Features

DFNI asked a number of companies what role there was for locally-produced destination/souvenir chocolate packs alongside big-selling international brands.
Helsinki Vantaa airport has boosted capacity with a new runway just as passenger numbers are falling. But Helsinki Airport Duty Free remains confident that retail fortunes will change. Jonathan Brown reports.
At its general assembly last month South American trade association ASUTIL elected a new board.
Abu Dhabi Airport Catering & Duty Free managing director Mohamed Mounib has been named president of the Middle East Duty Free Association for a two-year term, effective January 1.
Operators are upbeat despite the threat of a new war in Iraq, and have reported good sales in recent months. But if they are to continue to prosper in 2003, retailers will need to be creative about what products they offer and how they present them, writes Michael Eaton.
Manufacturers may have neglected border stores in the past but the situation is changing. As operators allocate more space to food and cross-border traffic increases, suppliers are set to devote more attention to the business to increase volume sales. Michael Eaton reports.
With a new state-of-the-art store, Abu Dhabi Duty Free is set to revolutionise its confectionery and fine foods offer. It will tailor its product selection to passenger profiles and place more emphasis on exclusives. Deputy managing director Dan Cappell talks to DFNI.
Inflight Service may have lost its Stockholm Arlanda duty-free contract, but managing director Peter Candell is intent on forging a new future for the group. Under his stewardship, Inflight Service is now focusing on its ferry business, while identifying new opportunities in the airline market, including the fast-growing low-cost business. Jane Labous reports.
Despite the bitter aviation climate, Melbourne airport?s owner Australia Pacific Airports Corp has returned a profit for the first time in its five-year history. Chief executive and managing director Chris Barlow tells Kevin Rozario how the result was achieved, and outlines the retail plans that will help secure future profitability.
Changes at Paul Martin Design, Sales & Marketing; International Travel Retail Confederation relocates; Goudappel Coffeng acquires Market Square.
Personnel changes at La Prairie, TFWA, Zirh, Montine International, WDF, The Nuance Group

Retail News Analysis

EUROPE. The International Travel Retail Confederation (ITRC) is to offer advice and guidance to operators on how to cope with duty-free abolition in the 10 states scheduled to join the EU in May 2004.
UAE. Dubai Duty Free (DDF) has announced sales of Dh1.1bn ($299.5m) for 2002, a rise of 23% over 2001 and a new sales record.
UK. British Airways? inflight retail arm has reported that it had a good year in 2002 and is looking forward to further improvement this year. Although final figures are yet to be confirmed, inflight sales are expected to meet their revenue target of £43m ($68.8m) for the year.
Interest is building in the Raven Fox Baltic and East European Travel-Retail conference, to be held in Tallinn, Estonia on June 8-10 2003. Programme details are now being drawn up and a full agenda will be released shortly.
UAE. Emirates Airlines duty-free sales manager John Sime has called for the abolition of listing fees for inflight products.
ExclusiveIsrael Airports Authority has announced the firstof some 70 tenders for its new terminal 3, and believes it can dramatically boost duty0free revenue.
Let?s welcome the announcement of a new World Council that draws together the trade?s associations, even if it is nearly four years too late to save intra-EU duty-free. And even if it arrives just as the battle to save duty-free tobacco goes down to the wire, probably making it too late to make a difference.
US. The opening stage of the duty-free tender at Washington?s two airports Dulles International and Ronald Reagan National closed on December 20, with airport authority Metropolitan Washington Airports Authority (MWAA) receiving ?multiple? bids, according to a spokesman.
ExclusiveCHINA. The Chinese government has partially lifted its nine-month ban on cosmetics, fragrances and confectionery from Europe and allowed French goods to return.
RUSSIA. Gebr Heinemann has opened a new duty-free store at Vladivostok airport. The operator told DFNI it hoped to capitalise on the city?s potential as a centre for international trade.
AUSTRALIA. A report compiled by public policy adviser the Australia Institute has called for duty-free in the country to be scrapped, describing it as ?a hidden perk for the rich?.
HONG KONG. The world?s top duty-free operators are expected to compete fiercely for the crucial liquor and tobacco contract at Hong Kong International airport, where tenders are being called this month.
EU EUROPE. A meeting of leading European operators and airports scheduled for February 13 in London could change how the region?s travel-retail is marketed to travellers, almost four years on from intra-EU duty-free abolition.
INTERNATIONAL. A new global body, the Duty Free and Travel Retail World Council, has been formed to promote the industry worldwide and to defend it from regulatory, economic and political interference or attack.
Exclusive: By Anna FentonTAIWAN. Diageo faces a potentially crippling year-long sales ban in Taiwan after an advertisement offended the island?s lawmakers.

Liquor & Wines

Morrison Bowmore Distillers has extended its UK duty-free and travel-retail distribution portfolio with four new brands. From January 6 2003, the supplier has taken on the distribution of Campari, Skyy Vodka and Cinzano.
Highland Distillers has unveiled a new set of four merchandising units, designed exclusively for duty-free by Portland Design, to display its Scotch whisky portfolio.
Dutch vodka supplier Ursus is seeking to expand into China?s duty-free market after appointing an agent to oversee the brand?s travel-retail sales in the country.
UK brewer Scottish & Newcastle (S&N) enjoyed ?very good? results in 2002, buoyed by a strong performance in the military market.

Tobacco Products

By Gavin LipsithA recently-published European Commission report on the fifth round of negotiations on the Framework Convention on Tobacco Control suggests that support for the continuation of duty-free tobacco sales is growing.
Tobacco companies supplying the UK market may be subjected to a new tax regime when the government publishes a report on how it can offset losses incurred through smuggling.
British American Tobacco (BAT) has unveiled the latest addition to its Dunhill brand family, the super-premium Dunhill Top Leaf.

Fragrances

Paco Rabanne is focusing heavily on travel-retail in 2003. The company has introduced a fresh corporate identity and revamped product packaging.
Bvlgari opened four new travel-retail outlets in 2002, at Bangkok airport in Thailand, New York JFK airport and Hollywood Galleria in the US, and Tokyo Narita airport in Japan.
Cosmopolitan Cosmetics will roll out Escada?s new limited-edition fashion fragrance, Ibiza Hippie, next month.
Men?s brand Zirh has signed a licensing agreement with French Connection to manufacture and distribute men?s and women?s prestige fragrances and ancillary products under the trade name fcuk.
Lancaster Group has launched a new men?s fragrance under its Davidoff brand, unveiling the product at an international press launch in Berlin.

Cosmetics

Guerlain?s Divinora make-up line for spring 2003 is available this month.
Lancaster Group has introduced a new self-tanning product to its suncare range.
Versace has designed a colourful new make-up collection for spring and summer.
Yves Saint Laurent?s spring look will be on-counter in airports from February 11.
Juvena?s new bodycare line uses extracts from the pomegranate as the base for its formula.
Switzerland-based Pureneige has launched a line of skincare products worldwide.

Confectionery & Fine Foods

Caffarel is planning to appoint agents to develop its travel-retail business in France, Germany and the UK.
Toms Confectionery Group, which has traditionally concentrated on its Anthon Berg brand in duty-free, is set to raise the profile of the Toms name associated with several domestic best-sellers.
Niederegger expects 2003 to be a breakthrough year in duty-free on the back of new lines being shown at the ISM show in Cologne later this month.
 Walkers Shortbread has broken with tradition for its latest launch, and introduced a savoury line called Cheese Shortbread alongside its well-known sweet biscuits range.
Hawaiian Host has added two more destinations to its Vacation Chocolates series.
Exclusive: By Michael EatonSingapore distributor Distriworld is expanding its activities into the Middle East duty-free market and has set up an office in Dubai.
French chocolate specialist Valrhona is stepping up its travel-retail activity following its debut at the TFWA World Exhibition in Cannes last autumn.
Specialist distributor A&E Petersen is embarking on a programme of tailor-made merchandising initiatives, encouraging retailers to submit images of existing fixtures to enable the company to offer operators advice on makeovers.
Dufre partner Paolo Berentzen predicts that the agency?s fine food sales will match confectionery turnover within 12 to 18 months, without any reduction in chocolate?s performance.
Belgian gourmet chocolate maker Daskalides is working on new pack identities for this year.
Storck Travel Retail has introduced a new duty-free exclusive design for its Merci packs.
Chase International has been appointed the exclusive US duty-free distributor for Lily O?Brien?s Finest Irish Handcrafted Chocolates.
By Michael Eaton Masterfoods International Travel Retail (MITR) is adopting what it called a magnificent seven top brands strategy for the year ahead, with the focus on M&M?s, Celebrations, Galaxy/Dove, Snickers, Mars, Twix and Bounty.

Gifts & Electronics

By Rebecca MannAlpha Retail has relaunched its Glorious Britain destination merchandise/souvenirs concept with the opening of a new 72sq m (775sq ft) airside shop in London Heathrow airport terminal three (DFNI October 15 ?02).
The UK division of Montine International has appointed John Falconer to the post of duty-free sales director as the company mounts a determined push into the duty-free market.
US company Daron Worldwide Trading, which specialises in aviation toys and collectibles, has created a new 55-piece Airline Construction Toy Set for inflight and ground shop duty-free. It will retail at about $10.
French retailer CDG Participations has rescheduled the opening of its second Richesses des Régions de France outlet, at Paris Orly West.
The world?s first stand-alone travel-retail Waterford Wedgwood store opened in London Heathrow airport T3 on December 17.

Jewellery & Watches

Swiss watch supplier Swatch is celebrating St Valentine?s Day with the launch of two new products targeting the love-struck consumer.
By Jonathan BrownFollowing its launch of the world?s first wristwatch with Palm OS capabilities, Fossil has announced another high-technology hook-up.
German jewellery supplier Thomas Sabo is planning to develop its duty-free operations further during 2003. At present about 5% of the company?s total business comes from its sales in the duty-free channel.
The management of jewellery supplier Folli Follie is looking forward to 2003 with great confidence. The company has expressed its belief that this year will see a marked rise in profits and turnover, forecasting a 30% year-on-year improvement.

Fashion & Leathergoods

Aria, Aqua, Terra and Fuoco (air, water, earth and fire) are the enduring themes in Etienne Aigner?s Spring/Summer 2003 collection, from its ready-to-wear offer to accessories such as leathergoods, ties and scarves.
Spanish leathergoods and luggage brand Olimpo is reaping the rewards of exhibiting for the first time at the TFWA World Exhibition with new contracts across the globe.
CAT Design hopes buyer interest in its latest apparel launch The Toob will translate into a string of orders in time for summer.
One of Asia?s biggest airlines, Cathay Pacific Airways, has signalled its intent to improve crew communications to drive up sales in one of its ?safe? but under-performing product categories.
By Kevin RozarioFollowing a redesign of Abu Dhabi Duty Free?s (ADDF) main optical store last year, sales of some of its top brands have soared, including runaway best-seller Ray-Ban.