Cover Stories

UK/SPAIN. As Grupo Ferrovial looks set to take control of BAA, speculation in the industry is mounting over the future of the UK airports group's retail subsidiary World Duty Free
MACAU. DFS Group president and CEO Ed Brennan and his senior executive team have shown their support for Raven Fox's Asia/Pacific Travel Partnership Symposium by becoming the inaugural event's premier sponsor

Insight

Recent announcements from The Nuance Group, India Tourism Development Corp (ITDC) and Flemingo International underline the important role that cooperation between retailers will play in the development of India's duty-free market
Speculation recently in the Spanish press indicates that one of Europe's great national airport networks could soon come under new ownership
Estonian ferry operator Tallink is preparing to add to its route network this summer following confirmation earlier this month that it will buy Baltic rival Silja Line from US owner Sea Containers for €450m ($610m
Earlier this month the European Union announced it was to bring charges against Sweden's government-owned liquor monopoly Systembolaget for violating the principles of free trade
Following the recent takeover bid by Grupo Ferrovial, BAA executives have been assured that the Spanish company has no plans to disrupt senior management. But what are its plans for the UK airports group's retail operations? DFNI examines its options
In DFNI June 15 1992 we reported on the creation of a retail partnership that has stood the test of time: the joint venture between DFS Group and Japan Airlines (JAL)

People & Company

More people & company news
Publisher Raven Fox has named the new editor of Duty-Free News International magazine, the travel-retail industry's leading title

Features

Dimensi Eksklusif Sponsored by Protégé International
King Power Group (Hong Kong) Singapore Changi airport Sponsored by Nestlé International Travel Retail
"Sin taxes", duty-free abolition and the threat of price harmonisation add up to greater pressure on tobacco retailers. DFNI examines how operators are responding to the challenge
As luxury brands from all over the world turn their attention to China, several of the country's leading cigarette suppliers are taking advantage of booming outbound travel to build their international presence. And interest is not confined to Chinese travellers, writes Gavin Lipsith
Despite political instability and security concerns among Jordan's neighbours, land-based duty-free retailer Jordanian Duty Free Shops has taken advantage of the buoyant economy to build a growing business. Emily Pacey talks to the company about its recent store refurbishments and plans for the future
It's been a while coming, but airport duty-free is about to make its debut in Saudi Arabia. As the world's leading retailers jockey for position, John Rimmer reports on the race for dominance in one of the world's biggest untapped markets
Recent contract gains at Hong Kong's ferry terminals and rail border crossing may mean that Sky Connection will need a new name to better reflect its expanding business. Its latest concessions offer a chance to explore other product sectors but despite mounting restrictions on tobacco sales, the retailer says cigarettes will remain a cornerstone of its business. Gavin Lipsith reports
King Power Group (Hong Kong) Singapore Changi airport Sponsored by Pica LéLa by Wellington Jeweller
Nuance-Watson (Singapore) Glam Up, Singapore Changi airport T1 Sponsored by Hugo Boss
Aqva pour Homme by Bvlgari Parfums Sponsored by Eraman Malaysia
Arrivals duty-free in the Middle East has long been overshadowed by the region's thriving departures business, but recent initiatives have led to rapid growth in the channel. John Rimmer discovers how retailers are seizing a previously neglected opportunity
Since 1998, the Raven Fox Awards for Travel Retail Excellence in Asia/Pacific have sought to honour the companies setting the agenda in the regional industry. Year after year, the voting illustrates the quality of retailing in the global trade's most dynamic market, and our Roll of Honour reflects the best of Asia over recent years. Here DFNI looks back at the winners since 2002.
Now in their ninth year, the Raven Fox Awards for Travel Retail Excellence in Asia/Pacific have become a fixture of the TFWA Asia Pacific show in Singapore, and once again attracted a big crowd to the presentation in the Suntec Centre on May 17
King Power International Group (Thailand)
Dubai Duty Free Sponsored by Masterfoods Celebrations
L'Oréal Luxury Products Division Travel Retail Asia (Scental) Sponsored by Nuance-Watson (HK)
Civil Aviation Authority of Singapore Sponsored by King Power International Group (Thailand)
Cathay Pacific Airways Sponsored by Toscow
Sky Connection Sponsored by Rémy Martin

Retail News Analysis

FRANCE. Aelia has won the retail tender at Marseille Provence airport's new low-cost terminal, MP2, which is to open in September
ESTONIA. Estonian ferry operator Tallink has confirmed it will buy rival Silja Line from US owner Sea Containers but Tallink said it has no plans to merge the two operators' duty-free buying divisions
US. Atlanta Hartsfield-Jackson International airport has re-tendered the duty-free concession at the airport's concourse E
DENMARK. The deadline for bids in the duty-free tender at Copenhagen Kastrup airport, launched earlier this year, passed on June 6. Up to eight retailers are believed to have submitted bids
Winnipeg International airport's new common-use terminal is to shift the bulk of its retail offer post-security to improve penetration rates
NORWAY. Travel Retail Norway (TRN), the joint venture between local beauty retailer Ésthétique Norge and Gebr Heinemann, has reported a 90% rise in total sales for the first four months of 2006 compared with the same period last year
MALAYSIA. Malaysia Airlines (MAS) has begun searching for a back office systems provider for its inflight services division MAS Golden Boutique (Raven Fox.com June 5)
HONG KONG. Cathay Pacific has announced aggressive plans to expand in mainland China through acquiring rival Hong Kong carrier Dragonair and doubling its holding in Air China to 20%
HONG KONG. Sky Connection has been awarded the contract to operate arrivals outlets at Hong Kong ferry terminals serving Macau and the Pearl River Delta region
AMERICAS. Dufry Group posted strong sales growth in the first quarter of 2006, reporting turnover of SFr244.8m ($202.3m) compared with SFr196.2m ($162.1m) in the first three months of 2005
SPAIN. The Spanish government is under increasing pressure to clarify the future model of AENA, the country's airport authority, as construction work at the extension to Barcelona's El Prat airport continues
SAUDI ARABIA. The deadline for pre-qualification in Saudi Arabia's first airport duty-free tender passed on June 7
BOLIVIA. Spanish infrastructure specialist Abertis has denied that it will abandon the management of Servicios de Aeropuertos Bolivianos SA (SABSA), the airport management company that operates the Bolivian airports of Santa Cruz, Cochabamba and La Paz El Alto
ARGENTINA. FIFA World Cup promotions at InterBaires outlets have helped the operator to maintain sales momentum in April and May after a strong start to the year
INDIA. The Nuance Group has signed a memorandum of understanding with Indian domestic retailer Shoppers' Stop with a view to creating a 50:50 joint venture to bid for duty-free contracts at Indian airports
US. The new law requiring travellers across US borders to carry passports could be postponed until July 2009, allowing retailers more time to educate their customers

Liquor & Wines

Whyte & Mackay has unveiled The Dalmore Single Malt, a rare 50yo travel-retail exclusive
Two experienced drinks executives have launched a new super-premium rum brand, Elements Eight Rum, in partnership with Caribbean company St Lucia Distillers
Tortuga Rum Co, Grand Cayman's biggest duty-free liquor retailer and distributor, has recorded significant sales increases following the refurbishment of five of its 16 stores
US retailer Taste Inc has won a five-year contract to open a Vino Volo wine bar and store at Sacramento International airport terminal A
Scotch whisky merchant Duncan Taylor & Co has launched a range of seven aged single malts from famous distilleries

Tobacco Products

Hong Kong retailer Sky Connection will urge its suppliers to place more emphasis on travel-retail presentation as it seeks to improve the appearance of its cigarette offer in the face of tight tobacco marketing regulations
The Turkish government is set to make a third attempt to offload the cigarettes division of state monopoly Tekel, which controls a 40% share of the Turkish tobacco market
Premium cigar supplier Davidoff has launched the first cigarillo product in its Griffin's line of cigars from the Dominican Republic
Gold Bond Enterprises is to tempt European passengers to try premium Chinese brand Chunghwa by developing its presence at key European airports. Gold Bond, which represents the Shanghai Tobacco Corp brand in European travel-retail, has increased its presence in the market this year with listings at Lisbon and Munich airports, taking its total portfolio of European airports to eight

Fragrances

French travel retailer Aelia is stepping up its strategy of offering beauty products designed especially for the operator with the launch of men's fragrance Jetlag by Azzaro
US beauty company Parlux Fragrances plans to unveil several products in travel-retail markets this year. It hopes to secure a presence for men's fragrance Guess Man with Nuance-Watson (HK) at Hong Kong International airport, and with Nuance-Watson (Singapore) at Changi airport, within three to six months
Cécile et Jeanne plans to roll out its fragrance Eliel to worldwide travel-retail markets after establishing its presence in France. At present the fragrance is available in travel-retail only in the company's stand-alone store at Paris Orly airport

Cosmetics

As revealed in DFNI May 15, Nuance-Watson (HK) and L'Oréal Luxury Products Division Travel Retail Asia (Scental) have opened the world's first Kiehl's airport store, in Hong Kong International airport (HKIA)'s terminal one East Hall
Smashbox Cosmetics is to make its debut in Canadian border stores this month. Initially, products will be available at Peace Bridge Duty Free, Importations Guay, Windsor Tunnel and Blue Water Bridge Duty Free shops before being rolled out to Peace Arch Duty Free by early September
Piz Buin is continuing the battle to grow its presence at UK airports. The brand, which began negotiations with World Duty Free and Alpha Retail for listings at airside stores last year, has yet to complete a deal with the companies

Confectionery & Fine Foods

Belgian chocolate company Starbrook Airlines, which specialises in retro-style flying images on its packaging, has broadened its distribution base as it prepares to move into a bigger factory later this year (DFNI February 15)
The move of Choc Stop International by Chocolate Sales & Supplies to new premises at Kuala Lumpur International airport (DFNI February 15) has been postponed until the autumn because of building delays
Italian agent Multi Duty Free Dept (MDFD), which was granted the duty-free rights for premium coffee company Illycaffè last year (DFNI November 15 2005), has negotiated trials for espresso machine sales at three Italian airports
Spanish confectionery company Doña Jimena, whose portfolio includes premium turrón products, was at the TFWA Asia Pacific show in Singapore last month in a bid to raise its duty-free profile

Gifts & Electronics

Writing instruments supplier Sheaffer is to focus on its growing inflight supply business in the next few months after achieving new listings on board seven US airlines
PT Switzerland is preparing to focus on a new gifts strategy for premium licensee Police in 2007
Electronics supplier Digital & Wireless has increased its duty-free portfolio of branded goods

Jewellery & Watches

German electronics distributor Braun has developed new inflight packaging, following its entry into the watches market earlier this year with a range of eight timepieces
US jewellery supplier Lauren G Adams has created a range of chunky jewellery designed to appeal to celebrities and young people
Australian jewellery supplier Equss has reported encouraging results in its first six months in duty-free. The company entered the market at the beginning of the year
In a bid to build its business outside travel-retail, jewellery and accessories supplier Bijoux Terner is to open 97 new stores in domestic markets across the Middle East following an agreement with retailer Azal Group
Americas-based watch licensee Pevazi is to focus on increasing sales of its odm (original, dynamic and minimal) range in the Caribbean in the second half of this year

Fashion & Leathergoods

Italian fashion house Giorgio Armani will establish its first airport store in South America this September when it opens an Emporio Armani unit at Buenos Aires Ezeiza airport
Following its rapid growth in South American markets, Peruvian apparel brand Alpaca 111 is to expand its cruiseline business through deals with two big operators
After signing a licensing agreement with Puma in March, Japanese company Charmant is preparing to launch a range of sunglasses and optical eyewear for the sports label, to be rolled out to retailers from October
UK distributor Market Connections has been appointed to handle the Caterpillar sunglasses range in global travel-retail markets, following the agent's recent success with Carolina Herrera eyewear