Heinemann venture wins Oslo contract

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SAS Trading fails in its bid to extend its retail operations at Norway's airports as authority Oslo Lufthavn selects Gebr Heinemann's Travel Retail Norway joint venture

Gebr Heinemann's joint venture with Norwegian beauty retailer Estetique, Travel Retail Norway, has won the tender to operate duty-free at Oslo Gardermoen, Stavanger, Bergen, Trondheim and Kristiansand airports. The seven-year contract, starting next year, is anticipated to generate annual turnover of SKr1bn ($132.5m) and is likely to be signed in August.

The result is a serious blow to Oslo incumbent SAS Trading, for which winning the tender was a priority this year. The company received a letter of intent from airport authority Oslo Lufthavn/Avinor stating that it would not be continuing its forty-year partnership.

OSL/Avinor spokesman Jo Kobro told TRW that Travel Retail Norway's bid was the highest. ?It would have been easier to stay with SAS Trading but the difference in the bid was substantial enough to make it a better commercial situation. Estetique is the most important beauty retailer in Norway and brings with it much experience.?

SAS Trading president Patric Sjoberg said: ?Due to our long experience of the Norwegian duty free-market, we have been working intensively to offer OSL/Avinor an attractive and serious tender. SAS Trading will continue to operate and develop its business in Scandinavia, Poland and the Baltic states. If the concession agreement is signed with another operator, SAS Trading will operate 32 airport shops next year compared to today's 38.

French operator Aelia also reached the final stage of the tender.