Cover Stories

INDIA. Prospective bidders for retail and catering opportunities at one of India's first greenfield private airports were gathering for a tender briefing in Bangalore as DFNI went to press
EGPYT. Airport authority Egyptian Airports Co (EAC) has confirmed plans to upgrade the retail facilities at Hurghada airport
INTERNATIONAL. Dufry Group has recorded impressive first-half profits and turnover following the acquisition of Brasif Duty Free Shop, South America's biggest travel retailer, in March

Insight

The new restrictions on sales of liquids to air passengers have led to the global spread of an airport retail system once confined to the US: gate delivery.
As an indicator of consumer trends, there are few better sources than television commercial breaks
If anyone had any doubts about the global ambition of Dufry Group following its flotation on the Swiss stock exchange late last year, the retailer's first-half results for 2006 should dispel them
Seven years ago, DFNI September 15 1999 hailed the founding of the Travel Value Association as "a move that may change the face of intra-EU travel retailing for ever"

People & Company

YSL Beauté has appointed Sylvie Lavagno as vice-president worldwide travel-retail
People & company news in brief
China's dominant travel retailer China Duty Free Group (CDFG) and Asia/Pacific's leading online travel company Zuji are to join the powerful line-up of speakers at the forthcoming Asia/Pacific Travel Partnership Symposium
Long-serving Scorpio Distribution employee Carol Anne Gray died on September 1 following a battle with breast cancer

Features

From sick man of Asia to one of the World Trade Organization's newest members, Cambodia's transformation in recent years has been dramatic. Although much remains to be done in the country, Dufry Group is confident that its accession to the free-trade club will further strengthen its business there. Gavin Lipsith reports
Eleven years after the war of independence in Croatia ended, tourism in the country has been enjoying a revival. Lorna Strickland examines how two of the nation's main airports have developed duty-free to capitalise on the growth in traffic
Travel retailers are poised to leap on the healthy living bandwagon. But as Emily Pacey discovers, first they need to put more bounce into their springboard, Aviation Health Institute's Healthy Flying concept
Effective promotions are crucial if the declining liquer category is to shake off its once-a-year image, but what types of promotion do operators and suppliers believe work best in travel-retail? Joe Bates investigates
Tequila is on a roll in the US domestic market as the demand for super-premium spirits grows, but can the Mexican spirit replicate that success in duty-free? Joe Bates investigates
When independent distiller William Grant & Sons appointed ex-bacardi executive Ylva Binder (formerly Persson) as its new duty-free director earlier this year, it knew she would have strong ideas about the way forward. Binder tells Joe Bates that the owner of Glenfiddich needs to make more noise about its key brands
The new security regime imposed after last month's foiled terrorist plot in the UK is hitting World of Whiskies stores at London Gatwick airport hard, as Joe Bates discovered during a recent tour. Nevertheless, World Duty Free is pushing ahead with plans to revamp the seven-store chain

Retail News Analysis

INTERNATIONAL. Alpha Airports Group posted a first-half sales increase of 4% compared with the same period last year
CROATIA. Duty-free sales at Dubrovnik airport increased in the first eight months of 2006 despite a drop in international passenger traffic
CAMBODIA. Dufry Group is forecasting that its operations at Phnom Penh and Siem Reap-Angkor International airports will continue the growth recorded over the past two years, as the number of international passengers to Cambodia continues to rise. International arrivals at both airports have increased by over 20% in each of the past two years, and Dufry Eurasia CEO René Riedi told DFNI that sales had been "more or less" in line with the trend.
SOUTH AFRICA. Tourvest posted revenue growth of 24% in the year ending June 2006, mainly thanks to the success of its duty-free division, which achieved a 90% rise in operating income
CHILE. More than 200 delegates attended the 10th annual ASUTIL conference in Santiago de Chile last week as the Latin American travel-retail industry gathered to debate the future of the regional trade
ARGENTINA. InterBaires CEO Enrique Urioste has confirmed that the company's gate delivery system for flights from Buenos Aires Ezeiza International airport to destinations in the US is now fully operational and is working "better than expected". The system was implemented in response to last month's security alert in the UK
INTERNATIONAL. LVMH Moët Hennessy-Louis Vuitton has reported a 24% increase in profits at its Selective Retailing division in the first six months of the year, with DFS Group overcoming a decline in the value of the yen through "rigorous cost control" and growing its Asian customer base. The Selective Retailing division includes DFS and beauty chain Sephora
UK. Passenger traffic at BAA's seven UK airports reached 14.3m in August, an increase of 0.3% on the previous year
EUROPE. Following the meeting of the European Commission (EC) and EU member states to discuss a proposal to ban liquids and gels from hand luggage at airports across Europe, the European Travel Retail Council (ETRC) has called for airside purchases to be made exempt from any new regulations
HONG KONG/CHINA. Nuance–Watson (HK) has revealed further evidence of its attempts to break into the mainland Chinese airport retail market, with aggressive marketing at Chinese airports and plans to open a representative office in China
SWEDEN. The Nuance Group has reported a rise in sales following the re-organisation of its retail offer at Stockholm Arlanda airport last month (DFNI September 1)
INDIA. The festival of Onam, celebrated in the southern Indian state of Kerala in August and early September, has resulted in a 29% year-on-year increase in passenger traffic at Cochin International airport during the corresponding period
NEW ZEALAND. Auckland International airport has advised US-bound passengers travelling on Air New Zealand flights that they can buy any duty-free products in airport stores before boarding
SPAIN. Spanish retailer Aldeasa has appointed logistics firm Logista to manage supply to its stores at Madrid Barajas airport. Logista, part-owned by Aldeasa co-owner Altadis, will develop a new logistics model designed to improve efficiency throughout Aldeasa's network of 60 stores at Barajas

Liquor & Wines

Brown-Forman has confirmed it is to buy premium tequila brands Herradura and El Jimador from Casa Herradura for $876m, beating rival bids from Pernod Ricard and Bacardi
Distilleria Bottega is hoping to revive interest in the sambuca sector at TFWA World Exhibition this year with the launch of a new product, Sambuca Bottega
Independent Irish supplier PG Brogan & Co will officially launch Brogan's Legacy, its new 10yo Irish single malt whiskey, at next month's TFWA World Exhibition
Diageo has revealed that duty-free sales of its core liquor brands have declined sharply after hand baggage rules banning liquids were introduced at many international airports following the uncovering of an alleged terrorist plot in the UK last month
Martini celebrated its sponsorship of the Ferrari Formula One team in this year's world championship with a dedicated promotion at Milan Malpensa airport earlier this month

Tobacco Products

Cuban premium cigar supplier Habanos is to introduce several new products at next month's TFWA World Exhibition, all destined for duty-free shops across the world in the third quarter of 2006
Canadian pipe specialist and cigar distributor Brigham Enterprises has appointed US duty-free agency Alfa Brands to represent its cigar portfolio on the Canadian market
While most of the scaremongering in the past two months has focused on the new security restrictions following the foiled UK terror plot of August 10, it is heartening to see that the mainstream media has not entirely neglected the rest of the travel-retail industry

Fragrances

Gebr Heinemann has reached an exclusive deal to launch Victoria's Secret Beauty (VSB) products in Germany and Turkey
Fragrance house Sogen has unveiled the latest addition to its portfolio, So...? SuperStar.
Parlux is in negotiations with Victory International with a view to offloading its Perry Ellis brand. The company issued a letter of intent to sell the fragrance rights to Victory last month

Cosmetics

Airport spa retailer Be Relax plans to open five new spa units in Europe next year
Swiss skincare supplier La Prairie is to introduce its line of treatment cosmetics Cellular Treatment Colour Système to the UK domestic market through an exclusive deal with Harrods in London this month
L'Oréal Luxury Products International's beauty brand Biotherm has launched a number of new products to complement its Biofirm Lift face and neck cream, introduced at the beginning of this year
Black'Up, the cosmetics collection created for dark-skinned women, is to widen its range by adding a bodycare line. The company will display the new products at the TFWA World Exhibition in Cannes (K40, Green Village)

Confectionery & Fine Foods

Dublin confectionery supplier Butlers Chocolates has responded to a niche trend by launching its first organic chocolate
More Confectionery and fine foods news
Cadbury Schweppes International Travel Retail (CSITR) has achieved an important breakthrough with Alpha Orient Lanka at Colombo Bandaranaike International airport, where it recently introduced its Luxury Selection pralines in arrivals and departures
Rougié is leading a campaign by foie gras specialists designed to counter consumer misconceptions about the production process
Masterfoods International Travel Retail (MITR) has reaffirmed its confidence in the confectionery market as the countdown begins for the TFWA World Exhibition in Cannes next month

Gifts & Electronics

Hudson Group has opened two news and gift shops at Baltimore/ Washington International airport concourses B and C
Philips' new shaver line will not be ready for presentation to the industry at next month's TFWA World Exhibition in Cannes as a result of a manufacturing delay
Plush toy supplier Russ Berrie is set to expand its duty-free team in 2007
Inflight accessories supplier Scorpio Distributors has opened a warehouse and office in Dubai, which it hopes will help it to tap into "the massive additional potential" offered by the region's airport shops

Jewellery & Watches

Alpha Retail has added new space to its jewellery and accessories boutique at Rome Fiumicino airport
Dubai-based duty-free operator Flemingo International has signed an agreement with jewellery supplier and retailer Damas to offer its portfolio of jewellery and luxury watch brands at Flemingo's stores in Jaipur, Trivandrum and Chennai airports in India
Hong Kong-based watch licensee Retkie, supplier of the Fila range of timepieces, has made several additions to its portfolio of brand licences
More jewellery and watches news

Fashion & Leathergoods

New York-based fashion and travel bags supplier LeSportsac has signed an exclusive agreement with McG Consultants to develop its travel-retail business in Europe and the Middle East
Luggage and fashion house Mulberry last week delisted large bags from its stores at London Heathrow airport terminals one and four following the security clampdown triggered by the alleged terror plot uncovered on August 10
More fashion & leathergoods news
US laptop bag specialist Targus has responded to new security restrictions requiring passengers to check in laptop computers with their hold luggage by promoting its range of high-protection notebook cases. The company claims its products ensure that laptops can withstand robust treatment by baggage handlers