Features
Given its dominant position in Central America and the Caribbean, Weitnauer America was more exposed than most operators to the post-September 11 decline in US traveller numbers. But, as senior vice-president product category marketing Jonathan Potash tells DFNI, liquor is proving to be a resilient product sector.
Beleaguered by falling passenger numbers and the competition of landside superstores, Eurotunnel?s third-party operators are turning their attention to increasing customer spend and the burgeoning freight and pre-order business. Isabelle Caprano talks to incumbent retailers Alpha Retail and Aelia.
On the eve of the International Conference on Illicit Tobacco Trade, new threats have emerged from the treaty that could spell the end for duty-free tobacco. Gavin Lipsith examines the dangers of the latest draft of the World Health Organization?s Framework Convention on Tobacco Control, and the way forward.
Statement of The International Association of Airport Duty Free Stores before the International Conference on Illicit Tobacco Trade
To aficionados, a good rum is every bit as prestigious as a fine Cognac. But many consumers struggle to see the spirit as anything other than a mixer, while the growth of flavoured rums threatens to overshadow the premium end. John Rimmer looks at the latest developments in the duty-free rum market.
Havana Club rum is everywhere in Cuba?it?s up to Pernod Ricard World Trade (PRWT) to place it everywhere in travel-retail.
Although the US and Canada are struggling to bounce back from economic downturn and a slowdown in regional travel, opportunities continue to emerge for operators in North American travel-retail. As the leading airports improve their retail offer, recent retail deals have thrown up a few surprises. DFNI takes a glance at the forthcoming opportunities and latest tender news from selected locations.
As the Uruguayan government prepares to launch an open tender to manage and operate Montevideo Carrasco airport, the duty-free tender won last December by local operator Neutral has been declared void.
Research group JRA has just completed its half-year Travel Business Recovery Report comparing travel and buying trends among key nationalities and how they have emerged from the post-September 11 crisis. DFNI has exclusive access to the report and highlights some of the key trends affecting travel-retail in the last six months.
Not enough travellers are buying liquor in duty-free shops. That?s the message from Allied Domecq Duty Free, which is calling for a concerted effort to make liquor stores more attractive to gift-givers. John Rimmer talks to the supplier about its plans to rejuvenate the category in travel-retail.
Earlier this year, Allied Domecq unveiled a daring marketing drive behind core brand Ballantine?s Finest in a bid to raise brand awareness among young male drinkers aged 25 to 35. The campaign, entitled Go Play, features colourful, modern imagery that is a conscious move away from traditional Scotch advertising.
Despite the many premium products on the market, vodka has traditionally been a high-volume, standard-end seller with little effort made to encourage consumers to trade up. Is the pattern changing in duty-free? John Rimmer investigates.
Swatch has enjoyed a long involvement with The Olympic Games, culminating in its appointment in 1996 as official timekeeper for the event. It retains the title for the 2004 competition, and celebrated the partnership in June by unveiling its Irony Diaphane watch range in Athens. Gavin Lipsith was there for DFNI, the only duty-free magazine at the event.
Irony Diaphane, Swatch?s latest launch, is timed to maximise the group?s Olympic Games sponsorship.
Retail News Analysis
INTERNATIONAL. Campaigners have voiced dismay at the latest wording of the Framework Convention on Tobacco Control (FCTC), released on July 16, which they argue could be even more damaging to duty-free than its predecessors. The 22-page document includes an amended version of the proposal to ban duty-free tobacco sales, as well as new suggestions to monitor cross-border tobacco movements and ban self-service tobacco offers.
SPAIN. Risk capital financier 3i Spain, a subsidiary of UK-quoted group 3i, has taken a 49% stake in Barcelona-based ship supplier and duty-free shop operator Provimar.The purchase follows a management buyout led by managing director Juan Sunet and executive director Werner Muehlemann. Sunet and Muehlemann have purchased the company from outgoing chairman Fernando Puche and Swiss-based Cornwall Holdings for Eur27m ($26.7m).
GREECE. The consortium of Greek jeweller Folli Follie and IT company Germanos is poised to take a 40% stake plus management control in Hellenic Duty Free Shops. The news emerged as the Agricultural Bank of Greece named the group as the preferred bidder for a 40% stake in the operator. The deal remains subject to further negotiations over financing and clearance by regulatory authorities.
URUGUAY. As the Uruguayan government prepares to launch an open tender to manage and operate Montevideo Carrasco airport, the duty-free tender won last December by local operator Neutral has been declared void.
CANADA. The Canada Customs and Revenue Agency (CCRA) has received 10 applications from companies interested in a pivotal duty-free licence at the Douglas border crossing in British Columbia. The deadline for bids is September 20.
SOUTH AMERICA. Interest in this year?s ASUTIL conference is peaking as the countdown begins to what promises to be South American duty-free?s most lively debate yet.
UK. BAA has announced a 5% fall in pre-tax profits for the first quarter to June 2002. But retail continued to prove resilient, said the group, with net retail income up 1.6% to £126m ($197m) and net retail income per passenger up 3.9% to £3.96 ($6.18). Overall profits amounted to £143m ($223m). BAA attributed the decrease in profits to falling traffic, added security costs and increased borrowing.
SPAIN. Former Aldeasa director of international operations and ASUTIL board member Marcelino Oreja is to become a Euro MP.
ISRAEL. James Richardson has gained an extension to its duty-free contract at Tel Aviv Ben Gurion airport terminal one, operator and airport authority have confirmed. The contract, originally due to expire in November, will run until the new terminal three opens towards the end of 2003 or in early 2004. As part of the agreement, Richardson has withdrawn legal action against the Israel Airport Authority (IAA) launched earlier this year.
CANADA. West Coast Duty Free is planning a 3,000sq ft (279sq m) extension to its store at the Pacific Highway crossing at Canada?s southern border in Surrey, British Columbia. The company is drawing up plans, and aims to start work by late autumn and complete the expansion by early spring next year.
Liquor & Wines
LVMH has made its first acquisitions in the vodka category with its purchase of a 40% stake in US spirits importer Millennium Import Co, distributor of super-premium vodkas Belvedere and Chopin.
Travellers at London Heathrow airport terminal three have been invited to try The Bacardi Experience as Bacardi-Martini and World Duty Free joined forces in an extensive promotion behind duty-free?s leading rum brand.
Dublin-based liquor company BABCO is seeking to expand in duty-free after the successful launch of its leading brand Mickey Finn?s Spiked Schnapps.
Tobacco Products
The Cuban government has launched an anti-counterfeiting campaign to eradicate the growing trade in fake Habanos cigars, after it was revealed that about 5m counterfeit sticks are made a year.
Fragrances
Aramis? DKNY brand has introduced two summer fragrances for men and women, available in travel-retail markets worldwide for a limited period only.
Miami airport has come through the US economic downturn in good shape, according to Parbel division manager Lancôme Galia Sandres.
Cosmetics
Clarins? Bohemian Dreams make-up collection for autumn/winter is based on the rich colours of gypsy folklore, and features dark shades for sultry eyes and lips.
Biotherm has added a cosmetics line to its existing body and skincare offer, set to be rolled out to local and duty-free markets from September.
Afraid that BSE?or Mad Cow Disease?could enter the country from Europe, the Chinese Ministry of Health and the State General Administration of Quality Supervision and Inspection and Quarantine decreed in March that Chinese retailers had one month to clear their shelves of imported cosmetics.
Confectionery & Fine Foods
Singapore distributor Focus Network Agencies has organised a two-month promotion on behalf of Hawaiian Host at Kuala Lumpur International airport.
German chocolate manufacturer Stollwerck is preparing to give its premium brand Gubor star billing alongside Sarotti under new owner Barry Callebaut, following its introduction at the TFWA Asia Pacific show in Singapore earlier this year.
Belgian chocolate specialist Bouchard L?Escaut is poised to relaunch a number of key brands this autumn and will then look to expand in duty-free following trials with The Nuance Group?s Chocolate Box stores.
Gifts & Electronics
Jewellery & Watches
A consortium led by Rafael Español, and approved by Banco Santander Central Hispano, has agreed to purchase the debt-ridden Spanish jewellery company Majorica for an undisclosed sum.
R&R Time Group, the worldwide distributor of Caterpillar timekeeping equipment and the licensee of Bruno Banani watches, has unveiled its latest design under the brand name Roamer.

Magazine
Magazine

