DFS retains Changi wine contract

Dermot Davitt

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Incumbent beats Swizzle in tight contest for key concession

DFS Venture Singapore beat close competition from surprise rival Swizzle to retain the wine concession at Singapore Changi airport terminal two. The current contract operated by DFS expires at the end of November. The new contract will run for three years from December 1.

In its bid, DFS offered the higher of two options: either 9% of gross monthly sales, or a minimum monthly guarantee of S$35,000 ($20,800) plus 5% of incremental sales of classified growth wines exceeding S$45,000 ($26,800) and 25% of incremental sales of other wines exceeding S$185,000 ($110,000) per month.

The wine concession was tendered alongside liquor and tobacco three years ago, when DFS won the business. But the airport has just granted DFS an extension to its liquor and tobacco business until the new Changi terminal three opens in mid- to late 2007.