Cover Stories

INTERNATIONAL. Dufry Group will target organic growth in its existing operations and expand into new trading channels in a bid to grow its worldwide business, according to global chief operating officer José Antonio Gea
UK.World Duty Free (WDF) has revealed plans for a rolling programme of renovation at its flagship location, London Heathrow airport

People & Company

As first revealed by DFNI website RavenFox.com (Oct 5), BAA has promoted senior UK retail executives Mark Riches and Colin Hargrave, giving them new responsibilities
Diageo Global Duty Free managing director Vince Horne is to retire on January 14 next year
Fairn & Swanson has restructured its senior management team
The annual conference of the Middle East Duty Free Association (MEDFA) will be entitled Growing the Business Together and will focus on the growth of travel-retail in the Middle East

Features

When suppliers are asked to name a retailer they admire, BAA retail subsidiary World Duty Free is among those most frequently cited. The UK operator is working on a host of new initiatives, not to mention the eagerly-awaited terminal five at London Heathrow. John Rimmer talks to outgoing BAA group retail director Brian Collie and World Duty Free CEO Mark Riches
Tel Aviv Ben Gurion airport's new international terminal was due to open in 2000. Despite the delay, bidding for retail contracts at the facility was intense. On the eve of the terminal's opening, James Richardson duty-free division chairman Garry Stock explains his company's commitment to the market. By Gavin Lipsith
A troubled year for French travel-retail has not dampened operator Aelia's determination to expand. The Paris-based retailer has a mandate to grow from parent Hachette Distribution Services, and Aelia managing director Michel Perol aims to rise to the challenge. John Rimmer reports
As Lancaster Group parent company Coty reaches the milestone of 100 years in beauty, Tina Milton investigates its strategy for travel-retail
Continuing its reputation for entrepreneurial zeal, Duty Free Americas owner the Falic Group is building a new stronghold in Central and Latin America. In a candid interview, president Leon Falic talks John Rimmer through the company's strategy
After the trials of the past few years, Zürich airport authority Unique must be delighted that its ambitious Airside Center project has been completed without a hitch. Gavin Lipsith speaks to Unique head of marketing and real estate Peter Eriksson and The Nuance Group CEO for Europe Carlo Bernasconi about planning retail at the airport's new commercial facility
The experiences of King Power Group (Hong Kong) in 2004 could not contrast more with those in 2003, when SARS hit the business hard. This year, new contracts at Singapore Changi airport and an exciting new inflight alliance point to a bright future for one of Asia's powerhouse retailers. Dermot Davitt reports
Turkey's burgeoning tourist trade and the government's strategy of encouraging private investment with build-operate-transfer airport contracts are set to modernise the country's duty-free market. Tina Milton reports on plans for Turkey's airport infrastructure and talks to the companies that are keen to be part of it
Although airports on the North American west coast have developed rapidly, their retail offers are not noted for their dynamism. All that is changing, says Gavin Lipsith
In the hands of airport management group East Line, Moscow Domodedovo is giving its more established cross-town rival Sheremetyevo a lesson in how to run an international airport. And retailers are seeing the benefits. Gavin Lipsith charts the airport's progress
Despite a decision to end retail sales on short-haul routes, Air France's onboard retail programme remains one of the prime features of the airline's long-haul service. Lorna Strickland talks to the operator at its Paris Charles de Gaulle headquarters about its unique approach to inflight retail
Nordic governments have been slashing liquor taxes in an effort to keep the Scandinavian domestic market afloat. Good news for the region's drinkers, but a potential disaster for travel retailers, who are reassessing assortments to protect their business. Lorna Strickland investigates
As the fragrance market continues its love affair with flankers, are retailers and consumers receiving the innovation that they crave? And is a return to classic fragrances on the agenda? Tina Milton reports
Beauty brand L'Occitane established its travel-retail business over three years ago in the Asia/Pacific region, but only launched its full-scale European strategy this year. Tina Milton reports on the brand's progress and strategies for future growth
Over the past 50 years Marlboro has become one of the world's most recognised brands, and recent changes in brand owner Philip Morris's duty-free strategy indicate that the company has recognised the true value of the channel as the ultimate brand marketplace. In his first-ever interview in the role, Philip Morris International worldwide duty-free managing director George Farah tells Gavin Lipsith why he believes he has the best job in the company
A proposal to ban duty-free tobacco sales in Malaysia could spell problems for the country's travel retailers. And with valuable tenders imminent at Kuala Lumpur International airport, the government may need reminding of the damage a ban could cause
Richard Ferne's departure from Brown-Forman this summer has prompted a hiatus in the career of one of duty-free liquor's most passionate ambassadors. He shares his views on the liquor business past, present and future with John Rimmer
Swiss watch supplier Swatch Group has long been a dominant name in the travel-retail sector. Lorna Strickland talks to group head of travel-retail Christophe Savioz about his plans for the brands
Gold jewellery is taking an ever larger share of the duty-free market in the Middle East, helped by investment from retailers and product innovation from suppliers. Lorna Strickland investigates
A first duty-free shop-in-shop for Swiss writing instruments company Caran d'Ache marks the beginning of a bid to steal some of the limelight from market leader Montblanc. Kevin Rozario reports from its opening in Zürich
ACI Europe director-general Philippe Hamon has been at the heart of airports' attempts to make their voice heard at national and international level. On the eve of his retirement he speaks to Dermot Davitt about the highs and lows of his career in Brussels and why retail is central to the growth of airport capacity

Retail News Analysis

CONGO. Duty Free Shop Alima plans to expand its portfolio of four stores in 2005
DENMARK. MyTravel Airways Northern Europe has claimed an impressive first season's sales on board flights on its new route from Denmark to Bulgaria
CANADA. Vancouver International airport has reported strong gains in transborder sales to passengers flying to the US
CANADA. Halifax International Airport Authority (HIAA), which runs Canada's seventh-biggest airport, is pressing ahead with the next phase of its 10-year C$220m ($175m) airport improvement programme, much of which will involve the development of a new international departures zone with added retail areas
SWEDEN. The Swedish government will review its liquor tax policy next year, DFNI has learned. The policy was to be re-examined this year but, in the recently announced budget for 2005, the government deferred a decision until the 2006 budget
BELGIUM. Belgian Sky Shops has reported strong growth at Brussels South Charleroi airport, despite the loss of Ryanair's service to London Stansted
ECUADOR. Duty Free Ecuador (DFE) opened its expanded and relocated 600sq m (6,455sq ft) departures shop at Simon Bolivar airport in Guayaquil on October 2
THAILAND. Inflight Sales Group Hong Kong (ISG) has won the contract to operate duty-free on board Thai airline Phuket Air
TURKEY. Travel retailers are set to benefit from a surge in investment in Turkey's airports as the Turkish State Airports Authority (DHMI) continues to roll out build-operate-transfer (BOT) contracts
IRELAND. Aer Rianta was renamed Dublin Airport Authority on October 1, under the terms of the state airports group's break-up
Pedro Methol, general manager of Bernabel Trading, the purchasing arm of Uruguayan duty-free operator Zeinal Hermanos, died last month
UK. UK Customs has introduced new legislation to prevent abuse of the VAT Retail Export Scheme, under which visitors from outside the EU can reclaim VAT on purchases made in the UK
ASIA/PACIFIC. The Asia Pacific Travel Retail Association executive committee is to present the results of its discussions on membership, strategy and communications at a meeting at the TFWA World Exhibition in Cannes this month
At a press briefing last week, the European Travel Retail Council (ETRC) made its first concerted attempt to rally the region's industry round its latest representative body
US. Leading travel retailers from around the world met on October 13 to discuss the future of duty-free retail at Miami International airport (MIA)
SWITZERLAND. Zürich airport authority Unique and retailers at the new Airside Center, including duty-free concessionaire The Nuance Group, have launched a marketing campaign for the facility following its inauguration last month
CARIBBEAN. Spanish operator Aldeasa has won the tender to operate the retail concession at Curaçao International airport
UK. Alpha Airports Group last month launched Alpha Heroes 2005, an awards scheme open to all 4,000 of its UK, Ireland and Jersey-based employees
As the duty-free trade prepares to celebrate 20 years of the TFWA World Exhibition, this seems an appropriate moment to reflect on this most cyclical of industries
INTERNATIONAL. Dufry CEO Julián Díaz and Dubai Duty Free managing director Colm McLoughlin will be two of the key speakers to appear at the 2005 Global Travel Retail Summit in London on February 3-4
BARBADOS. Duty Free Caribbean (DFC) plans to bolster the presence of its Colombian Emeralds franchise in Barbados with two new stores
EUROPE. The travel-retail industry needs to overcome the negative stereotyping that legislators still associate with it if it is to lobby effectively at government and regional level
The Raven Fox Ball in 2005 will benefit those affected by the September siege at a school in Beslan, southern Russia, in which hundreds of people - many of them children - were killed
CARIBBEAN. The Bared Group of Companies is to complete the refurbishment of its Perfume Palace chain next month, in time for the Caribbean high season
US. Fairn & Swanson's retail division Baja Duty Free opened its first store in Brownsville, Texas, on the US-Mexico border in late August
UAE. Dufry Emirates, the anchor duty-free retailer at Sharjah airport, is to benefit from a substantial renovation that will expand its retail space to nearly 2,000sq m (21,520sq ft)
UAE. Dubai Duty Free remains on course for another sales record after posting a year-on-year increase of 36% for the first nine months of the year
GREECE. Hellenic Duty Free Shops has opened a new store at Athens Spata airport. The shop is in the airport's departures terminal in the Schengen zone and will stock clothing and accessories from fashion houses such as Burberry, Ermenegildo Zegna, Céline, Lacoste and French Connection
FINLAND. Helsinki-Vantaa airport has extended the retail space in its passenger terminal and rebranded all areas. Three retail areas - Avenue, Boulevard and Galleria - were adapted and extended in September
CENTRAL AMERICA. Fast-growing duty-free operator Duty Free Latin America (DFLA) is planning several border and hotel store openings across the region in the coming months
NORWAY. Oslo airport officials are confident that the government will accept proposals to introduce arrivals duty-free shopping when it unveils its 2005 budget in early December
CANADA. Aer Rianta International-North America (ARI-NA) has strengthened its team with the appointment of Philip Eckles as operations director on a two-year contract.
US. Seattle-Tacoma International airport (Sea-Tac) has overhauled its concession programme, ending HMS Host's 40-year reign as the airport's exclusive retail and food and beverage tenant
ALASKA/PUERTO RICO. SMT Puerto Rico's new port store in Ketchikan, Alaska, has opened following a delay caused by Customs procedures
TURKEY. Duty-free sales at Istanbul Atatürk International airport have risen by 20% in the year to date compared with the same period in 2003, the group that operates the concession has told DFNI

Liquor & Wines

The premium blended Scotch whisky category is growing strongly in key Asia/Pacific and Latin American markets, according to a survey of duty-free operators and suppliers published in Travel Retailer International October/November, out now
Underberg is unveiling a wide range of new line extensions and gift packs in Cannes later this month. Asbach A&A is a new 19% abv brandy-based liqueur made from a combination of the company's Asbach brandy and a German white wine called Riesling Auslese
Brown-Forman will introduce a mango-flavoured line extension to its range of Finlandia vodkas at TFWA World Exhibition
DFS Singapore has emerged as the cheapest operator in a global comparison of liquor prices published on five airport shopping pre-order websites, DFNI can reveal
Pernod Ricard plans to double volumes of Chivas Regal 18yo following the reference's global relaunch last month
Diageo plans to roll out its super-premium vodka brand Ciroc to selected international hub airports later this year
Bacardi is extending its range of Dewar's whiskies at TFWA World Exhibition with two new super-premium references, Founder's Reserve 18yo and Signature.
UK-based absinthe manufacturer La Fée has introduced a new absinthe produced in the Czech Republic
V&S Absolut Spirits will introduce another flavoured Danzka vodka to global duty-free markets at this month's TFWA World Exhibition
Fijian operator Tappoo Group has doubled wine sales at its stores at Nadi International airport this year
Independent cognac house Camus is to unveil a new global advertising campaign at TFWA World Exhibition this month
At TFWA World Exhibition Morrison Bowmore will be exhibiting what it claims is the oldest and most expensive Lowland single malt whisky ever produced
In a bid to push back the boundaries of what can be achieved with spirits miniatures, Whyte & Mackay is unveiling a limited-edition miniature filled with rare The Dalmore 50yo Scotch whisky in Cannes this month

Tobacco Products

Dutch small cigar supplier Agio is to introduce its latest extension to the Mehari's line of flavoured cigars at the TFWA World Exhibition in Cannes
Cigars are becoming an increasingly important part of Aelia's duty-paid tobacco offer, according to managing director Michel Perol
Travel-retail lobbyists have warned that a proposal to ban duty-free tobacco sales in the country could be "very serious"
Imperial Tobacco is to unveil a new carton for the Davidoff brand family flagship, Magnum
Philip Morris International has defended its pricing policy, arguing that regional price differences are beyond its control
Alfa Brands has launched the latest offer from cigar supplier Ashton to travel-retail markets worldwide
Specialist tobacco supplier Von Eicken will be presenting a range of new products across the cigar, cigarette and ryo tobacco segments when it exhibits at TFWA World Exhibition later this month
As DFNI went to press, the EU's deadline loomed for UK Customs authorities to back down over their policy of confiscating the vehicles and goods of suspected smugglers
Australia goes to the polls: Duty-free tobacco in Australia has been granted a stay of execution

Fragrances

L'Oréal Luxury Products Division has unveiled Flowerbomb, the first women's fragrance from Dutch team Viktor Horsting & Rolf Snoeren
Cosmetics and skincare are becoming the key categories driving sales at Istanbul Atatürk International airport
As revealed on Raven Fox website RavenFox.com, World Duty Free (WDF) has opened a new fragrances concept at London Heathrow terminal one. CEO Mark Riches told DFNI that the concept would focus on customer service, with a high level of consultant support
Estée Lauder has introduced the first travel-retail exclusive version of its eponymous fragrance brand. Pleasures Exotic will be a limited edition available for one year

Cosmetics

L'Occitane International plans to open at least 10 locations across Europe over the next year and has already gained several sites to help achieve its goal
Lashes of mascara: Schiapparelli Pikenz has unveiled three restyled mascara lines for the autumn/winter season from its Arrogance cosmetics range
US cosmetics brand Smashbox is to make its inflight debut with concessionaire Alpha Inflight Retail. MyTravel, BMI and Excel Airways will be the first airlines to list the products, starting in November 2004
AGGF Cosmetics Group has revamped the Diego Dalla Palma cosmetics brand and the new look will be presented for the first time at TFWA World Exhibition
Cosmetics sales at Split airport in Croatia enjoyed an increase of 77% during the first nine months of 2004 compared with the same period last year
Skincare brand Freeze 24/7 is planning to enter the duty-free market, having launched in domestic markets in the US at the end of 2003

Confectionery & Fine Foods

Lindt & Sprüngli believes its joint initiative with The Nuance Group at Zürich airport can set new standards in "theatre and excitement" in travel-retail
Cadbury Schweppes International Travel Retail will turn the spotlight on its sugar brand, Bassett's, in Cannes
Caffè Florian, which has established a reputation for gourmet food, design collections and generating elegant lifestyles over almost three centuries, is to make its first appearance at the TFWA World Exhibition in Cannes later this month
Rocky Mountain Chocolate Factory (RMCF) master licensee Brian Kerzer, who opened a store at Toronto Lester B Pearson International airport this summer, is seeking to expand the concept's presence at airport locations and has held informal discussions with several European contacts
The latest Milka launches from Kraft Foods World Travel Retail Division in Cannes (Riviera Village, stand RG 5) this month are designed to reinforce its number-two rating behind flagship brand Toblerone
Storck Travel Retail, encouraged by the success of a metallic copper look for its Toffifee 400g packs, is ready to launch a 200g copper pack of 24 pieces in a crunchy hazelnut, caramel, creamy nougat and dark chocolate recipe
Biscuit maker Tante Agathe has redesigned its packaging for Les Raffinées and Les Boîtes Gourmandes, focusing more on the product's Swiss origins and offering a "more contemporary, refined and prestigious look" in readiness for Cannes (Yellow Village, stand D23), according to the company
Nestlé International Travel Retail (NITR) is capitalising on its relationship with Disney, recently strengthened through a five-year extension, by introducing a raft of new children's gifts at the TFWA World Exhibition in Cannes this month (Golden Village, stand 3)
Swiss Delice will mark seven years in travel-retail with seven new products in Cannes (Red Village, stand K19), primarily in its pralines selection where four new 150g packs are included: Noxana, Noir, Giandor and Mahony
Foie gras specialist Rougie has called on the talents of one of France's best-known young chefs to promote a new recipe to be unveiled in Cannes (Riviera Village, stand RA5)
Godiva Chocolatier has responded to what it believes is a ?more quality, less quantity? culture influencing consumers when they eat chocolates with the launch of its Caramel Nouveau Collection and a makeover for Caraques
The booming coffee and café culture has prompted Toms Confectionery to launch Chocolate Coffee Dreams by Anthon Berg

Gifts & Electronics

Danish travel-retail toys supplier Uniset has bought out England-based travel-retail toy supplier Hawkswell
Electronics sales at Singapore Changi airport have achieved double-digit growth over the last two years, making the product category the third biggest at the airport. Dufry Group is the anchor electronics retailer at the location
US mobile phone supplier and retailer PalmOne has opened three outlets in US travel-retail
Danish toy supplier Lego is launching a new inflight retail exclusive, the Lego Vintage Aircraft set

Jewellery & Watches

Swiss watch supplier Rotary will launch its Revelation Latins models at TFWA World Exhibition
Sanford Group writing instruments brands Parker, Waterman and Rotring will be launching new items at the TFWA World Exhibition in Cannes
Greek jewellery and fashion accessories brand Folli Follie is looking towards the French market in 2005
Misaki heads for romantic autumn
German jewellery supplier Thomas Sabo aims to make further inroads into the travel-retail market by responding swiftly to changes in consumer tastes. Lorna Strickland talks to the supplier about its strategy
Supplier Sunstone's latest jewellery brand Vanessa Michaels will be present at the TFWA World Exhibition (Blue Village B4) after an auspicious start to its travel-retail activity at the Americas and Singapore shows earlier this year

Fashion & Leathergoods

Sports apparel and swimming brand Speedo is to be relaunched in global travel-retail at TFWA World Exhibition in Cannes
Although the 45 new or returning companies at this year's TFWA World Exhibition include 14 fashion companies, the fashion sector's presence at the show has only increased by 1% to 16%
Porsche Design has proclaimed a new era for the company as it consolidates its retail brands into a single, high-end accessories marque and gears up for an onslaught on the travel-retail market that involves stand-alone stores
Eyewear manufacturer Charmant Group, which has cornered the market in German fashion branded sunglasses, has dropped its duty-free agency deal with Meiser Consult and is now targeting the travel-retail market directly from its headquarters in Munich, Germany
The decision by Charmant to take its duty-free operations in-house has had a calamitous effect on Meiser Consult, the German agent and distributor that specialises in the sunglasses sector
French boutique fashion and couture house Francesco Smalto is exhibiting at Cannes for the first time with a view to internationalising its business
Alfred Dunhill has made rapid progress in Asia following last year's decision to invest in travel-retail again. Kevin Rozario gets an exclusive progress report from Alfred Dunhill Asia Pacific CEO John Durnin
A new concept store focused on fashionable women's footwear has opened at Singapore Changi airport terminal two
US fashion brand Liz Claiborne is introducing a range of handbags and small leathergoods for travel-retail at TFWA World Exhibition in Cannes this year to complement its branded jewellery collections
After an absence of two years Richemont Group-owned leathergoods brand Lancel is back at the TFWA World Exhibition with a renewed strategy for the channel
The Scene, the night-time social centre of TFWA World Exhibition, will be supported by a fashion house for the first time this year
French high-end fashion house Hermès will open its second stand-alone airport store in the German market this month, giving the brand a strong presence at Germany's two main hubs

Special Reports

DFNI looks back at one of the liveliest ASUTIL events in years. By John Gallagher
A good performance in some sectors in 2003 and positive figures for the first half of 2004 present an encouraging picture for the travel-retail industry. Sandra Newman looks at global sales trends