Cover Stories

CHINA. The Chinese travel-retail market took a big step towards liberalisation this month when Beijing Capital International airport (BCIA) launched a tender to operate duty-free at the location
SCANDINAVIA. Finnish investment group CapMan has acquired a majority stake in Swedish retailer and distributor Inflight Service

Insight

According to the stereotype the best way for retailers to target travelling consumers over the age of 50 is with a bottle of sherry for women and a fine cigar for men
Swedish analyst Generation has hailed the travel-retail industry's 2004 performance as its best in 20 years. Last year's recorded sales increase of $4.5bn—more than 22%—is certainly encouraging. But a closer look shows a more complex picture
As divorces go, it's an amicable parting of the ways. King Power Group (Hong Kong) and China Duty Free Group (CDFG) are to end the joint purchasing agreement they created through the China Power venture in 2001, but both parties insist they will continue to cooperate on new business opportunities in China and elsewhere
It is difficult to avoid developing an apocalyptic mindset when cataloguing the myriad threats to the travel-retail industry
The July 7 bombings in London provided an unwelcome reminder of the uneasy climate in which we all live and trade

People & Company

L'Oréal Luxury Products Division Travel Retail Worldwide merchandising director Michel Bettenfelt has retired after 36 years with the company
William Grant & Sons has appointed James Doherty as regional director developing markets
Registration has opened for the 21st TFWA World Exhibition, which will be held in the Palais des Festivals in Cannes from October 31 to November 4
London Luton airport managing director Paul Kehoe has resigned
Interest is mounting in the Baltic and East European Travel Retail Conference, to be held in St Petersburg, Russia on November 23-25 this year
Finlandia Vodka invited 300 guests to the wilds of Lapland last month to celebrate the Midnight Sun—the 24-hour daylight enjoyed by northernmost countries during the height of summer

Features

Although most travel retailers would admit that the first half of this year has been more positive than in recent years, few are bold enough to predict that 2005 will be a "banner year"
Wray & Nephew believes its Appleton Estate rum has the credentials to become a global brand. Joe Bates travelled to Jamaica to discover why the island's leading supplier is so confident of success
With the installation of a state-of-the-art IT system and plans to develop its product portfolio, distributor Ocean Trading is preparing a fresh push into Europe. Tina Milton reports
The leather accessories sector is enjoying a renaissance in travel-retail. The category promises much for the future, but can it deliver? Kevin Rozario finds out
Luggage suppliers have tried to transform the sector's image from utilitarian and dull to fashionable and funky. But is this what customers really want? Kevin Rozario reports
A wave of airport renovation in the Caribbean is changing the face of the region's travel-retail industry. DFNI assesses recent developments in the market
Cruise spa and retail concessionaire Harding Brothers has made a big investment in training, starting with the opening of its academy in August 2004. The benefits to passenger satisfaction and onboard revenues are already evident, insists director Harold Gittelmon. By Gavin Lipsith

Retail News Analysis

MEXICO. Following a long running rent dispute between duty-free operator Dufry Mexico and airport authority Grupo Aeroportuario del Sureste (ASUR), the International Court of Arbitration has instructed Dufry to pay $3.7m in unpaid rents to the landlord
UGANDA. Uganda Duty Free Sales is planning to renovate its three duty-free stores at Uganda Entebbe airport over the next six months
Brazilian low-cost airline Gol has signed a memorandum of understanding to enter the Mexican aviation market
NEW ZEALAND. Fashion and fine foods retailer Kiwi Discovery is to extend its operations at Auckland International airport later this year
UAE. Dubai Duty Free has reported half-year sales of $283m, up by 19% on the same period last year
INDIA. Zürich airport authority Unique is to determine the layout of commercial space at the new Bangalore International airport in the next few months, DFNI has learned
UK. Passengers spend more on duty-free than any other airport expense, according to a new UK survey commissioned by Morgan Stanley Consumer Banking
CYPRUS. On July 8 the Cypriot government and the Hermes consortium completed the first phase of negotiations for the 25-year build-operate-transfer contracts for Larnaca and Paphos airports
SWITZERLAND. Despite the disappointment of losing the bid for Aldeasa, Swiss travel retailer Dufry Group posted strong sales growth in 2004 and is continuing to look for opportunities to expand, the company told DFNI
TURKEY. National airports administration DHMI is close to upholding a request to distribute passenger traffic between Antalya airport terminals one and two more evenly, DFNI has learned
POLAND. The Polish government is to sell its remaining 26.8% stake in former state-owned travel retailer Baltona
UKRAINE. Kievrianta has reported a 44% year-on-year increase in first-half sales at its Kyiv Duty Free departures store at Boryspil airport
NETHERLANDS. Amsterdam Schiphol concessionaire Kappé International has opened the airport's first Bijoux Terner store in the Schengen lounge
SERBIA. Some of Europe's top operators are preparing bids for the master retail concession at Belgrade International airport
MEXICO. Airports operator Grupo Aeroportuario del Sureste (ASUR) has reported growth in commercial revenue and spend per passenger in the first half of the year, driven by increases in passenger traffic across its network of airports in southeast Mexico
UK. Cruise concessionaire Harding Brothers has continued to strengthen is management team with the appointment of new directors in financial and logistical roles
SWITZERLAND/FRANCE. Basel-Mulhouse airport is seeking retail tenants for several outlets in the French and Swiss areas of the terminal, both landside and airside
ITALY. Italian retailer Airport Elite plans to open two duty-paid stores and one duty-free outlet at Treviso airport near Venice next year
Time is running out for companies wishing to attend this year's ASUTIL conference to qualify for a discounted "early bird" delegate rate, applicable if they register before the end of July
MALTA. Air Malta is seeking to offload its 100% holding in Air Supplies & Catering after initially aiming to sell a 60% share in the company (RavenFox.com January 14)
UK. The Nuance Group's distribution business Ocean Trading plans to expand its operations into Europe after the recent implementation of an upgraded computer system

Liquor & Wines

As reported on RavenFox.com, shareholders of UK drinks company Allied Domecq have agreed to a takeover offer from Pernod Ricard and Fortune Brands
Alpha Retail plans to install a white spirits wall in its refurbished store at Manchester airport's terminal two later this summer
The Nuance Group sold the first of the five bottles of L'Esprit de Courvoisier it is offering at its Vancouver International store last month
Another high-profile Bombay Sapphire art installation has opened at a major international airport
More liquor news

Tobacco Products

The tobacco category recorded the strongest growth in global duty-free and travel-retail sales for many years in 2004, according to Swedish market analyst Generation's annual publication Best 'N' Most
Cigar supplier CAO is to introduce its ninth premium cigar line at next month's RTDA Annual Convention and International Trade Show in New Orleans
British-American Tobacco (BAT) has unveiled its new-look Dunhill cigars and premium cigarettes at Dubai Duty Free
More tobacco news
UK tobacco supplier Gallaher has reported a 3.9% increase in global volumes in the first five months of the year despite tough trading conditions in the European travel-retail market
Japan Tobacco International (JTI) is to roll out new packaging for its Mild Seven cigarette brand, incorporating the "blue wind" symbol originally launched in its home Japanese market in 2003

Fragrances

Lancôme unveiled its newest fragrance for women, Hypnôse, at a glittering launch party in Paris earlier this month
Italian retailer Airport Elite has opened two fragrance stores of 100sq m (1,076sq m) and 80sq m (860sq ft) at Bari-Palese airport
Unilever Cosmetics International (UCI), soon to be acquired by Coty, has unveiled the next key women's fragrance from Calvin Klein
Paco Rabanne's BlackXS will be among a number of new additions to the Puig Group's Asia/Pacific portfolio, which are scheduled for launch during the second half of 2005

Cosmetics

Estée Lauder brand Jo Malone opened its first airport store at London Heathrow terminal three earlier this month with retail partner World Duty Free
Customer demand has spurred Nuance-Watson (HK) to introduce P&G Beauty-owned SK-II at one of its Temptation stores in the East Hall of Hong Kong International airport
L'Oréal Luxury Products Division is considering its options for the introduction of skincare brand Kiehl's to travel-retail. International director of travel-retail worldwide Vincent Boinay told DFNI that the supplier had "big plans" for the brand in the airport channel

Confectionery & Fine Foods

Jelly Belly Candy Company, which develops and manufactures the Harry Potter-inspired Bertie Bott's Every Flavor Beans in the US for Hasbro subsidiary Cap Candy, has been awarded exclusive distribution rights in the US and Canada for two new packs
Masterfoods International Travel Retail (MITR) has gained new customers in Europe following the launch of pouches, or standing bags, of Minis and M&M's at last year's TFWA World Exhibition
Ambassador Duty Free Store, which operates at Ambassador Bridge in Windsor, Ontario, hopes that an extensive promotions programme will boost its recovery following a downturn in confectionery sales.
DFNI understands that Caviar House has finally resolved the legal issues raised by its planned merger with fellow caviar specialist House of Prunier and an official announcement is expected shortly

Gifts & Electronics

Alpha Retail plans to restructure its electronics offer at UK airport locations as part of an extensive refurbishment programme
Dutch brewer Heineken is planning to introduce a range of branded gifts to be sold independently or alongside its beer products
More gifts and electronics news
Swiss watch and accessories supplier Police is introducing a new range of products aimed at gift-buyers specifically for duty-free in an attempt to diversify into other sectors
Global electronics supplier Kensington has unveiled a line of travel-related gadgets and accessories for domestic and duty-free markets and is determined to expand its travel-retail presence this year

Jewellery & Watches

Gant Time is to unveil a range of watches at lower prices later this year
Swiss watch supplier Frédérique Constant is to develop a collection of women's watches to complement its men's range
Retkie, the duty-free licensee for Fila sports watches, is planning to move into the luxury watches market
UK cruiseship concessionaire Harding Brothers has launched an in-house training programme in a bid to ensure that it has a consistent source of jewellery sales staff
Branded watch and accessories supplier Police is to launch its first jewellery collection in domestic and duty-free markets

Fashion & Leathergoods

Luggage with powered wheels could enter the travel-retail market when a new concept, Live Luggage, is launched in November
More fashion news
Hugo Boss is close to announcing a deal to open the German fashion brand's first leathergoods-only store in travel-retail
Porsche Design opened its first corner in Middle East travel-retail at Dubai International airport at the end of June