFlyInStyle, the new airport shopping

and entertainment app that went live in the App Store March 2014, has announced new functionality: video content.

This option provides marketers the opportunity to share promotional, social and informational video content to passengers through the app, and tie this in to campaigns across other touch points. Video has the highest ROI in social marketing and the company is very excited to expand its service offering to display video through mobile.

FlyInStyle opens a mobile communication platform for airport brands & retailers never before seen in the industry, allowing them to reach their consumer in innovative ways while increasing consumer understanding in the airport, says Amanda Anthony, CEO & Founder. “The app specializes

in improving the airport experience by showcasing offers, tips & events in retail and restaurants”, she says.“We are in a very exciting time, where consumers are evolving in the way they engage with the world, share content and shop. Mobile is changing the way our passengers pass time during their airport down time and we are only at the tip of the iceberg of what will be a major shift over the next few years globally. The FlyInStyle mobile platform can influence passengers to visit a particular store and make buying decisions. In the airport, as passengers turn to their mobile devices for entertainment, the opportunity to engage them with relevant dynamic content will continue to grow.”

FlyInStyle allows its beta merchant partners to publish content in any airport globally in minutes and determine the duration of each offer and event. The

focus for now is in the Americas as the company ramps up with offers, tips, deals and events while building its user acquisition plan. The company is pushing merchants to publish global offers to give the passenger the best possible experience in the app for their entire trip. They also have sights set on expanding to Android, engaging high spend targets like Brazilians and have accelerating multiple language support. FlyInStyle is working alongside its brand and retail merchant partners on driving awareness, downloads, and usage during the trip through activities at the airport and online.

FlyInStyle is in beta testing with select brand and retail partners but is gradually adding new merchants throughout the beta period. If you are interested in partnering, please email [email protected] for more info.

[email protected]

5/1/14 8:39 AM

Documents

ASUTIL turns 20: Recognizing two decades of accomplishment - Duty Free …travelmarketsinsider.net/shared/images/Asutil_2014_web... · 2014. 6. 11. · 3 June 2014 ASUTIL Special