Features

Shirley Bassey wasn?t wrong. In the watch business diamonds are back in force, and more travel retailers are upgrading to higher end products as the watch category expands. Kevin Rozario reports.
Suppliers are not yet convinced of the benefits of adding diamond watches to airline duty-free trolleys, although cruiselines are becoming more of a target.
The sporty look is always a good bet in any product category; in watches it has come into its own and travel-retail is seeing the benefits. Kevin Rozario looks at some of the brands in the driving seat.
At Basel and SIHH in Geneva, a raft of sports models is being shown. Here is just a small selection.
The mood appeared to be one of frustration and futility as the latest WHO (World Health Organization) talks ended with no sign of progress. Instead, delegates were left to consider a number of suggested amendments that could spell disaster for the duty-free tobacco sector, along with the $2.3bn generated in sales last year.
The new travel-retail outlet at Faro airport is expected to be the model used by retailer Lojas Francas de Portugal (LFP) to upgrade further shop units in the country.
As revealed in DFNI 5, this year?s ASUTIL conference is to be held in Montevideo from September 4 to 6.
Pernod Ricard World Trade (PRWT) introduced its new Americas team to the trade at last month?s IAADFS show in Orlando. Pernod Ricard USA Travel Retail will be headed by Ian Williams, who will report to PRWT chairman and ceo Gilles Cambournac at the supplier?s headquarters in Hounslow, UK.
Nicotine addicts can rasp a wheezy sigh of relief with the news that Russian airline Aeroflot will be providing nicotine patches, gum and inhalers on all flights. 
Bahrain Duty Free?s new airport retail complex marks another step up in standards in Middle East duty-free. For Aer Rianta International, its new regional flagship is a benchmark for other activities in the region. Dermot Davitt visited the new complex.
There is rapid change elsewhere in the region, and ARI is examining all the opportunities. For instance, the arrival of a BAA-led consortium to manage Oman?s international airports under a 25-year agreement signalled the sudden end of Oman Duty Free Co?s (DFC) tenure as duty-free operator at Seeb and Salalah.
It?s been a mixed year for Aer Rianta International in its Middle East operations. While the new shining star of the business, Qatar, continues to excite, its impending exit from Damascus and uncertainty over Beirut and Cyprus cloud the picture. Regional managing director John Sutcliffe delivers an overview.
Marketing initiatives are helping relieve the pain of Bahrain Duty Free's loss of European spending on liquor and tobacco.
The recent escalation of civil unrest in the country, along with a dispute between the main operator at Tel Aviv Ben Gurion airport and landlord Israel Airports Authority (IAA), is placing unprecedented pressure on Israeli travel-retail.
This year's Duty Free Show of the Americas proved again the resilience of the trade in adversity. An upbeat mood prevailed despite fewer numbers, but the shock of September 11 appears to be receding, and there is renewed optimism about the year ahead. DFNI provides a pictorial look back at the week in Orlando.
The Raven Fox Enchantment Ball held in London on March 8, proved a resounding success for this year's charity, Cosmetic Executive Women France.

Retail News Analysis

POLAND. Poland?s state-run Privatisation Agency is to sell 27% of trading company and duty-free operator Baltona. The deadline for offers was March 22.
CANADA. The Nuance Group and Australian food retailer Simon Johnson have signed an exclusive franchise agreement to roll out a fine food concept to international travel-retail markets. Nuance will open its first Simon Johnson franchise store at Vancouver International airport in June 2002.
CZECH REPUBLIC. The closure of the Czech Republic?s duty-free border stores will mean lost sales of Kr3.76bn ($103m) this year, according to a survey into the effects by the local GfK Praha Institute.
PORTUGAL. The new travel-retail outlet at Faro airport is expected to be the model used by retailer Lojas Francas de Portugal (LFP) to upgrade further shop units in the country?in particular its Lisbon store which is due for an overhaul. LFP is the retailing joint venture between national airline TAP Air Portugal (49%) and The Nuance Group (51%).
CHINA. China Duty Free Group general manager Gai Zhixin has confirmed that the company is to open three more downtown stores in response to growing tourism to China. The new outlets are in Dalian, Xiamen and Qingdao, and the Dalian shop is expected to open as soon as the end of this year.
UK/INTERNATIONAL. Alpha Airports Group revealed substantial losses in its 2001 results this week?but insisted that its recent steps to streamline the business would allow it to benefit from the anticipated upturn in the travel and tourism business. ?It has been a tough year but we feel we?ve come out in reasonably good shape,? Alpha ceo Kevin Abbott told DFNI.
US. LVMH Moët Hennessy-Louis Vuitton is understood to be seeking a buyer for Miami Cruise Line, which it bought in 2000, as the group seeks to scale back its retailing operations.
Many of our readers will be aware of the sad passing of our friend and colleague Desmond Begg, DFNI?s long-time Latin American editor. Desmond died suddenly on Friday 29 March at the age of 47. 
INTERNATIONAL. Despite an encouraging increase in total revenues, King Power International Group has reported a fall in net income for the year ended 31 December 2001. Revenues stood at $116.3m for the year, compared with $108.9m for 2000.
ARGENTINA. The long-awaited opening of the Puerto Iguazú Free Zone at Argentina?s Triple Frontier took place on March 15.
US. Pressure is growing on DFS Group?s duty-free operation in Hawaii, following the news that sales fell 25% to $172.5m in 2001. The company, which guarantees $60m a year to the State Department of Transportation under its latest five-year concession, is struggling to meet its terms in Hawaii and some locations on the US west coast.
Now in their fifth year, the Raven Fox Awards for Travel-Retail Excellence in Asia/Pacific will again recognise innovation and commitment to quality in the region. 
OMAN. Omani operator Duty Free Co (DFC) has hit out at the way in which it was ousted from its duty-free concession at Seeb airport earlier this year. DFC?s contract was terminated as Seeb?s new landlord Oman Airport Management Company (OAMC) took over the operation of Seeb and Salalah airports on January 21.

Liquor & Wines

Blended Scotch whisky Bell?s is to be given a facelift as supplier GuinnessUDV repackages the brand this year.
Allied Domecq is focusing on the gifting sector with a series of new liquor items designed to appeal to gift givers and impulse buyers.

Tobacco Products

Vice-president Latin America Sergio Rotati told DFNI. ?After South America, Europe will be our next target. You?ve heard of globalisation? Now prepare yourself for clovalisation.?
The industry must aim to have the duty-free clause removed from the World Health Organization?s (WHO) Framework Convention on Tobacco Control (FCTC) altogether, or face devastating consequences. That was the message from International Travel Retail Confederation director-general Keith Spinks.

Fragrances

The company is working on a range of travel-retail exclusive fragrances, skincare and cosmetics products, which, it hopes, will help forge a clearer corporate identity for the brand in duty-free shops.
Coty?s Lancaster division has signed a licensing agreement with actress Jennifer Lopez?s Sweetface Fashion Company to develop and market fragrances and cosmetics under the J.Lo by Jennifer Lopez brand name.
Versace?s new Versus line is targeting a new younger consumer, export manager Marcio Dos Santos told DFNI.

Cosmetics

Dior?s major launch for this year is Bikini, a range of three bodycare products designed to improve the skin?s texture and help reduce signs of cellulite.
Sisley?s new Tropical Resins Complex is available now in travel-retail markets where the brand is present, including Brussels, Amsterdam, Frankfurt, Düsseldorf and Rio de Janeiro airports.
Estée Lauder has said it is enjoying considerable success with its Origins Peace of Mind Collection and A Perfect World Body Range.

Confectionery & Fine Foods

Qatar Duty Free is talking to confectionery and food suppliers, including Middle East specialists, about the next phase in transforming its airport shop at Doha.
Kraft Foods World Travel Retail has taken its successful ?What?? domestic advertising campaign and adapted it for roll-out in duty-free. Stockholm and London Stansted are among the first airports to feature the humorous advertisements for Toblerone.
The Nuance Group has signed an exclusive franchise agreement with one of its consultants, Australian food retailer and television personality Simon Johnson, for the roll out of a fine food concept in travel-retail.

Gifts & Electronics

Genesis Distribution exhibited the full latest range of its Warner Bros toy portfolio at IAADFS last month, after showing prototypes at last year?s show.
US plush toy specialist Gund is stepping up its international duty-free focus and actively seeking new business in Europe and South Asia/Pacific, according to director international division Enrique Hermes.
Dutch operator Mimex Airport Retailer is finalising plans to open two new shops at Frankfurt International airport this Summer.

Jewellery & Watches

Wenger watch, the timepiece division of the Swiss Army knife producer, is to unveil two new lines at this year?s Basel show.
Swatch has launched a new collection of watches celebrating the 40th anniversary of the James Bond films.
When the new terminal two opens at Munich airport in Spring 2003, a new watch retail concept is expected to stock some of the most prestigious brands in the industry, with Rolex tipped to be among them.
Swarovski?s watch collection is a new departure for the company, vice-president travel-retail Peter Zottl told DFNI.

Fashion & Leathergoods