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Will latest oil crisis halt 2010s strong INSIDE INSIDER recovery in Americas travel retail business? NEWSAmerica North
The fallout from the explosive situation in Libya which forced the North African nation to cut its oil production in half and pushed world prices as high as $120 a barrel at the end of February is already clouding the rosy predictions of recovery that fueled a robust 2010 in travel retail markets in the Americas. Just days after the turmoil erupted, on March 3, aviation trade group IATA reacted to the soaring oil prices and downgraded its airline industry outlook for 2011 to $8.6bn from the $9.1bn it had forecast in December. Airlines responded immediately, hiking fares and rolling out fuel surcharges, particularly for international travel. As TMI goes to press, JetBluea major carrier to the Caribbean announced it was implementing a $45 one-way surcharge in select Caribbean markets, which could have dire repercussions on the regions fledging recovery. Prior to the latest crisis, tourism numbers were rebounding in most of the Caribbean: 21 destinations recorded increases over 2009 figures, says the Caribbean Tourism Organization, with overall stayover figures matching the peak levels of 2008. And South America driven by, but not limited to, a booming Brazil turned in an excellent year. Passenger traffic both domestic and international grew over 20% in Brazilian airports, helping Dufry do Brasil post a 44% increase in sales for the first nine months of 2010. Sales at InterBaires in Argentina were up by 45% and at Duty Free
FDFA launches new national marketing campaign & website New York JFK: T4 & Delta Airlines begin $1.2 billion expansion/enhancement BAA USA fights back against critical union report South America: The Brazilians are back; and spending big throughout the region. Caribbean: Jamaicas Tourism Minister discusses latest duty free break-through Regions Tourist Officials ready for Cubas opening to U.S. tourism Yellow House expands flagship store in Curaao
Swarovski is rolling out its Crystal Forest concept, a revolutionary new look shimmering with crystals and light, to select boutiques worldwide, like this one in Santa Fe Mall, Mexico. Read the full story beginning on page 56.
Uruguays stores in Montevideo airport by more than 50%. Results from border operators London Supply and Mannah were just as impressive, up by high double-digits as well. The region, which was only marginally affected by the international crisis in 2009, seems unstoppable. Indeed, the prevailing feeling in the Americas has been one of optimism, albeit tinged with caution. Suppliers in every category report that they enjoyed strong sales over the past year, and although not all are up to the 2008 level, quite a few categories have surpassed those records. The industry has worked hard to achieve this rebound, however, developing creative, innovative animations and promotions to engage the consumer, and turn him into a buyer. Many companies
as this issue highlights have literally come off the walls to interact with customers in the store and beyond, with Diageo and Bijoux Terner being just two of the examples we present within these pages. And as for now, people are still traveling, the single most critical driver in the duty free and travel retail business. This issue of Travel Markets Insider examines what happened in 2010 in Canada, the U.S., the Caribbean and Latin America, and what plans the industry has for the months ahead, even as it prepares to adapt to whatever changes may result from the latest crisis. All this and more, Inside Insider. Lois Pasternak
BIJOUX TERNER steps out from the wall Supplier Features: One-on-One with Swarovskis Gonzalo Almada and Nelson Rivera, BPIs Gerard Pichon-Varin, and Parfums Narciso Rodriguez Christophe Fabrega, plus more Diageo aims to transform the TR environment in the Americas Patrns XO Cafe grew by triple-digits in travel retail in 2010, and helped drive company sales to new heights Plus Products-People-Places The Insider View
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Canada: National marketing campaign; By the Numbers; Highlights from the Big 25; more Page 20 North America: $1.2bn expansion at JFK T4 underway for Deltas relocation Page 26 T4-Delta expansion ushers in new era of retail development for JFKIAT BAA USA: on the defensive against flawed critical union study South America Brazilian boom benefits all: Dufry do Brasil, London Supply, Mannah Duty Free, InterBaires, Duty Free Uruguay Exclusive Interview: Jamaicas Minister of Tourism discusses new duty free legislation, arrivals shopping and cruise ports as ways to boost visitors
American Designer Narciso Rodriguez reveals Light, Purity and a touch of musc & One on One with BPIs Gerard Pichon-Varin Page 66 BEAUTY Page 68
Page 28 Page 32 SPIRITS - Where the Action is across the Americas DIAGEO: transforming the TR environment in the Americas William Grant & Sons: focus on the Americas with expanded team and aggressive brand activities Confectionery, Gifts, Accessories, Electronics SPECIAL TRIBUTE: Givenchys Patti Grant retires & Her friends wish her well People News Page 96
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Cuba: How Caribbean Tourism Officials are preparing for U.S. opening Page 48
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U.S. Proposes hike in Air Passenger Fee from Canada, Mexico and the Caribbean; CAC warns of border leakage
The Obama budget proposes a $5.50 per passenger Passenger Inspection Fee be levied on travelers from Canada, Mexico and the Caribbean into the U.S. The fee would not be levied on automobile travelers, which the Canadian Airports Council warns would contribute to increased leakage of Canadian travelers driving over the border into the United States to take a trip using less expensive airline tickets for foreign travel. The new fee would be in addition to the U.S. Agriculture Fee of $4.95, a U.S. Transportation Tax of $16.14 and a U.S. Immigration User Fee of $6.93, reports CAC. The trade industry group reported in its February newsletter that 21% of Canadas leisure travelers said they traveled by car to a United States airport in 2010 to take a trip using less expensive airline tickets purchased for U.S. or foreign travel, and an additional 11% said although they had not done so in the past, they might travel to the U.S. for cheaper travel in 2011. This is up from 18% from 2010. This has the potential for almost one third of Canadian travelers spending money on foreign airline tickets and taking flights outside of Canada. The dollar at par and high costs for Canadian airports and travel mean that Canadian air carriers are at a distinct disadvantage and cannot offer the prices to match those in the United States, said Tony Pollard, president of the Hotel Association of Canada, which conducted the annual study. This growing trend has serious consequences for the Canadian travel industry and needs to be addressed by the reduction of airport fees, travel security costs and airline surcharges. Eighty three percent of leisure travelers said they will be traveling in 2011. This is up from 78% in 2010. Only 76% of business travelers said they will be traveling in 2011; a figure comparable with 2010. In Ontario business travel is forecast to be up 5% year over year however. The survey of Canadian travelers is the seventh annual Canadian Travel Intention study undertaken by the Hotel Association of Canada. This survey was fielded by TSN Canadian Facts and defines a traveler as someone who will stay at least one night in a hotel, motel or resort. The online survey was conducted in January 2011 among 1,627 likely travelers with a margin of error of +/- 2.4%.
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Luxury experts to address TFWA Asia Pacific & GATE ONE2ONE Conference in Singapore in May
Online pre-registration for the TFWA Asia Pacific & GATE ONE2ONE Conference and Trade Show taking place on May 16-19 at the Singapore Suntec Center is now open at www.tfwa.com. Christian Blanckaert, President of Petit Bateau and former Vice President of Herms International, will make the keynote address at the May 16th Conference. Under the overall conference theme of Asia Pacific Inside Out, he will discuss the business of luxury and offer insights to the success of luxury brands in the region. TFWA President Erik Juul-Mortensen will open the conference with an overview of the duty free and travel retail industry in Asia Pacific today, analyzing recent performance and summarizing the opportunities and challenges ahead. Retail industry thoughtleader Rohit Talwar, CEO of Fast Future, will explore key opportunities and challenges facing the duty free sector in Asia Pacific markets over the next decade. Talwar will address global trends shaping the economic and consumer landscape, the pan-Asian consumer outlook, innovation and technology, and suggest practical steps for duty free and travel retail businesses facing changing circumstances. Rounding out the program, Sunil Tuli, President, Asia Pacific Travel Retail Association, will discuss the challenges facing the industry in the Asia Pacific region and call for support for APTRAs efforts to address them. TFWA has announced that the Diamond sponsor of the 2011 TFWA Asia Pacific &
expertise and experience to the role. Ccile joins TFWA at a very exciting time as the Association is in the middle of its strategy review. I am confident that she will also make a significant contribution to this process to the benefit of our members and the industry as a whole. Ccile Lamotte can be contacted by email at c.lamotte@tfwa.com.
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Alberto C. Motta, Jr. President, IAADFS Michael L. Payne, Executive Director, IAADFS
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FDFA says Its better at the border with new marketing campaign
Canadas Frontier Duty Free Association has embarked on the first phase of its National Duty Free Marketing Campaign and the rebranding of its industry with the debut of a newly designed website and a new slogan Its better at the border. The FDFA is repositioning its brand to better reflect the needs of travelers, as well as the quality of the products Duty Free lists. This national effort began in February with the launch of the new website, followed by retail and publicity campaigns developed and administered by Beakbane Retail Connections, a marketing firm out of Toronto, ON. The objective of the national initiative is to ensure that FDFA is creating a more cohesive message regarding the industry to the public. It also hopes to create greater awareness to the public about the industry and the value of shopping at Canadian duty free stores, says Laurie Karson, FDFA executive director. On February 8, the FDFA hosted a webinar for its 27 land border duty free participating stores. Beakbane walked the stores though the new brand focus, introduced a style guide to assist the stores in identifying how to use the brand focus in conjunction
with their own store marketing strategies, and unveiled the new National Duty Free website. The new program is not intended to replace the land border stores current marketing efforts, but is designed to enhance all of the stores marketing efforts and increase the publics understanding of what duty free is, where the stores are located, what kind of savings can one really expect at duty free stores, and how does one calculate duty free allowances. Each of the participating stores has its own store page/profile. Over the next few months, the National Marketing Program will be taking on more initiatives including the translation of the National website, e-banner campaigns, a public relations campaign, a national supplier advertising roll-out, a social networking launch, and more. The new website is www. dutyfreecanada.com. The FDFA will be changing its site address to www.fdfa.ca . In the upcoming months, the FDFA will be recreating its website to be more member centric.
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treasurer. The three directors are Justin Guay of IGL, Nancy Enright of BHT de Philisburg and Len DaSilva of West Coast Duty Free. The Frontier Duty Free Association announced the positions of its new board, which was elected during the FDFAs 25th Annual Convention in Niagara Falls in November. Windsor Duty Frees Abe Taqtaq has been appointed president, replacing Peter Brain of Blue Water Bridge, who remains on the board as vice president. Abbotsford Duty Frees Paul Dickinson continues as secretary and Peace Bridge Duty Frees Jim Pearce will remain as FDFA Gold Standard Awards The winners of the FDFAs 2010 Platinum Award, awarded to the shop demonstrating the highest quality standards determined by a specific set of criteria, were Boutique Hors-Taxes de Philipsburg Inc. (category A) and Blue Water Bridge Duty Free Shop (category B). Niagara Duty Free walked away with two awards: one for Best Marketing and one for Best Marketing Promotion of a Canadian-made Product. West Coast Duty Free won the Best New Idea Award. Blue Water Bridges Richard Stebbins also won the Outstanding Customer Service Award. Courtny Becker of DFS Ventures Inc (Emerson Duty Free) won the Doug Waldie Student Scholarship Award. Supplier of the Year 2010(large) went to Pernod Ricard Americas Travel Retail. Supplier of the Year 2010 (small) went to Turkey Hill Sugarbush Ltd. Best Fragrance/ Cosmetic went to Michel Germain Parfums for Sexual Secret. Best new Spirits /Tobacco/Beer product went to Pernod Ricard Americas Travel Retail for Absolut Berri Aai. Best new Specialized product went to Distribution Fontaine for Kinder Chocolate
Former FDFA President Peter Brain (l) is now vice president of the association succeeded by new president, Abe Taqtaq (r).
Pernod Ricard TRAs Sandra Welch and Lori Watson show their trophies to Windsor Duty Frees Abe Taqtaq, the FDFAs new president.
Niagara Duty Free General Manager Steve Richardson with the two prizes his store won at the FDFA Gold Standards Award.
The founding fathers of the FDFA, who started the Canadian land border association 25 years ago, at the Silver Anniversary celebration in Niagara Falls. IAADFS/MHA Issue March/April 2011 22
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BY THE NUMBERS: CANADA
Canadian airport duty free sales end year strongly up; land border sales stay flat
Canadian airports kept their strong recovery going throughout the year, recording double digit duty free sales growth in 2010, according to the Canadian Border Agency. But sales at land border shops did not show much progress, with final 2010 sales up less than one percent over 2009 sales. Canadian airports finished 2010 with duty free sales up 13.24% over 2009 to C$201 million. For December, airport duty free sales were C$18.9 million, up 10% compared to December 2009. All three of the major product categories had positive results in 2010. Perfume, Cosmetics, and Skincare (31.24% of total airport sales in 2010) rose 11.56%. Alcohol, (22.76% of airport sales), increased by 13.58%, and Tobacco (19.62%) was up 6.45%. The Vancouver Winter Olympics helped other categories have a fantastic 2010. Although clothing only accounted for 3% of airport sales in 2010, sales rose more than 60% over 2009. Sales of Souvenirs (2.3% of total airport sales) were up 28.03%. Canadian land border sales in 2010 increased less than one percent, or .84%, to C$141.8 million, with December land border sales down slightly, by -.73% versus December 2009, to C$10.6 million. Full-year sales of two of the three major product categories were down in 2010: Alcohol, 38.36% of total land border sales, fell 2.46%, while Perfume, Cosmetics, and Skincare (13.99%) slipped 2.31%. Tobacco (28.43%) was the lone bright spot in 2010, with sales up 7.95%. Ontario was the only one of the four land border regions with negative sales in 2010, down 1.44%. Sales in the Atlantic/ Quebec region were up 1.62%; Prairie was up 9.89%; and Pacific was up 3.34% in 2010. January update: Canadas duty free land border and airport sales maintained the same pattern set throughout most of 2010, with airport sales showing consistent double-digit gains and land border sales struggling to catch up. Overall, national airport duty free sales figure for January 2011 are C$17.3 million. This is an increase in sales of 13.86% compared to January 2011 sales. However, the January 2011 airport sales were down more than C$1.5 million from the December 2010 figures. The national land border duty free sales figure for January 2011 reached C$7.1 million, a 0.37% decrease in sales compared to January 2010; and down C$43.5 million from the month before. By region, Land Border sales were up in the Pacific Region and in the Atlantic/Quebec Region, by 11.33% and 2.66% respectively compared to January 2010. Sales were down in the Prairie Region and in Ontario, 2.88% and 4%, respectively.
Our government takes aviation security seriously, and we are unwavering in our determination to keep Canadian travelers safe and secure from terrorism, said Chuck Strahl, Minister of Transport, Infrastructure and Communities. CATSAs screening will be smarter, and more efficient and effective by modernizing passenger and baggage screening, said Rob Merrifield, Minister of State (Transport). Harmonizing our prohibited item list closely with international standards will improve the passenger screening experience. As a result of the CATSA review, air travelers can now bring in their carry-on baggage small scissors and tools that are no longer than six centimeters (excluding
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the handle). Knives of any size or length remain prohibited. New equipment and lane configurations will enhance the flow of passengers and bags at the security screening checkpoint, says the Canadian government. CATSA will be installing equipment that will automatically separate suspicious bags from cleared bags, reducing congestion. In addition, CATSA is expanding the use of the Trusted Traveler CATSA Screening Line for pre-approved travelers who hold a valid NEXUS card. There will also be new dedicated lanes for families and those with special needs with equipment specifically designed for bigger items like strollers.
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March/April 2011 IAADFS/MHA Issue nlandia.com Keep your judgement pure. Drink responsibly.
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The artist rendering of the JFK Terminal 4 future drop-off area, scheduled to be completed in May 2013.
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Janice Holden, Chief Commercial Officer, JFKIAT says that Terminal 4 comes away with a number of significant wins from the expansion project and relocation of Deltas international gates, particularly from the commercial and the concessions side. Todays already robust concessions program is before security and that has always been a challenge for us, says Holden. It hasnt stopped us from having some incredible performance, but it has always been a challenge because a presecurity environment after 9/11 is not really a trend in aviation today. Holden points out that the large international component of T4s passenger mix drives its commercial offer even though the location of the stores is not ideal. Over 75% of our program is pre-security and despite the fact that our primary commercial offerings are pre-security, we do an incredible job because we have a very large percentage of international passengers. About 85% of our traffic is destined for international gateways. Of those probably 55 - 60% are non U.S. passport holders. These are foreign nationals for whom shopping, particularly in New York, is part of the reason that they come here. So a large percentage of our passengers continue to shop even as they are leaving the country.
IAADFS/MHA Issue March/April 2011
JFK T4s current Retail Hall will be converted into a post-security environment once the current renovation and expansion is completed in 2013.
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Right: Artist rendering of the future security arrangement in Terminal 4 where the two current checkpoints located on the right- and left-sides of the knuckle of the u-shaped terminal will be relocated to a centralized position on the departure level. Below: The Lobby of the renovated and expanded Terminal 4 will be open and spacious.
we will have to suffer through noise, dust and construction. We are committed to managing that as best as we can. At least we know what is ahead for us. Holden notes that a lot of the construction that will be done is fortunately external the concourse and inline baggage system are being built outside of the existing structure. So there is really no impact to our business from that, she says. But doing business in the retail hall will not be without its construction challenge, she admits. The project is slated for opening in May of 2013, so we have basically two years to get this done. JFKIAT is working closely with Delta, and has issued an RFP for consulting candidates and, from the concession side, has a search on for a director for the concession management, both of which will be chosen shortly. We have our team, and a representative from Schiphol Airport, and from Delta. The plan for this year is to work together with the consulting firm and an architectural firm to come up with design, the flow, and the look and feel of the concourse. Then we work very closely with all of our incumbents, and
their design teams and architects, because they have a lot at stake here. We want to maximize what we put where and how we flow the passenger traffic. We basically have until 2012 to execute the plans, finalize negotiations, and start building in certain areas. By 2013, when the security checkpoint moves upstairs, we can complete the remainder of the build-out, says Holden. It should be really quite an impressive program by then, assures Holden. This program is a chance to create something that is New York and new and really meets the needs of todays passengers. Our passenger mix will change a bit, because the Delta passenger mix is slightly different than ours. Delta has made a huge commitment to Kennedy Airport to international service. They had a lot of feeder service into here, but they are operating a huge international program from Kennedy now. Holden says that the nine gates that are being added onto the existing B concourse are primarily international gates, since they are replacing Deltas international terminal. T2, which will continue to operate, does not have an international component. So in the future when you fly from Miami, you
could fly into T4 or you could still fly into Deltas Terminal 2, and then connect to your international flight at T4. The question is what will happen with Deltas concessions partners that are in Terminal 3 today? All of the current concessionaires in T3 have leases that expire in 2013. So this change is not a surprise. And as much as possible, we will try to accommodate some of those concessionaires here, says Holden. Delta has reached out to the concessionaires to say that there may be some opportunities in terminal 4. But we are not ready to discuss anything until after flows and designs are decided. The main priority, she says, is to accommodate and service the Delta passenger. And how does JFKIAT envision the new retail program will look? We have the opportunity here to take the retail concessions to a whole other level, says Holden. We have the chance to take away the walls, and do away with glass. We have the chance to open things up in ways that may be more like our European colleagues are doing. For example, we have the opportunity to move passengers through our retail area, not just around it. If we can do this in a way that works, we are open to anything. So it is a great opportunity for us to try and figure out how best to progress. So often in the past you were stuck with the box that you were given, and then you have to work within that box. But in this case, we are going to try and open up the box and take down the walls and redesign things. Now the concessions will be an integral part of the plan. It is a very exciting time for us and our concession partners and hopefully for the traveling public that goes through here, says Holden in conclusion.
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The new AIRMALL at Cleveland Hopkins International Airport was substantially completed in 2010, but rent revenue jumped by 161% since BAA took over from a master concessionaire in 2008.
BAA USA condemns flawed union study that attacks use of private developers in airport concessions
Airport developer and concessionaire AIRMALL USA is condemning what it calls a flawed and misleading study by the labor union interest group Airport Group, which attacks the use of private developers in the airport concessions industry. The Airport Group, the national airport policy and development arm of Unite Here, has released the first in a series of analyses about the use of private developers in the airport concessions industry and what it calls its negative impact on the airport community. Unite Here is the union for travel hospitality workers, representing 25,000 airport workers across the U.S. and Canada. The first piece in the series, Less Rent Generated under the Developer Model, demonstrates that the percentage rent of concessions sales paid to airports which utilize the concessions developer AIRMALL USA (Baltimore/Washington, Boston Logan, Pittsburgh, and Cleveland Hopkins International Airports) are lower than rents collected by peer airports. BAA USA reacted immediately to the study when it was released at the beginning of March. Simply stated, Airport Group and Unite Here have conducted a flawed analysis of our model, and it misrepresents the truth. Instead of telling the whole story, they are being selective about the information they present, said BAA USA President Mark Knight. Their tactics are both predictable and unacceptable, and their attempts to somehow undermine the validity of our business model with half truths will not go unanswered. We will pursue every avenue to be certain that the whole truth is out there about our success and the success of our airport partners in Boston, Baltimore, Cleveland and Pittsburgh. Knight spoke with Insider about the Airport Group study: We are known for being all about our employees. Our model brings in multiple companies who then employ many more people. As the programs top line increases, as we generate more sales, and offer better service and better selection, those employees get to make more money. They prosper and everybody wins, including the customer. So, I think our model, ironically, is the model that should be embraced by the airport group, not vilified. Our goal is always to be a real part of the airport community, stressed Knight. AIRMALL USA manages and develops the retail, food and beverage concessions at its four airports. Founded in 1992 at Pittsburgh International Airport, the AIRMALL model has posted some of
BAA USA has operated the concessions in terminals B & E at Boston Logan International Airport since 1999 during which time rent revenue has gone up 165%.
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the highest per-passenger spends in North America over the past two decades and has won numerous awards for innovation and customer service. In its statement released on March 1, Knight went on to highlight some important statistics about each of AIRMALL USAs projects, which demonstrate that they generate greater overall sales, more sales per passenger, and higher rent revenue for the respective airports: At Pittsburgh International Airport, based on 2010 figures, sales per enplanement have risen by 400% (from $2.69 to $13.45), revenue per enplanement has gone up by 357% (from $0.47 to $2.15), and rent revenue generated by the property has gone up by 126% (from $3.9 million to $8.8 million) since AIRMALL USA inherited a master concessionaires model when it began developing and managing concessions for the airport in 1992. The program at Pittsburgh International Airport has remained the gold standard for airport concessions since its inception. This despite the fact that the airport has witnessed a dramatic downturn in passenger traffic over the past 10 years. At Boston Logan International Airport, as of 2010, sales per passenger had risen during that period by 149% (from $4.87 to $12.15), revenue per enplanement had gone up by 211% (from $0.69 to $2.15), and rent revenue had increased by 165% (from $5.1 million to $13.5 million), since AIRMALL USA began developing concessions in terminals B & E in 1999, taking over from a master concessionaire. AIRMALL USAs largest project is at Baltimore/Washington International Thurgood Marshall Airport where it took over from a master concessionaire in 2004. Based on 2010 figures, sales per enplanement have gone up by 61% (from $5.47 to $8.81), revenue per enplanement has jumped 117% (from $0.65 to $1.41), and rent revenue has risen by 142% (from $6.4 million in 2003 to $15.5 million in 2010) since 2003. The new AIRMALL at Cleveland Hopkins International Airport was substantially completed in 2010, although AIRMALL replaced a master concessionaire model starting in 2008. Since that time, sales per passenger have risen by 30% (from $5.59 to $7.28), revenue per passenger has increased by 163% (from $0.35 to $0.92), and rent revenue has jumped by 161% (from 1.8 million to 4.7 million). The numbers really tell the whole story. The AIRMALL model trumps other concessions models in terms of the revenue it generates, including rent revenue for the airport, Knight continued. At each of our projects, AIRMALL has been highly successful at partnering with the airport authority to develop an enhanced, profitable program that includes the very best international, national and regional brands. Moreover, everything is offered at Regular Mall PricesGuaranteed. This represents true value to the passenger, because they know they are getting quality goods and services for a fair price. To view the report issued by the Airport Group, go to http://www. airportgroup.info/AIRMALLed_LessRent_ Feb2011.pdf.
BAA USA President Mark Knight also points out AIRMALLs track record of transforming its concessions programs into economic drivers that generate more business and employment opportunities. He offers some examples from AIRMALL USAs most recent projects in Baltimore and Cleveland: AIRMALL USA has nearly doubled the number of local operators or concepts participating in the Cleveland program versus its predecessor. The new concessions program has also more than tripled the Airport Concessions Disadvantaged Business Enterprise (ACDBE) participation. In Cleveland, the number of concessions employees has more than doubled from 343 (pre-AIRMALL) to 772. In Baltimore, the number of concessions jobs has tripled since AIRMALL assumed management of the program in 2003 from 500 employees to nearly 1,500 employees. Airport Group and Unite Here claim to be representing the interests of workers. Based on AIRMALL USAs track record of generating additional jobs for its programs, our formula provides plenty of employment opportunities, Knight added. Many of the additional jobs available at the airport offer very competitive wages, because they are manager- or supervisor-level jobs. In addition, Knight underscored the added value that a developer brings to an airport authority capital that is earmarked for infrastructure development at the airport. He offered two examples: In Cleveland, AIRMALL USA invested $8.4 million to transform the concessions program at Cleveland Hopkins International Airport, representing one of the largest construction projects in Cleveland at the time. The development took shape during one of the most dramatic economic downturns in recent American history. In Boston, AIRMALL USA completed a twoyear, $33 million concessions development project in 2008 to turn what was part of the roof of the terminal into shops and restaurants. This permanent improvement to the infrastructure of the terminal resulted in the addition of nearly 20 new concessions units to the program specialty retail, restaurants and bars, fast-casual/snack units, specialty services, and news/gift units. Other concessions models simply do not have the motivation or the capital to make those kinds of permanent improvements, Knight concluded. Its another important component of AIRMALLs model that makes us far superior. Once we finalize a shared vision with our airport partners, we can change the face of the airport to improve operations, drive sales, and ultimately enhance the passenger experience.
The Ultra Diamond Store in BAAs AIRMALL at Pittsburgh International Airport: rent revenue generated by the property has risen 126% between 1992 and 2010.
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London Supply modified the central hall of its Iguazu store allowing it to stage events
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Sales at our arrivals and departures stores in Asuncion grew by 34%, compared with passenger traffic growth of 24%. The great thing during the whole year was that every month was important we started the year well and then we had some great promotions for the World Cup and then we finished the year very strongly again with some great promotions which pushed sales ahead. According to Mannah, customer service and a solid promotional program have been the keys to last years growth: For more than 30 years we have given our customers the best level of assistance and service - Brazilian travelers look for keen prices but they also want people to help them with product selection in the stores. We feel that customer service is really vital for success and this makes us different from our competitors. Both at the airport and downtown we really do our best to ensure that every single one of our customers leaves the store satisfied - this is the best way to make them come back the next time they are in town. Although the Mannah group has expanded into electronics and fashion, the company built its name as a retailer of perfumes and wines and spirits. Mannah notes that even though all categories did extremely well last year, it was the two traditional categories, wines and spirits and perfumes and cosmetics, which grew the fastest. The performance of wines and spirits was actually quite astonishing with year on year growth of 68.5%. Perfumes and cosmetics also performed really well growing by 51%, he says. In a major departure in the way the company interacts with their customers, the Mannah group launched a web site at the end of last year that allows the company to talk directly to its customers. The site provides access to product and promotions information, and enables customers to reserve merchandise to ensure it is available when they come to the border. During the year we will be introducing additional benefits, says Mannah. As well as our own web page we will also be using social marketing sites such as Facebook in an effort to improve our customer service. As I have said before, we are really proud of our tradition in customer service and our web page activities are merely an extension of this. The Mannah group also plans some partial remodeling of the border shops, and will be making some changes to the electronics and accessories sections, as
London Supply has added LED display lights at its iconic store in Ushuaia
boom at London Supply has benefited London Supplys business in Tierra del Fuego as well as Iguazu. We have also seen really good growth in our airport and downtown stores in Tierra del Fuego, confirms Heredia. Sales grew by 52%, on a like for like basis. Tourism at Ushuaia is now virtually all year round with winter sports and cruise ships in the summer. In addition, this year we have the revenue from our renovated store in Rio Grande. London Supply has made some minor alterations at its stores in Tierra del Fuego, says Heredia, following the completion of the first stage of renovations at its downtown store in Ushuaia. People passing the store can now see directly into the shop from the street and can see almost all of the products on display. We have been able to make these improvements without making major changes to the stores frontage, which is one of the emblematic buildings of Ushuaia. In addition, we have also added some very attractive LED display lights which illuminate the building without detracting from the architectural style. These come in a variety of colors and we can change them in line with special promotions like sky blue and white when we are celebrating Argentine national holidays or the colors of the country of the cruise ship that is calling in the port that day. Halfway through 2010, London Supply modified the central hall of its Iguazu store, which the retailer often used to stage different events. Given that shoppers must pass through here to get to the cash desks, it really is quite important. During the second half of 2010, we have been using it as a very special shop window for some liquor brands who want to build special displays using the two large walls that are available. A full promotional package includes tastings, and floor markings that can have incredible impact. The resulting sales have been remarkable
IAADFS/MHA Issue March/April 2011
and with a little bit of creativity, the special displays can leave a very big impression with shoppers just as they prepare to leave the store. We are sure to continue these special displays through the rest of 2011, says Heredia. January and February have also been solid months for London Supply in Tierra del Fuego and on the northern border, says Heredia: We are confident the strong start to the year will continue and we are now looking forward to the Carnival period and then Easter. The traditional winter holidays half way through the year are not too far away and we are planning strong promotions for all those periods. Sales continue to grow month after month and with the current stable economic situation, we cant really see that stopping in the short term. The Mannah duty free group is also benefiting from the growth in intra-regional travel. Sales at the border shop and airport shop operator have pulled well ahead of expectations according to the company president and CEO, Alejandro Mannah. 2010 was a really good year for our shops at the border stores and our airport shops, comments Mannah. At the beginning of the year we were hoping for a good year, but it was really excellent and much better than expected. The regional economic situation is very stable. The dollar has also been relatively stable against all the local currencies, unemployment is down and that is great news for business and leisure travel and for everyone involved in the duty free business. We had been hoping for a good year but 2010 was much better than we had initially expected. Given the strength of the tourist numbers in Ciudad del Este its safe to say that 2010 sales were better in the border stores than in the airport, with high double digit growth at our three border stores. However, we were also more than pleased with the way things went at the airport.
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well as adding more brands. We are sure that more passengers will use the airport at Asuncion and more tourists will visit the area, all of which means more customers for our stores and a great 2011. Sales at Buenos Aires based duty free operator InterBaires followed the regional trend with strong double digit growth in 2010. Company CEO Martin Leal told Insider, Sales throughout the year were exceptional and we finally posted a 45% increase in sales compared to the previous twelve months. The increase in passenger traffic was important but we also managed a 21% increase in our average sales ticket which is due to a solid promotional program and a very positive attitude from our sales people. We have also been working at increasing penetration and we managed to add 8 points to the rate during the year. The 45% sales increase has to be analyzed alongside a rise in international traffic at Buenos Aires principal airport Ezeiza of 11.1%, says Leal, adding: Sales have been increasing constantly since the 4th quarter of 2009. We have seen increased numbers of every nationality but the strength of the Brazilian economy has meant that flights to and from Brazil are full. High numbers of Brazilians at Ezeiza and Aeroparque means that sales of all categories do well but Brazilian travelers are renowned for buying high ticket items and this was certainly true in 2010. InterBaires has been renovating both Ezeiza and Aeroparque, virtually rebuilding the arrivals and departures stores at Aeroparque in November. The stores are essentially the same size but we have taken better advantage of the available space. The new layout also takes into account newer categories that werent present before in both shops. We now feel that we have the right products given the new passenger profile of the airport user. Flights from Aeroparque now include several destinations in Chile, Paraguay and Brazil in addition to Uruguay. And the product offer now reflects this we have the best-selling products for each category well displayed for shopper, says Leal. InterBaires also instituted a complete redesign of the cosmetic category at Ezeiza; a major overhaul since perfumes and cosmetics is the biggest selling category in the store. The renovation added shop within shops for a number of brands like Dior, Chanel, La Prairie and Kiehls. Chanel and Dior are well known brands [in Argentina] while La Prairie and Kiehls are less so. But they are doing a lot of new things around the world and the early results from these new shops justify the investment the suppliers have made, says Leal. Fine-tuning the product selection is an important and ongoing task for the commercial and sales team at InterBaires, one which will continue during 2011. Leal says, We will look to bring in a number of new brands that are not on sale in the local market. The management team at InterBaires will be looking to consolidate the impressive sales growth experienced throughout 2010. In the medium term, a new passenger terminal at Ezeiza is bound to be a major boost for the companys expansion plans. Most observers dont expect the state of the art terminal to be ready before early 2013, giving the company additional planning time. Meanwhile, the companys objective is to interact with customers in a more dynamic and innovative way offering new and better brands in traditional and new categories to ensure solid sales growth over the coming months. Diego Arrosa, general manager at Duty Free Uruguay (DFU), confirmed to Insider that 2010 has been a great year for the company. We set some very aggressive objectives and we bettered them. Year on year sales at Carrasco airport were up by 52%, which is a tremendous figure when you realize that passenger traffic was up by 25%. We were helped by strong performances by almost every airline especially flag carrier Plunas new hub strategy bringing in increasing numbers. The Brazilian airlines have also brought in more passengers and there is no doubt that the Brazilian middle classes are traveling again and spending when they arrive and when they leave. The intercontinental flights to Europe and North America were up only slightly. DFU had a strong performance at Punta del Este as well as in Montevideo, says Arrosa. Traffic for the year was only up 10% but sales increased by 18%. This is a pretty decent figure and would have been higher but January last year was quite slow as we were putting new systems in and there were some hiccups, which couldnt be avoided. However sales over the high season months from December through February have been extremely good with sales increases of over 60% month against month. In spite of the increase in total airport users at Montevideo to 1.65m, Uruguayan nationals are still the most important nationality for the duty free concession holder. Uruguayan residents still account for 50% of those using the airport installations. Brazilians and Argentineans share second place with 15% each. However, the Brazilians are the second most important on their own in terms of purchasing power, being responsible for 27% of our total sales, says Arrosa.
Wine tastings like this allowed InterBaires to interact with customers in a more dynamic way
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New duty free legislation, arrivals shopping and cruise port to boost tourism
A Travel Markets Insider exclusive report by Larry Luxner
Jamaican Tourism Minister Edmund Bartlett poses with Jamaicas Ambassador to the United States, Audrey Marks (left), during a recent trip to Washington, DC. PHOTO BY LARRY LUXNER
When it comes to the all-important tourist industry, Jamaicas best days are still ahead of it, says the countrys minister of tourism, Edmund Bartlett. Bartlett, 60, went to the University of the West Indies in Kingston, where he earned his bachelors degree in accounting and business. Elected to Jamaicas parliament in 1980, he served for 26 years in both houses. He has never actually worked in the tourism industry; rather, most of his private-sector career was with Texaco. In an exclusive interview with Travel Markets Insider, Bartlett whos been on the job for nearly four years said roughly two million tourists visited Jamaica by air and another million via cruise ship in 2010, generating $2 billion in foreign exchange and solidifying Jamaicas position as a leading Caribbean destination. That represents an increase of 4.7% over 2009 figures, though final numbers could put 2010 growth at 5%. He predicted that in 2011, tourism will grow by another 6.5%, thanks in big part to a 40% increase in cruiseship arrivals not to mention aggressive marketing, an innovative product mix and what he called adaptive pricing as a strategy to encourage growth during hard times. What you do is give value to the customer rather than reduce the price of the room, for example, offering three nights for the price of two. So when the market turns around, the value of your room has not been discounted, Bartlett explained. The customer has no notion that your room is priced below its true value.
IAADFS/MHA Issue March/April 2011
Airlift improves Contributing to Jamaicas success in 2010 was improved airlift. Jamaica was able to have more seats coming in for all seasons than the rest of the English-speaking Caribbean combined, he said proudly. The whole change in the aviation landscape required adapting our own strategies. Weve gone into partnership with American, JetBlue, USAirways and other airlines. We also work very closely with tour operators to secure charters from the Canadian market in particular. He added that Air Jamaica, which has merged with Caribbean Airways, seeks to refloat a number of routes that were suspended or discontinued. One such route is Baltimore, which is coming back with three flights per week to Montego Bay. Were also now served by AirTran. At the same time, legacy carriers like American and Delta have been increasing their rotations. What this meant was that Montego Bays airport, which has been newly refurbished, is now seeing larger volumes, and thats important for us in terms of jobs. Margaritaville now employs 175 workers at that airport, where it has two restaurants. Thats especially crucial considering that Jamaica lost 40,000 jobs during the recession, especially in the once-important sugar and bauxite industries. Tourism, meanwhile, saw a 3% rise in employment. Tourism now earns more than everything else and employs close to 90,000 Jamaicans directly and another 286,000 indirectly. It has economic influence over 10% of the entire population.
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The average tourist to Jamaica now stays on the island 9.3 days but spends far less on local purchases than do tourists visiting Puerto Rico, St. Maarten or St. Thomas. Visitors arent interested only in souvenirs, theyre interested in real shopping, he said. And some destinations, particularly St. Maarten and the U.S. Virgin Islands, have huge average expenditures, even up to $400 per person. The Cayman Islands is close to $250 per person. Jamaica is just under $100. Its very low because our shopping is not at the level it should be. New duty free law enacted However, Bartlett said passage of a new duty free law four months ago will allow for a much larger inflow of branded luxury products. This act will allow our duty free merchants to bring in high-end products like leather goods, eyewear and clothing, and to pay at the point of sale. Previously it was just jewelry, he said. The only provision is that such goods must be kept in a bonded warehouse and may not be sold for on-island consumption. Since the laws passage, Cartier has opened a new shop at Montego Bay airport, said Bartlett. The new duty free legislation will significantly expand the shopping experience in Jamaica at airports, duty free shops and anywhere in Jamaica. This is a whole new ball game. You could even establish shopping malls and designer outlets, he explained. Weve also amended the law to have incoming and outgoing duty free purchases at the airport.
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Previously, we had duty free shops only for those leaving the country. This gives locals a chance to buy duty free too. It will stimulate more commercial activity at the airports. Its a strategy were employing to help reduce the cost of on-ramp operations. At present, said Bartlett, cruiseship passengers spend about $93 a day, while stayover arrivals spend $125 daily. The new legislation, he predicted, will bump those numbers up to $105-110 a day for cruise arrivals and $130 a day for stayovers. That may not sound like much, but as Bartlett says, even $1.00 more times 9.4 days times 3 million passengers translates into additional sales of $28 million. The advent of casino gambling should also boost those numbers, he predicted. Casinos bring a different atmosphere to your destination, Bartlett told TMI. It also enhances the shopping experience, because more people will come to buy high-end goods as these high rollers visit a destination. They bring their families to do shopping. Experience has clearly shown that shopping is a big beneficiary of casino gambling. The cruise industry is also looking up, he said. New Falmouth cruise port welcomes first vessel in February Cruiseships had a difficult period. There was a repositioning out of the Caribbean and into the Mediterranean, but now were seeing a renaissance of cruiseship activities, he said. With the addition of Falmouth, which will accommodate Oasis of the Seas, we expect to see a 40% increase this year in cruises. On Feb. 17, the restored colonial town of Falmouth received its first vessel Voyager of the Seas following a $150 million facelift and construction venture between the Jamaican government and Royal Caribbean Cruises Ltd. Its a Georgian town, so we sought to restore the architecture and give it a faade, he said. Falmouth, located 12 miles east of Montego Bay along Jamaicas north coast, has already welcomed 25,000 cruise passengers to the port, which was scheduled to be inaugurated Mar. 22 by Bartlett as well as Prime Minister Bruce Golding, Transport Minister Mike Henry who was instrumental in getting Falmouth built and officials of RCCL and the Port Authority of Jamaica. The tourism minister says he is not concerned whether Falmouth might act as a detriment to Jamaicas two other cruiseship ports, Ocho Rios and Montego Bay: Our existing ports have a different appeal; they call for vessels of a different size. Falmouth will attract the megaships like Oasis of the Seas, while medium and boutique ships will continue to call on the other two ports. Falmouth has capacity for between 600,000 and 800,000 passengers a year, though Bartlett said he expects Ocho Rios to boost its arrivals from the current 340,000 to around 600,000 in the next two years. Jamaica has more attractions than any other English-speaking Caribbean port, he said. Besides, its a central stop on the Western Caribbean itinerary; you cant have a Western Caribbean itinerary without Jamaica. And when Cuba comes in, itll be even more interesting. Jamaica currently has around 30,000 hotel rooms, and Bartlett expects that
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to reach 40,000 in the next five years. He says this new surge of rooms will be more EP, with less of the mass tourism appeal so common to both Jamaica and its competitors in Cuba, Cancn and the Dominican Republic. The all-inclusive is a valuable model that has served the development of tourism very well in the Caribbean, and Jamaica in particular. It responded to affordability issues and enabled the development of critical mass in key destinations, which allows for better airlift. But this is clearly not the model being pursued by Jamaican tourism officials anymore. Rather, Bartlett and his team are encouraging the construction of lowdensity luxury resorts with less masstourism appeal. The tourism minister boasted that at 42%, Jamaica enjoys the highest rate of return visitors in the Caribbean. The loyalty factor is huge, he said. You go to any beach in Jamaica today, and I assure you that one out of every two people you talk to has been to Jamaica at least once before. I have the largest market at my doorstep. Theres so much more juice to squeeze out of America for us. There are so many gateways we have not yet opened. Thats one reason Bartlett doesnt appear particularly worried about the eventual opening of Cuba to U.S. tourism. English-speaking tourists are far more comfortable with English-speaking destinations, he said. When there is a choice of similar products, invariably the destination with the same language gets the benefit of the doubt. Bartlett said that in 2007 the year he became minister of tourism Jamaica got 163,000 visitors from Canada. Today, were at 330,000, and were expecting 350,000 for 2011, with a projection of 500,000 Canadians by 2015. This winter, in fact, I didnt have enough rooms to meet the demand from Canada, he said. The Canadian market is growing, so we may increase our arrivals without doing any damage to the market share of Cuba, Dominican Republic or anybody else. He added: We welcome Cubas return to mainstream tourism activities. Their proximity to Jamaica will be an asset to us, in terms of creating important packages that will enable visitors to have multiple experiences within the Caribbean. We see airlift being facilitated in this regard, as well as multi-destination marketing particularly for long-haul destinations. Visitors from places such as China, Russia, Brazil and so on tend to stay for at least two or three weeks.
In fact, he said the Caribbean could be marketed in those countries as a package, letting tourists visit Cuba, Jamaica, the Bahamas and the Cayman Islands all on the same trip. Our marketing is so strategically focused that we dont see Cuba getting people who should have come to Jamaica instead. And with only 1% of the U.S. tourism market, he said, theres so much room for growth out of the United States that to begin to talk about whatll happen when Cuba opens up is almost idle chatter. Cuba can get twice the number of tourists we get, and we still wont be affected because weve not tapped sufficiently into that market. American Airlines alone carries 23 million people through Miami airport every year. If I got only one million of that and Cuba got two million, wed still be better off than we are now.
Rendering of Jamaicas new Falmouth cruise port which has undergone a $150 million facelift funded by the Jamaican government and Royal Caribbean Cruises. On Feb. 17, Falmouth received its first vessel, RCCs Voyager of the Seas, shown above.
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new U.S. airports to operate charter flights to Cuba besides the three now authorized to do so: Miami, New York JFK and Los Angeles. (Ed. note: 8 additional airports were approved on March 8. See news on page 14.) Last month, officials of Cuba, Jamaica and the Cayman Islands met during the Miami International Boat Show to draft a strategy to handle the predicted influx of pleasure boats heading south once the travel ban ends. U.S. Coast Guard figures indicate that at least 600,000 boats in Florida alone are capable of making the 90-mile sea voyage to Cuba. The concern is that opening a floodgate of vessels would rapidly inundate Cubas few marinas. The representatives Commodore Jos Miguel Daz Escrich of Cubas Marinas y Nuticas Marlin SA, Dale B. Westin of the Port Authority of Jamaica and Neville Scott of the Cayman Islands say any relaxation of the U.S. travel ban to Cuba would effectively create a new Caribbean cruising ground encompassing the three countries. The three officials also agreed to form a Caribbean Marine Trades Association that would serve as an umbrella group to promote yachting tourism to the Central and Western Caribbean. Today, the Eastern Caribbean consisting of the U.S. and British Virgin Islands, Puerto Rico, the Bahamas and smaller islands south to Trinidad & Tobago is far more significant when it comes to yachting. Lisa Hamilton, president of the USVI Hotel & Tourism Association, said shes not particularly worried that the Virgin Islands would suffer once large-scale U.S. tourism is allowed to Cuba. This Cuba opening has been talked
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about for years, she said. There might be some impact on our demand, but we have a very distinct market the northeastern United States that we feel will continue to be loyal to the Virgin Islands. Mario Gonzlez, executive director of the Puerto Rico Tourism Company, feels much the same way. The opening of Cuba to the U.S. market for tourism will have an impact on the number of visitors well receive in Puerto Rico. However, that impact wont be as harsh as some may perceive no more than 50,000 the first year, said Gonzlez, citing a study done on that specific possibility. You need to conduct studies based on supply currently available in Cuba, rather than how many people will want to go, he said. The important thing isnt only the number of people who come to your island, but the quality of customers and what type of expenditures they make. With the development of the high-end luxury market, well be attracting a specific segment of the market that would not come to Puerto Rico if not for the brands and flags being developed. He added: Puerto Rico is not any less exotic because were under the U.S. flag. The fact that Cuba has been a forbidden place for U.S. citizens is of course an attraction. But that by itself does not mean we are going to lose a big chunk of market share. Rafael Romeu, author of an IMF study on that very subject, suggested that Cubas opening will prove to be a mixed bag for nearby countries. They would gain from redirected Canadians and Europeans who now vacation in Cuba, he says. But heavily U.S.-dependent destinations that do not have the ability to capture redirected Canadians and Europeans displaced by U.S. tourists will lose. Some of the most vulnerable include the Turks & Caicos Islands, the U.S. Virgin Islands, Cancn and perhaps Jamaica. I. Nelson Rose, one of the worlds leading experts on gambling law, predicts Cuba will have casinos within the next 10 years with major implications for Cubas Caribbean competitors. The initial breakthrough will probably take place on cruise ships, with casinos, returning to the Port of Havana, he wrote in the Mar. 4 edition of RGT Online, a gambling website. Initially, gaming will only be permitted on the high seas. But it is a short step from there to allowing the casinos to be open while the ships are docked. Rose, noting that bingo machines are sweeping Latin America, said its relatively easy to distinguish these gaming devices from true slot machines, at least for political cover. True casinos, with true slots and table games, are also common in much of Central and South America but even more so in the Caribbean. A free Cuba will quickly allow casinos to reopen, in highquality hotels designed for, and possibly even limited to, tourists. Michele Paige, executive director of the Florida-Caribbean Cruise Association, said the Cuba factor could cut either way. Theres a lot of pent-up demand for Cuba, and as cruise executives were equally very excited about the prospect, she said. Once Cuba opens up and as soon as its feasible, the cruise industry will be there. Were very successful at taking passengers where they want to go.
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as a duty free exclusive, continues to be selling very well, says Azel. SMT was the first retailer in the Caribbean to carry it. SMT has introduced the highlyrated Ron de Barrilito, which is made in Puerto Rico in 2 star and 3 star varieties. The brand is developing a cult following but is not always easy to find. Crystal Skull Vodka is also doing very well. And Azel reports that Hennessy White is also developing a strong following.
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Miami-based Actium Group recently celebrated its sixth year in business sometimes considered a critical time for many fledging companies. But the luxury goods, spirits and beauty distributor continues to strengthen and grow: We had a tremendous year in 2010 our best ever both with strong organic growth and by recruiting new brands and territories, Actium President Philippe Giraud tells TMI, adding that the company has been growing every year since it was started, including during the 2009 crisis. Actiums net sales, which include its new business, surged ahead by 179%, almost tripling, says Giraud. Organic growth was pegged at a more modest but still impressive 61% over 2009. Actiums main business is divided into two main divisions, one covering Beverages and the other Fashion & Beauty, which is practically a stand-alone business.
The Tumi luggage store in Mexico City.
Champagne, Spirits and Water Actium continues to be extremely focused on its four main beverage brands, says Giraud. Leading the way is Scotch whisky Whyte & Mackay, for which Actium is the agent for all local and duty free markets in Latin America and the Caribbean, as well as North America travel retail. The division also represents super-premium Voss water and Laurent-Perrier Champagne, both of which expanded their territories last year. Svedka Vodka rounds out the spirits portfolio. In January 2010, Actium expanded its territory for Laurent-Perrier Champagne to include the North American duty free market, and now represents the brand in about 38 markets, including most of Latin America and the Caribbean, in both local and duty free channels. Our Laurent Perrier sales were up 109% last year in the region, a combination of both organic growth and new listings,
says Giraud. And we received a very nice listing for Laurent Perrier with Dufry Americas in many of their stores. That was a significant travel retail new listing for us. For Voss, Actium is now handling all of Latin America and the Caribbean, giving it all of the Americas except the U.S. and Mexico local markets. Our Voss business grew organically by 43%, but it doubled with the new business, says Giraud. In general, Scotch sales were down somewhat in Latin America last year, due to problems in Venezuela, one of the key markets in this whisky-loving region. Officially Scotch shipments to South America were down by 9%. But Brazil was up and our Whyte & Mackay business grew organically by more than 100%. In fact, we grew everywhere, including in Venezuela, says Giraud of the brand, which includes The Dalmore and Isle of Jura. Giraud also reports the first travel retail listings for the Whyte & Mackay brands in the region, with International Shoppes, Dufry America and Fain & Swanson, with several other deals due to close shortly. Svedka Vodka also had a very good year, with sales up by 83%, although from a smaller base, with steady growth, says Giraud. Fashion & Beauty One major change in Actiums Fashion & Beauty division was the appointment of Paul Petit in October to head up the division after Hanan Fraysse left to pursue her own business. Petit, with 18 years in international management in the cosmetics business at such companies as Aveda, Cartier and Liz Claiborne brings a strong background to the role. Most recently, Petit was vice president of
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international at Clarins in Paris, in charge of Fragrances. Actium reports even more development in its beauty division. Existing brands LOreal and LOccitane both had very healthy increases, expanding territories and in the case of LOreal, new brands. Actium took on LOreals The Body Shop last year, and has successfully opened in Mexico with UltraFemme. In an important new addition, Actium is now handling the cruise business for the Puig fragrances. Actium has a strong expertise in the cruise sector and Puigs cruise business has increased 40%, says Petit. We now have the Puig brands on 30 ships with Harding Brothers, Starboard and Dufrys Flagship with new openings all the time. The cruise business is very detailed work, that entails constant attention, says Petit. In another important development, Actiums Fashion & Beauty division also began working with Juicy Couture, concentrating on inflight for the trendy fashion accessories. Juicy Couture is currently being tested onboard Delta, through DFASS, and has been listed on LAN. We understand the DNA of the brand and are working closely with Juicy Coutures Galia Sandres, says Petit. When Actium acquired an agency agreement for premium luggage brand Tumi that went into effect in January 2010, the company knew this was an opportunity
to grow the business for both companies. The agreement covers Latin America and the Caribbean, local markets and travel retail; as well as North America travel retail. The business grew 49.8% in 2010, and this was all organic growth, balanced between North America and South America, says Giraud. For 2011, Actium will be working with Tumi on the assortment and is looking at opening some free-standing stores and shop-in-shops, particularly in Mexico and Brazil local markets. Luxury Retail Actiums Luxury Retail division is currently made up of two Herms stores, a 5,200 sq-foot boutique in Santiago, Chile that Giraud acquired in 2008; and a 160 sq-foot boutique that opened in Panamas
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upscale Multi Plaza Mall in Panama in December 2009. The Herms business in Chile which stayed strong throughout 2009 was up by 31% in 2010. The Panama store, which is a 51/49 partnership between Giraud and Faisel Abbas of St. Honore, has not been open long enough to have comparable sales. We are the only company in Latin America and the Caribbean authorized to have multiple doors, says Giraud, commenting that the relationship with Herms has opened many doors for the company. We are looking at expanding this division, looking at some other opportunities for Herms as well as looking for some other high-end retail brands, says Giraud. Luxury Retail continues to fit right in with our strategy.
March/April 2011 IAADFS/MHA Issue
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Swarovski is rolling out its Crystal Forest concept, a revolutionary new look shimmering with crystals and light, to select boutiques worldwide, like this one in Santa Fe Mall, Mexico.
One on One with Swarovskis Gonzalo Almada, Director for South America & Nelson A. Rivera, Regional Sales Manager for the Caribbean & Mexico Travel Retail
Almada says that the focus this year is on distribution strategy and the market landscape. One of the biggest challenges in Latin America for a company like ours is to find the right distribution. The region has a lot of potential, but if you look at a market like Brazil, which is an amazing market, you see it is very difficult to cover. Brazil has so many millions of people who can afford our products, but they are spread throughout the country and how can you reach them? You dont have department stores. So we have to find the right distribution. This is the same challenge in the rest of the region. Mexico is another example. So we are doing a lot of studies throughout the region, and we are moving forward. And the business has been growing a lot over the past four years, so we are adjusting our structure to the market needs. We are hiring more people, especially in Mexico and Brazil, said Almada. Swarovski is also introducing new categories this year, like the eyewear collection from Marcolin and a perfume, developed with Group Clarins. I am sure these are very promising and our consumer will really like them very much, he said. We are a very unique case. It is very rare for a company to own the material it is made from. When you think of a crystal, the name Swarovski immediately comes to your mind. Nowadays the market is so competitive, and while we have some competitors in the fashion jewelry area, we do not in the crystal.
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Crystal Forest is very important to the company this year. We just opened the first boutique in Mexico in February, but we have another 67 projects in Latin America to open this year, divided between boutiques, shop-in-shops and corners. We also have 10 Crystal Forest projects in the Caribbean and Mexico Travel Retail markets. To handle all these new projects, we are opening an architectural department in Miami. The corporate team in Europe develops all the boutiques for us, but it is the regional team that takes care of the follow-up. Each boutique is its own project and needs its own follow-up. Almada reports that Swarovski had a very good year in 2010: 2009 was a great year also for Swarovski. In Latin America we have been growing for the last 4-5 years, even though in North America we suffered a little more, but overall business for the company the last four years has been really good. We did not have to face what many other companies had to face, probably because our product is so unique and because Swarovski is more affordable and we attract many different consumers. So we went through the crisis very well. We are very proud of how we went through this but when you face a storm, you have to do something about it. So we have come up with this new scenario, and have come up with new collections, and Latin America is the region that has been growing faster than any other region the last three years. The brand is growing stronger and stronger in the region and we have very strong expectations for 2011 and 2012.
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cruise industry partners, but the company will be showing the new lines to all its partners at the Duty Free Show. Bottazzi emphasizes that the company is not walking away from Bijoux Terner, but rather putting itself in a position to cater to some channels it has not been able to enter with its lower priced merchandise: Our Bijoux Terner brandour $10 price point continues to be extremely sexy and powerful for us and we continue to be very focused on that. But there is incremental business to be had. There were channels that we were missing because we didnt have enough value at $10. But now, when we are bringing in products that are worth $60-80 in the normal market and sell them at $30, that is powerful, Bottazzi explains. In fact, Bottazzi points out that the company is taking the same concepts of incremental value and product variety and assortment, for which Bijoux Terner is well known, and upgrading them into the new price points. In our Inspiration Room we have Pashimas that have leather fringes or are made from jacquard. We have woven silk ties with matching cufflinks, instead of just the printed silk. When you bring all those real product details that you find in highend department stores and put them at a $20 price point, or $30 price point, and you package them in a way that is very highend and very exclusive, when you present it this way, the products blow out the door. With the worst of the crisis apparently past, and travel numbers recovering strongly, the market may be more receptive to the new brands. Bijoux Terners business is now very good, says Bottazzi. The cruise industry is booming. South America is just exploding. The U.S. is stable. And Europe is actually showing interesting signs. We like what we see in some places (Las Vegas
continues to lag). And we have outstanding relationships, outstanding business, great distribution, great locations. The Caribbean is doing very strong business for us. The numbers in our comp stores are very positive. Bottazzi credits the companys good operators and partners for the positive results, but adds: We have also done a lot to support our products and assortments, and our price point continues to be very powerful. Now more than ever. I think that we have learned that there is an important element of our business model and it is not necessarily the specific price point. Rather, it is that there is value in the price point. Whatever the price point is, todays consumer is looking for a lot more value than the price they are paying. Bijoux Terner intends to keep delivering this value, even as it is expanding to different price points, says Bottazzi. We are not one company, one brand, one price. We are one company with multiple brands that will make all of our clients successful. Thats who we are going forward. We are using all the learning that came with this great, wonderful Bijoux Terner brand. We are using all the same principals, the same supply chain, the same design process. Because design is not just a matter of having good taste, design is understanding what will sell. The challenge for our great designers is really to understand how to do research, how to plan a calendar, how to choose the key materials that are out there. We are having an amazing conversion ratio. Once consumers walk in and they get it, they dont walk out with empty hands. So we are always finding ways to help our partners get consumers in the store. Once they are in, its done.
Bijoux Terner is introducing five new trends this season, some of which are shown here, such as the 70s, the romantic, the minimalist. The company is also investing in customized A La Gate Carts(l) to help attract shoppers into their stores.
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Tous Curaao has entered its 3rd year, building its loyal customers and growing positively each year, says Meena Hemrajani, director of La Rouge, which operates the store in Willemsted. This past Christmas season, Tous Curaao won the designation of Best Window in downtown Willemsted for its Make a Wish window, shown at left. Currently Tous producers of the famous Spanish jewelry and accessories line sporting the world-known bear emblem--has more than 400 stores in 42 countries around the globe, including over 20 stores in the U.S. since 2002. Last year Tous opened in Rockefeller Center in New York City. According to Hemrajani, the Tous brand recently announced it would launch an exclusive collection that reproduces the worlds most famous shoe, Manolo Blahnik. In this exclusive collection, the famous shoe has been turned into a pendant and will be available at POS in major world cities and luxury shops around the globe starting in March.
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Swedens Capella Industries enters Americas travel retail market with award-winning Cielo ladies watches from Lambretta
The Americas Travel Retail market now has access to a bright, affordable, award-wining casual timepiece with a difference from Lambretta, one of the brands from Capella Industries of Sweden. Cielo is represented in the Americas market by Hanan Fraysses Luxury Consulting company. Cielo (Italian for heavenly) is the latest addition to Lambrettas ladies collection. The slim and stylish watch comes in seven attractive colors and is accessibly priced. Winner of Frontier magazines Buyers Forum in April 2010, Cielo is earning excellent sales wherever it has launched in the past year, reports the company. The watch comes in an amazingly slim package only 250x50x10mm in size, and weighs only 52 grams, making it particularly appropriate for inflight sales. Cielos ultra-slim and color-coded revolutionary packaging allows airlines or shops to store three boxes where normally only one traditional box would fit. For duty free stores, cruiseships, etc., Capella has developed a space efficient, eye-catching free access display that is able to stock all seven Cielo colors. Cielo has a recommended retail price (RRP) of 60/US$75 and a travel retail price of 45/US$56.
determine what human resources structure they need to have; or what the clients in that territory need to have in order to enter the market. These are short-term projects. The client is buying your expertise on a short-term basis. Fraysse explains that the other division is the Retail is Detail portion, where she is representing a state of the art technology that is based on understanding the in-store activities of consumers. The technology looks at everything from penetration rates, conversion rates, average baskets, what we call heat maps, all based on understanding in-store customer activity and behavior. This information will eventually help the marketing team to get a better understanding of marketing and merchandising needs in-store. And this would be critical knowledge in category management, says Fraysse, who is responsible for developing the technology in the travel retail industry. This is a state-of-the-art technology, and is used by a lot of brands, department stores, leading retailers and many major multinational companies. I believe that the travel retail industry today really lacks a lot of information about
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the customer behavior and how much the consumer is buying for and how much time he is dwelling and looking at a specific brand or a specific fixture in a store. Just getting a better insight into this kind of data would definitely help the retailer and the brand have a better understanding of their business. This results in better product offers, better communication, revenue management, stock management and even staff management, says Fraysse. For more information about how Luxury Consulting might help your business, please contact Hanan Fraysse at Tel:+1-305-984-8414| hfraysse@ luxuryconsulting.us
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Luxury watch brand Philip Stein opens boutique in Grand Cayman; will open in Jamaicas Falmouth this summer
The second Philip Stein Watch Boutique in the Caribbean opened in Grand Cayman in February in partnership with Island Companies, reports Philip Stein agent in the Caribbean Haygo Demir. The first Boutique for the luxury watch brand, which embeds natural frequency technology in each of its time pieces, opened in 2009 in Cozumel with Diamonds International in the Forum Shops, says Demir. Both boutiques were designed and built by Artco Group. Coming up next, a Philip Stein boutique will also open in the newly renovated cruise port at Falmouth, Jamaica sometime this summer. Although ships began calling on the newly renovated port in Jamaica on February 17, the shops in the port are not expected to open until this summer. Falmouth, which just underwent a $150 million facelift funded by the Jamaican government and Royal Caribbean Cruises,
The Diamonds International Philip Stein Boutique, located at the Forum Shops in Cozumel. Right. The Philip Stein Boutique opened last month in Grand Cayman with Island Companies.
is viewed as a lifeline of sorts for Jamaicas tourism, says Demir. The new port will give Jamaica an international presence, with Diamonds International and Dufrys Colombian Emeralds both scheduled to open for the first time.
This will make Jamaica a more credible shopping destination, although the new stores might give some of the local operators a run for their money, he commented.
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since 1846
Tortuga Rum Company founder Robby Hamaty at the Stoli Elit ice bar constructed for a promotional party held inside a huge walk-in freezer in Grand Cayman last month.
Tortuga holds an Over the Top Stoli ice party in Grand Cayman
Party goers in tropical Grand Cayman had to bundle up warmly to attend a once-in-a-lifetime event held by Robby Hamaty of Tortuga Rum Company in February. The party, which was put together to promote Stolis top-of-the-line vodka product, Elit, which is relatively new to Cayman, and represented by Tortuga, was an ice party and it was held in a freezer. It was a really big freezer, says company founder Robby Hamaty. The Grand Cayman-based Tortuga Rum Company had recently built a 27-foot by 70-foot walk-in freezer for one of its other businesses. When a new promotional company called Over the Top wanted to launch themselves with a signature event, Tortuga delayed the switch over of the freezer for a few weeks in order to hold the party. In warmer news, Tortuga has become the exclusive retailer in the Caymans for Sharper Image, and is installing the merchandise in several of its Grand Cayman stores, including at its Taste of the Caribbean store in the airport, at its store at the Royal Watler cruise pier, at its Turtle Farm location and at its main factory store, which is a popular tourist destination. Hamaty says he will open a stand alone Sharper Image store as well. Tortuga is also the exclusive Bijoux Terner retailer on the island, and he reports that the brand is doing exceptionally well. In an important development for the Cayman Islands, Hamaty reports that the island is waiting for the go ahead to finally construct a two finger cruise pier that will be able to accommodate four ships. At this time, Grand Cayman is still tendering passengers into the island, with no direct docking. Hamaty says that it will be at least a year and a half until the project is completed. If we continue to have tendering, we are going to lose tourists in a big way, he commented.
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CREATION OF A FINE FRAGRANCE
American designer Narciso Rodriguez reveals Light, Purity and a touch of musc
One on one with Parfums Narciso Rodriguez Vice President Christophe Fabrega
Beaut Prestige International is this month celebrating the global launch of the newest feminine fragrance from American designer Narciso Rodriguez, who personally presented the new fragrance to select international media at a reveal event in Miami last fall. essence eau de musc is a lightimbued, sophisticated eau de toilette that evolved from and was inspired by Narciso Rodriguezs award-winning essence fragrance launched in 2009. It features fresh citrus top notes that join with the powdery heart of white musk and iris mist. The airiness of the new scent is reflected in a slimmer, longer metallicized bottle described as sylphlike. Christophe Fabrega, who recently joined BPIs Parfums Narciso Rodriguez as Vice President following six years as Director of Marketing International Development for Chanel, said that Miami represented Light and Purity, which is the heart of essence. The Narciso Rodriguez fragrances are designed to create a special moment with a small group of people, they do not shout, Fabrega told Travel Markets Insider during a private interview. These are true luxury products. What you see outside is the truth from the inside. Our initial Narciso Rodriguez fragrance, For Her, was created in 2003 with the original essence not following until 2009. Narciso Rodriguez is the soul of the company. Our ambition is to make Narciso Rodriguez a major player in the perfume industry, creating great and modern fragrances that are inline with the Narciso Rodriguez fashions. With essence we are creating a new benchmark and the momentum is building for the brand with the reviews. For Her and essence have won 10 awards worldwide, and are completely in line with the spirit of the house, says Fabrega. The name essence communicates the importance of the name to the house of Narciso Rodriguez. And musk is a special ingredient in For Her and in essence, as well as in eau de musc. So we incorporated musc into the name. The musk element reflects Narcisos clothing designs. Musk expresses femininity, true elegance, something very classic, and when you look at Narcisos fashion, you immediately see the link. His fashion is very elegant, very chic, and very soft and sentile. To me musk is the real link between fashion and fragrance. Musk is at the heart of all the Narciso Rodriguez fragrances. The initial
Parfums Narciso Rodriguez Vice President Christophe Fabrega and Desigher Narciso Rodriguez at the unveil of essence eau de musc in Miami.
idea behind For Her was an Egyptian musk. Narciso found a little bottle with a drop of this oil inside. This was his inspiration. Narciso was able to give the perfumers this bottle with the oil inside, which was fantastic. With essence, we used a white musk, which is one of Narcisos favorite fragrances. There are many, many varieties of musk. The art is to choose the right musk for the right fragrance. eau de musc is very fresh for a musk fragrance. The idea is to create a tension between the sensuality of the musc and the freshness of an eau. With these fragrances as a base, Fabrega says that the company is looking to the future. We are looking at the long term development of the brand by concentrating on our main pillars. We have our core business with For Her and then slowly but surely we developed essence. We are not in a hurry. We are taking our time to develop the business. It took us more than two years to develop eau de musc after essence. We do not want to confuse our consumers.
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sales people, who know how to speak about the fragrance. One way that BPI is working to develop the brand is to relate it to special experiences, so that the consumer feels an affinity for the brand and for the fragrance, explains Fabrega. In a special initiative to prepare the market for the launch of Narcisos new fragrance, BPI established VIP lounges in strategic airports in Paris, Milan and London. The lounges were located in an open space in the airport, post checkin, arranged with sofas and tables as a place where people could relax, and be introduced to the fragrance. Fabrega explains: We still have to recruit new customers and make them know that the brand exists. These lounges created awareness of the Narciso Rodriguez brand in a non-traditional, non-aggressive way using an intimate and inviting setting. We invited consumers to smell the fragrance, to discover Narciso, and to share a moment with us, without saying Buy it now. Despite its non-commercial design, Fabrega says that people had such a positive experience in the lounge that afterwards they went to the Travel Retail shop and bought the brand. The sell-out of our existing fragrances increased dramatically. In Paris, during the time the VIP lounge was set up, the sell-out rose by 255%. Narcisos international appeal is strong and growing. Italy is the top local market for the brand globally and the Americas is an important market. In local markets, Brazil is #1, followed by Venezuela, Peru and Argentina. In Travel Retail, Brazil and Argentina are the top selling markets. In the U.S. Travel Retail, some areas are stronger than others, such as at Miami International Airport, for example, reports Regina Lopez, Brand Manager at Beaut Prestige International, in Miami.
For BPI, the product is always the hero, says Fabrega, explaining that worldwide, Narciso Rodriguez perfumes are in only 6,400 doors out of the 22,000 doors available in selective distribution. So we are in very limited, very selective distribution. We have consumers who love the fragrance and our staff is comprised of passionate, well-trained
Gerard Pichon-Varin, General Manager BPI, The Americas TR & Latin America Local Markets
Gerard Pichon-Varin, who joined Beaut Prestige International as General Manager of the Miami office in 2008, brings a strong background in luxury fragrances and accessories to the role, having held senior positions in Europe and the Americas with, among other companies, Sanofi Beaut, Guerlain and Boucheron, where he was President of the U.S. subsidiary in New York. At the helm of a company that is 100% involved with fine fragrances, Pichon-Varin sees the main challenge facing his company as one of continuing to grow its market share in the region, both in travel retail and in the Latin American local markets. Says Pichon-Varin: Travel Retail was most affected by the crisis of 2009, so our first challenge had been to come back. For us, 2010 was a fantastic year. Globally, BPI increased its business significantly and passed the 2008 figures, which were very strong. The Travel Retail sector has also improved, although it has not yet passed the 2008 numbers but it will. In this region, the Latin American local markets are driving the recovery. Even during 2009, these countries maintained market share and some places showed small gains. Our sales have been growing for the past 4-5 years. Our challenge is to keep this growth going. We are being helped by some very strong local markets, specifically Brazil, Argentina, Colombia, and even Venezuela. Issey Miyake, for example, is very strong in the Latin countries, a top 10 brand. LEau dIssey Pour Homme is a top 5 brand in the local markets. Pichon-Varin points out that Travel Retail is an important part of the BPI business in the Americas, more so than in many other parts of the world: The way our brands are worked in the local market makes the success in Travel Retail. At the same time, airports are windows for our brands into the local market. The strength of BPIs core lines is the companys biggest opportunity for the future. LEau dIssey, LEau dIssey pour Homme, and Jean Paul Gaultiers Classique for women and Le Male for men, which have been top sellers for more than 15 years now, along with Narciso Rodriguezs For Her, are the pillars that will grow our business. They are classics and we are very careful to nurture and maintain them with animations, with special limited edition collectible editions. These encompass our values, he says. The BPI values are based on building long-term relationships with our designers, to make them successful in fragrance by using a very qualitative and innovative approach in the creation and the marketing
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of the products. The path that we follow at BPI is very clearly defined for usto animate and promote our pillars and only introduce new fragrances when it is appropriate. This year, BPI will be introducing a new brand into the portfolio, the first fragrance for world renowned Lebanese designer Elie Saab, the Haute Couture designer known for his romantically beautiful gowns. BPI signed a license with Saab in 2009 and this fragrance will launch worldwide in early fall. This is the particular know-how of BPI, who has a history of identifying fashion designers with whom we have these common values and developing modern successful fragrances with them over the long-term, says Pichon-Varin. BPI will be giving visitors to its booth in the Atlanta Room at the Duty Free Show in Orlando a sneak peek of the new Elie Saab fragrance. The company is returning to the Show after an absence of several years: It makes sense for us to be here now, says Pichon-Varin. Each of our designers represents a specific part of the world, he says. Elie Saab is from Beirut; Issey Miyake is from Japan, Jean Paul Gaultier is from France and Narciso Rodriguez is American/Cuban. But each one is an icon in his particular field.
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With his latest feminine fragrance, Womanity, designer Thierry Mugler appears set to break as many rules as he did with his now iconic Angel, which ushered in the original gourmand scent. Each element of the projectthe juice, the bottle, the technology, even the theme, is an innovation. Essence Corp. rolled out Womanity through the Americas last fall. Shown above, the launch in Grupo Wisas La Riviera stores in Mexico City Airport (left) and Panama (lower right.)
Essence Corp.
Miami-based distribution company Essence Corp. has been tapped for several significant additions to its Caribbean portfolio over the past few months, which added several prestigious brands to business. In November, it was announced that the company was assuming the exclusive distribution of Herms Parfums products in the Caribbean, effective Jan.1, 2011. Herms Parfums is delighted to partner with Essence Corp. which will allow the Herms brand to further expand within the Caribbean Islands territories, said Catherine Fulconis, chief executive officer of Herms Parfums, in a letter signed by Fulconis and Essence Corp. president, Jean-Jacques Bona. In December, Beaut Prestige International (BPI) announced that it was changing the way it would be distributing its brands in the Caribbean. Instead of continuing to handle the territory in-house, BPI appointed Essence Corp. to be its distributor in the region. The change, said BPI General Manger Gerard Pinchon-Varin in a letter to customers, would improve our mutual business and the efficiency of our supply chain. He went on to add: The professionalism and integrity of Essence
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The creation of Aura by Swarovski fragrance required about 2,000 tries before we found the right formula and Swarovski remained fully involved in the process, from start to finish. Aura by Swarovski: all the grace, the magic, the magnetism and the energy of light transform a woman. Crystal is transformed into liquid energy to become luminous fragrance. Jol Palix, President of Clarins Fragrance Group
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After opening 1st door in South America last month, the award-winning concept will open next with DFA in the airport in Salt Lake City
Kiehls garners awards, new shops as it rolls out across the Americas
Kiehls Since 1851, the venerable New York-based purveyor of high quality skin and hair care preparations, is rolling out across the Americas. Last month Kiehls opened its first travel retail store in Buenos Aires Ezeiza International Airport in Argentina. Next up, Duty Free Americas, Inc. (DFA) will operate a 172 sq-foot Kiehls store in the international terminal of Salt Lake City International Airport (SLC), as part of the concession it announced in mid-March. The SCL location is the fourth U.S. airport store for Kiehls. DFA operates Kiehls stores at New York JFK and Miami International Airports. HMSHost operates the Kiehls store at Hartsfield-Jackson Atlanta International Airport. The opening of the 160 sq-foot Kiehls shop-in-shop at Ezeiza Store 22 marks the companys first step into a South American airport. Like the other airport locations, the Ezeiza shop features Kiehls signature fun apothecary aesthetic and its unique design and decorations show off the blend of cosmetic, herbal and pharmaceutical knowledge for which the brand is known since its founding in 1851. Among the signature design touches are a modern bronze and crystal chandelier. This is an updated take on
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the crystal chandeliers that have adorned the Kiehls flagship store in New York City for years. Each store also features vintage photographs and mementos that take customers through Kiehls rich family history, and replicated exposed brick wall that evokes the old-world, quality character of Kiehls in its original East Village neighborhood. Kiehls at ATL wins Best New Retail Concept from ACI-NA The Kiehls Since 1851 store at Hartsfield-Jackson Atlanta International Airport, which was opened by Parbel of Florida in association with HMSHost in 2009, was awarded Best New Retail Concept 2010 by the Airports Council International for North America this past November. The competition was fierce but Kiehls successfully demonstrated its strong principles in providing efficacious products, excellence in customer service, quirky merchandising and impeccable brand image, Gabriela Rodriguez, Division Manager of Kiehls at Parbel told TMI. The award was received by Jim Schmitz, Vice President of Merchandising and Retail Concepts at HMS Host, the store operator at ATL.
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Kiehls in Atlanta
The Kiehls store was also ranked as Best Shop of the Month in the Hartsfield Airport by the Atlanta Airport Authority this past September, says Rodriguez. I want to personally thank all the team at HMSHost as well as the forwardthinking airport authorities who believed in our innovative concept and strong sales potential, she says. We are pleased to see Kiehls receive more and more recognition amongst its peers and travel industry leaders.
www.ferragamo.com
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Giorgio Armani launches Acqua for Life challenge, a global solidarity campaign
the problem at its root. Long aware of the work carried out by Green Cross International, which strives to meet the interdependent global challenges of peace-keeping, reducing poverty and preventing environmental degradation, Giorgio Armani offered to make two of his most famous fragrances, Acqua di Gi and Acqua di Gioia, the vehicles for the Acqua for life campaign. As of March 1, 2011, every bottle sold will generate a donation of 100 litres of drinking water per year to children and their communities. The participants will then be invited to double their donation of 100 litres of drinking water by going onto the internet. A unique code per carton will allow each person to become a member or founder and create his or her own support group for this operation. The facebook application - www. facebook.com/acquaforlife - will allow each participant to create their own community, send their own promotional kit and invite their friends to join the movement. In this way, everyone shares the awareness-raising message and creates a buzz via their network. Participants will be able to bring their friends onboard creating a viral effect. By joining the community created, these friends will automatically donate 10 litres of water. The more members, the wider the reach, the more communities and the more funds collected. The statistics available will allow each user to measure the day-to-day activity and development of his or her community. Travel retail will be participating with the campaign through Acqua for Life animations and visuals in airports throughout the world.
Giorgio Armani has launched a global information campaign to raise peoples awareness of the scarcity of water and the associated problems for people who do not have ready access to this ever-more precious resource. Launched globally on March 1 on twitter, among other platforms, Acqua for Life will reach its height on March 22, World Water Day, which was initiated by the United Nations following the Rio de Janeiro Summit in 1992. The goal of the Acqua for Life challenge is to provide a minimum of 40 million litres of drinking water this year to populations in need. Nine hundred million individuals do not have access to safe, clean and healthy water for their daily needswater that is essential for drinking, eating, guaranteeing a minimum of hygiene and maintaining ones health. When Giorgio Armani decided to become involved, he wanted to tackle
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ck one unveils first global advertising as it launches new ck one brand lifestyle lines
Calvin Klein launched the first global advertising campaign for the ck one brand last month. Building on the iconic visual legacy of the brand, the inaugural advertising campaign for the new ck one brand lifestyle lines debuted around the world on February 23, leading up to the full reveal of the campaign a week later, on March 1. The launch, which took place across multiple digitally integrated platforms on-line, mobile, print, and outdoor were all linked by dynamic creative. The campaign was conceived by consulting creative director Fabien Baron of Baron + Baron, working with CRK, Calvin Klein, Inc.s in-house advertising agency. The multi-faceted campaign for ck one will be the largest digital initiative in the companys history to date. The global hub of the ck one brand and campaign will be the newly launched ckone.com, which has been designed as the designated destination for all consumers and fans to personally experience the brand and learn more about the lifestyle, products, campaign and featured talent. Interactive, user-based experiences will be a key component of all aspects of the campaign and events that surround it and social media will be a powerful component of the ck one experience around the world. In addition to the interactive video content featured on the site, ckone. com users will be able to generate their
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own content and create conversations around that content via social media platforms like Facebook and Twitter, making this content viewable and shareable with friends and fans globally. User generated content will not be separated from the cast content, but will rather be positioned alongside the cast videos. The site will be available in 11 languages and have a global retail store and e-commerce locator. This is an important global multiproduct launch and represents the companys largest digitally-focused campaign to date, said Tom Murry, president & CEO, Calvin Klein, Inc. The emphasis on social media and the interactivity of this campaign serve to redefine the ck one brand for a new generation. The creative is exciting and strong and the multi-prong platform is on target to reach a younger demographic, while remaining true to the legacy of the iconic ck one brand. Beginning March 1, the outdoor campaign was featured on LED billboards in high impact locations in New York City and Los Angeles, as well as key sites in Seoul, Rome, Madrid, and Barcelona. Starting March 1, the full outdoor campaign will roll out further to Paris, London, Milan, Hamburg, Shanghai, Guangzhou, Hong Kong, Singapore, Sydney and Melbourne, among other key cities.
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The imagery for the campaign was captured during a multi-day shoot in New York City by renowned fashion photographer Steven Meisel, who shot the original campaign for the launch of the ck one fragrance in 1994, setting the tone for this powerful brand. The campaign imagery was filmed and all of the print images are still captures from the video footage. The campaigns dynamic creative brings together the mens and womens jeans, underwear, and fragrance categories with one unified concept featuring a cast of more than 30 distinct men and women who embody the authentic individuality that is such an inherent part of the iconic ck one brand. Some of those featured are professional models, musicians, performers, dancers, and artists, while many of those featured in the campaign were cast on the street around the world and represent a wide and different range of backgrounds, nationalities, and talents. Ck one, in conjunction with the launch of the new lifestyle line of jeans, underwear and swimwear, and its first global ad campaign and new website, will become the exclusive, global sponsor of MTV PUSH, MTVs breakthrough global artist showcase. As part of the sponsorship, ck one & MTV PUSH will host live music events in five cities, across three continents, including Austin, London, Berlin, Beijing, and Mexico City.
2010 Steven Meisel; Featuring Ian Mellencamp, Robert Evans, Wang Xiao, Alice Dellal, Aaron Frew, Viggo Janason, Eric Ramos and others
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DFA chosen as new duty free concessionaire at Salt Lake City International Airport
Stores will feature new beauty concept
to Jerome Falic, Chief Executive Officer of Duty Free Americas. DFA will also sublease one of its locations to Sweet Ventures, Inc., whose Rocky Mountain Chocolate Factory franchise has historically been successful at SLC. DFA is excited to be a part of Salt Lake Citys commitment to expand and improve upon the Airports overall retail concession program by offering international passengers the opportunity to purchase duty free goods, comments Falic. Based on our strong relationships with the suppliers of the worlds most popular luxury brands, our operating expertise and our familiarity with the international passengers served by SLC, we have every expectation that DFA will create an exciting retail offering at the Airport. We intend to bring to SLC the very best in customer service, as well as outstanding Duty Free Americas, Inc. (DFA) announced that it was recently selected as the new duty free concessionaire at Salt Lake City International Airport (SLC). SLC services international flights to Tokyo, Paris, Mexico and Canada. DFAs operations at SLC will consist of four travel retail stores. In the International Terminal, DFA will operate a 1,612 square foot duty free store and a 172 square foot Kiehls skin care and hair care store (see page 70). The Kiehls store will be only the 4th U.S. airport location for this increasingly popular brand. DFA reports that it has enjoyed great success with its Kiehls stores at JFK and Miami International Airports. Terminal 1 at SLC will feature DFAs new Glamour Walkway concept, a store that will carry a wide assortment of beauty and accessory products, according brands at attractive duty free prices. DFA is the largest tax and duty free specialist in the Western Hemisphere. The company now operates 110 duty free stores in the United States, including 47 U.S. airport stores and 63 border stores on the U.S.-Mexican and U.S.-Canadian borders. The companys affiliates also operate duty free stores throughout Latin America and in Macao.
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Herms:
Herms perfumer Jean-Claude Ellena shares his inspiration for Un Jardin Sur Le Toit
Herms launched the fourth fragrance from its collection of garden-inspired fragrances in Miami earlier this month, with a personal appearance from Herms esteemed in-house perfumer, Jean-Claude Ellena. The launch took place on the roof of one of South Beachs seaside boutique hotels, The Betsey, which had been transformed into a magical garden for the evening. An appropriate setting, since Un Jardin Sur Le Toit translates into A Garden on the Roof, and is actually based on the hidden garden that lies on the roof of Herms iconic headquarters in the heart of Paris at 24 Rue Faubourg Saint-Honore. This was no ordinary reveal. Members of the press from throughout the Americas had to work for their dinner: donning aprons and first preparing dessert, a cake made with apples and pears, and then moving to a gardening spot, where we repotted some beautiful hybrid rose bushes into special Herms orange pots. It was not surprising then, when we learn that Un Jardin Sur Le Toit has notes of apple, pear, rose, green grass, basil, magnolia and a touch of humus. The scents of a private garden. Hermes Un Jardin Sur Le Toit is available in 50 and 100 ml Eau de Toilette.
Delphine Derome, Director of Collections Development, Arnaud Beauduin, Vice President Americas & Herms perfumer, Jean-Claude Ellena
Un Jardin en Mditerrane, Un Jardin sur le Nil, Un Jardin aprs la Mousson, Un Jardin Sur Le Toit A rose garden, Herms style.
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GODDESS, MAC has created an exclusive Viva Glam site, www.vivaglam.com, featuring All Things Gaga, which went live on March 17. This is when the latest Viva Glam lipstick and lipgloss was revealed, which now remains on sale for a full year. Every cent of each Viva Glam product sale is donated to the MAC AIDS Fund. A new travel retail exclusive fragrance from the Este Lauder brand, Adventurous, will also be oncounter worldwide in March. Adventurous is said to evoke a safari of the senses with notes that evoke the warmth of the earth and beat of African woods, and comes with an accompanying color palette. In skincare, Este Lauder uses its reputation for science and technologically advanced products to connect with its core consumer. In its latest example, Este Lauder has updated its DayWear franchise, with a new collection of products led by DayWear Advanced Multi-Protection Anti-Oxidant Moisturizers SPF 15, which the company says uses the brands most effective anti-oxidant and broad-spectrum sunscreen protection ever. And Clinique, in March, introduced a travel retail exclusive set for its break-through Repairwear Laser Focus Wrinkle & UV Damage Corrector. The set contains two30mlversionsofthe product and will be available for a limited time.
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Air-Val presents enchanting childrens perfumes and launches a new line of NBA scents for sports fans
Air- Val International will launch a range of new children and adult fragrances at IAADFS 2011 in Orlando that encompass some of the most popular Disney characters and, for boys, a full line of scents based on six of the most popular teams in the National Basketball Association. Based in Barcelona and with an office in Miami, Air-Val International was founded in 1979 and is one of the biggest Disney licensees in the perfumery category. Today, the company manufactures over 200 childrens perfumery references for Disney and Barbie in addition to fragrances for many other well-known brands and has a worldwide presence. Air-Vals target audience includes pre-schooler, children, tween, teenager and adult category. Today, Air Val has a portfolio of nearly 300 fragrances and personal care products for children and teenagers. Barbie: The new selections for 2011 start with Barbie. A truly global sensation for 50 years, Barbie is recognized and celebrated around the world. Air-Vals latest Barbie products include a Barbie jewelry set, containing three miniature EDT 10ML in Pink, Yellow and Blue scents and a kissing lipgloss. Mickey and Minnie Mouse Fragrance: Since his debut on November 18, 1928, in Steamboat Willie, Mickey Mouse has evolved into a character who reminds all ages of the benefits of laughter, optimism and hope. Air-Vals new fragrances for Mickey and Minnie Mouse come in an exclusive bottle and is presented in a fun metallic box. Air-Vals latest Disney Princess Fragrance is presented in a metallic round bag containing an enchanting fragrance EDT 50ML in an original bottle with a magical crown on the cap. Disney Fairies Fragrance: Air-Val International presents its new Fairies perfume, featuring Tinker Bell and her friends in the world of Pixie Hollow. The fruity-floral EDT comes in an adorable metallic box shaped like a spring flower, with petals that open and close to reveal the delicately crafted perfume bottle within. For boys, Air-Val has its Pixar Disney Cars collection. This years addition is a cologne that celebrates Lighting McQueen and his friends. Cars2 EDT 100ML Air Val International and the NBA: AirVal has developed entirely new products for this brand, which it says is key for the global youth market. The National Basketball Association has a dedicated, global fan base, with a strong tie to youth and popular culture. The NBA is a lifestyle brand that represents American culture, performance and style to millions of fans around the world. As for the scents, Air-Val says that the highest level of basketball in the world needed unique and intense fragrances, and that they created the line to share the same attributes as the game: Talent, Fun, Excellence, Trendsetter.. The line consists of two different fragrances and two gift sets. Each fragrance comes dressed in a sleeve that represents the most popular teams: Boston Celtics, Toronto Raptors, New York Knicks, Los Angeles Lakers and Chicago Bulls. The NBA line includes an NBA Eau de Toilette Blue 100 ml, with top Notes of Tea, Green Apple, Bitter Orange and Aquatic Spices, Middle Notes of Lavender, Cedar Wood and Tonka Bean, and Base Notes of Musk, Moss and Vetiver. The NBA Eau de Toilette Black 100 ml fragrance has Top Notes of Basil, Thyme, Orange and Rosemary, Middle Notes of Sage, Geranium and Coriander and Base Notes of Fir-Moss, Vetiver and Patchouli. Air-Val will be showing all these new selections in booth number 733.
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had been forsaken for some time. We also think that a diversification of our portfolio is appropriate for our future development, Picot tells Insider. Picot is also tremendously enthusiastic about the new make-up brand, Black/ Up, which PGE will be distributing from inventory in its usual warehouse, throughout the Caribbean, with the exception of the French Antilles. Black/Up is a high-end cosmetic brand manufactured in France and in Italy, specifically created for women of color, bringing quality, elegance and style. Presently, there are no brands that have this unique concept, says Picot. We are very excited to be the company that will bring to the Caribbean people of color, a cosmetic line of high quality, modern and elegant, fulfilling their specific needs. When we first approached the company four years ago, they werent ready to expand. But today, Black/Up can claim the number one spot in Make-Up in the French Antilles. In the two months since PGE announced that it would be carrying the brand, the reaction from Caribbean retailers has been super positive, reports Picot. We have a lot of interest. Lionel Durand, Managing Director of Black/Up recently launched the companys U.S. website during a presentation in New York. For more information, please contact PGE at jfpicot@pgeinc.com and go to www.blackupcosmetics.com .
PGE expands portfolio with Majorica pearls and French make-up brand Black/Up
Miami-based distribution and agency company Philippe Gerard Enterprises has added two major new brands to its portfolio, Majorica Pearls and Black/Up, a French make-up artist brand designed specifically for women of color. Venturing into the jewelry category for the first time, fragrance and cosmetics specialist PGE will be representing Majorica pearls in the Caribbean and Mexico Duty Free (with the exception of the Aldeasa stores in Cancun airport and the Mexican department stores of Cancun). We will be the distributor for Majorica, although we will not hold inventory, explains PGE President JeanFranois Picot. Orders from customers will be either cross docked in Miami or drop shipped from Spain. Majorica is a little out of our normal scope of business, but we were impressed by its renewed brand acknowledgment in the U.S. and its quality distribution in the U.S. department stores. We also have found a deep interest by retailers in the Caribbean to carry or carry again this brand, which
Rihannas mother, Monica, (l) presented her daughters signature fragrance, Rebl Fleur, in the launch at Cave Shepherd in downtown Barbados on March 6.
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will influence the future of educational and experiential marketing as well as consumer purchasing patterns, said Green. Beauty industry icon Annette Green, President Emeritus of The Fragrance Foundation, has joined up with Benjamin Cohen, Founder and President of BobCar Experiential Media, as BobCars first ever Beauty Brand Spokesperson. Green is bringing her 40-plus years of experience to this new, patented Retailing/ Marketing concept - the BobCar Mobile Beauty Boutique. Together, Green and Cohen are striving to develop a new world of retailing outreach, allowing beauty companies to provide hands-on product information, education, demonstration and sales literally on the streets of America. The BobCar is a zero-emission electric vehicle that can be customized for a brand or a retailer and used to reach out to, attract and involve consumers wherever they might be. As a mobile media showroom, the customized BobCar decked out with client colors, logos, videos and product has the potential to be a powerful marketing tool in an airport or other travel retail environment. Speaking with Travel Markets Insider, Green said the innovative BobCar caught her imagination and enthusiasm and she immediately saw its potential as a tool with which to connect with the consumer. To me, the future is about being where your consumer is going to be. The BobCar, eco-friendly, interactive, brightlycolored and eye-catching cars, can engage potential consumers and become a mobile demonstration showroom or even a sales boutique. The idea is sensational and so appropriate for the beauty industry. Green points out that consumers love touching, feeling and trying-out the latest in cosmetics, fragrance or personal care products, and the BobCar, could be used for sampling, make-overs, launches, animations. The potential list is endless. I believe this break-through innovation Benjamin Cohen, who created the BobCar originally to drive foot traffic into retail stores, is in complete agreement with Green. Annettes expertise and years of success in the Fragrance and Beauty Industry will facilitate BobCars growth, as we alert this industry to a powerful marketing tool, never before available in the consumer marketplace. With BobCar Mobile Beauty Boutique well have the zero-emission electric vehicles in highly-trafficked areas where people can speak with trained Brand Ambassadors, try the latest colors, smell new fragrances and experiment with beauty care products. Its a new and easy way to involve consumers whenever they leave their homes, office, entertainment centers or just make the street scene. Customers are stimulated to visit stores to purchase the products they have just discovered and experienced in the entertaining BobCar environment, said Cohen.
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BobCar Medias mobile campaigns drive traffic and sales, generating impulse buying in high traffic city locations nationally. For more information about BobCar, visit: www.bobcarmedia.com About Annette Green Ms. Green is a world-recognized industry futurist and leader. Her pioneering work has been a pivotal force in creating the modern-day Fragrance Industry. In her over 40 years leading The Fragrance Foundation, as Executive Director and President, Ms. Green developed a series of critically-acclaimed exhibitions which were mounted in museums across the U.S., developed industry conferences here and abroad, established the Sense of Smell Institute in the early 80s, working with hospitals and universities around the world. It was the first time an industry had committed itself to spearheading the study of our senses, emphasizing the psychological impact of fragrance on behavior. Ms. Green also acted as an educator and spokesperson for the industry and helped establish Bachelor and Master degree programs in Beauty Marketing at the Fashion Institute of Technology (FIT). Ms. Green founded The Fragrance Foundations Annual FiFi Awards, the Oscars of the Fragrance Industry, which has expanded to France, Germany, Italy, United Kingdom and most recently in Dubai and Moscow. Ms. Green developed and opened the countrys first fragrance museum, The Annette Green Museum at The Fragrance Foundation, which was named in her honor by the Foundations Board of Directors. She has received numerous awards and honors including the prestigious Medal of the City of Paris and a Certificate of Appreciation from the Mayor of New York for her contribution to the well-being of the fashion and beauty industries in our City.
Cohen told Insider that the first customers who used the BobCar came from the consumer electronics sector, and that results were amazing: Using the BobCars increased sales figures up to 200% in past campaigns. Thats real selling power, and we are fully synergistic with the local stores efforts. A definite Win-Win for all concerned. About BobCar Media, LLC Created by Benjamin Cohen to drive foot traffic into retail stores, BobCar Media, LLC is a marketing company that utilizes their patented eco-friendly interactive mobile demonstration show rooms and sales boutiques to feature client products. The brightly-colored, eye-catching cars attract customers with their sleek design. Educated Brand Ambassadors are present to answer customers questions and help them understand which product best suits their needs.
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Collections 2000 brings big bags, smart watches and Italian style
Collections 2000 Inc. will be showing an exciting range of new and returning brands at the IAADFS Duty Free Show, on exhibit at Booth #437. Debuting in Orlando from Collections 2000 are the fun, casual bags from Big Buddha, whose designer Jeremy Bassan was discovered by shoe mogul Steve Madden. The Big Buddha bags sport soft materials, pop hardware and great colors; and feature all the function you are looking for, such as plenty of pockets, adjustable shoulder straps and top zippers, says Collections 2000 founder Kathy Levine. Bassan designs handbags for the modern woman who may juggle a career, school and family. Big Buddha bags are animal friendly, stylish, fun and wont break the bank. The young designer at the core of Big Buddha, 27-year-old Jeremy Bassan, is a dual American French citizen, world traveler and entrepreneur who runs his company from his new office at the Steve Madden Showroom in New York City, says Levine, and is continuing to grow in a competitive industry. Big Buddha is available in Macys, Dillards, Lord & Taylor and in boutiques throughout the country. Another newcomer to duty free is Invicta watches, says Levine. With over twenty collections, Invicta is fully equipped to suit the most particular and diverse tastes, says Seth Levine, Collections 2000 co-founder. Invicta is known for achieving creative and technical revelations from every point of view and offering engineering and design.
Among the Invicta watches are Subagua, Reserve, Russian Dive and Lupah to name only a few. This is one of the most collectible watches. Collections 2000 will also be featuring watches from Toy and Philip Stein. Italian leather goods company, Alviero Martini, producers of the map-inspired 1A Classe accessories, is returning to the Duty Free show after an absence of several years. Alviero Martini 1A Classe is one of Italys leading brands of luxury goods, and an important representative of Italian Style around the world. Inspired by the era of legendary voyages, explorations and the Belle Epoque, today Alviero Martini 1A Classe has a strong, clear identity: the fabulous map designed by Alviero Martini in the mid 80s. This year, the company will be introducing a new white look as well, reports Kathy Levine.
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by its new team of owners who, led by Barbanel, acquired the company late in 2009. The Be Fine concept was born from the food side of the industry, created by Florence Sender, who came from a food background as a chef, Barbanel explains. Sender put together a whole regimen of products derived from food products. Her theory was that if you ingest it, you eat it, it has to be good for you. If we eat it from the inside we can absorb it from the outside. Although Sender is no longer involved with the company, her concept remains valid. The new owners who have an extensive background in the U.S. fragrance and skincare distribution business first repositioned the Be Fine brand as a specialty shop line rather than the drug mass where it had first been launched. In the U.S. Ulta Beauty is our flagship retailer and they are doing fantastic business with us, says Barbanel. In domestic markets we are partnering with distributors who can put us into the masstige distribution channel, like the perfumeries and the pharmacies that exist throughout France and the EU, adds Beauty2Markets Tillman. We are really priced in the middle and we offer the same formula that some of
the top prestige creams offer, says Barbanel. Because Be Fine skincare is food derived, it was natural to design the product portfolio as a menu, says Barbanel: We have the refreshing starter course, which are the Be Clean products, the cleansers, the toner and the scrub. Then we have the Nourishing Main course, which consists of our moisturizers, night cream, neck cream, and eye treatments. And then we have the final course, the Indulgence Course, which includes the specialty items, masks, lip products, and our best selling Rough Spot Lemon. Following the food theme, our website even incorporates recipes using the ingredients that make up the Be Fine products. These recipes drive home the concept that the same food that you put into your body is what you can put on your skin, says Barbanel. The line is reasonably priced, simple to use and easy to understand, and finding success both in domestic and international markets. Several new products are planned for the first quarter of this year, including three new facial masks in avocado, cucumber and mint, a natural bronzer and a natural skin brightener. Be Fine is exhibiting at the IAADFS Duty Free Show of the Americas at Booth # 2208.
Parlux to launch fragrance brand for shoe designer Vince Camuto in Cannes
South Florida fragrance company Parlux will be launching a new fragrance brand for designer Vince Camuto. The uber-shoe designer, a cofounder of U.S. brand Nine West who now leads a team that reportedly produces 22 million pairs of shoes a year globally, also acquired the Jessica Simpson master license in 2005, turning it into one of the most successful brands in the young contemporary market.
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Vince Camuto also launched his own line and it is doing very well, says Parlux Vice President of International Sales Les Romer. She confirms that the Vince Camuto fragrance will be unveiled at a reception in Cannes in October, and that Camuto will be making a personal appearance at the launch. Parlux will be launching the fourth generation Jessica Simpson fragrance in the fall as well, she says.
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Aspirations:
American Fragrances
162 Port Richmond Avenue Staten Island, NY 10302 (718) 816-1112 Booth# 2208 ram@nyfusa.com
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The concept evokes thoughts of freedom, aspiration, opportunities and a carefree life style for which America stands for, he says. The American Dream range was showcased two years ago at the Duty Free Show to very enthusiastic response, says Cherukuri, The company will also be showing some new sets. Both the ladies and mens line are available in 30, 50 and 100ml sizes and accessibly priced in the U.S. market at $25, $30 and $40 respectively. Cherukuri says that he is currently looking for business partners to market and distribute the products. For more information, visit American Fragrances at Booth #2208.
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Two bottles of The Macallan Lalique 55 Years Old in a Limited Edition Lalique Decanter, specially created and handcrafted by 25 of Frances finest craftsmen were available at the event. There are only 420 decanters in the world and each piece is individually numbered. The Macallan Fine & Rare Linley Cabinet, an ultimate collaboration with the renowned British furniture design company. The exquisitely crafted Linley cabinet becomes a distinctive showcase for the Macallans remarkable single malt Scotch whisky collection from six decades: 1937, 1949, 1952, 1960, 1976 and 1989. The collection is created exclusively for the Master of Spirits event. The Balvenie Forty, a careful selection of rare whiskies obtained from seven handselected casks. Each of the selected whisky has been maturing for over 40 years. Created by Balvenie Malt Master David Stewart, each bottle is hand-numbered and presented in a bespoke wooden box, with only 150 hand-numbered bottles available worldwide. Only 2 bottles were available at the event. The Louis XIII Rare Cask 43.8, a supremely rare cognac from the House of Remy Martin handpicked by cellar master Pierrette Trichet for its unique strength, richness and intensity in 2004.
One bottle was brought in for this event. The Louis XIII Black Pearl Magnum, a cognac of royalty, rarity, sublime taste and dramatic presentation. Each bottle is a blend of 1,200 cognacs, ranging from 40 to 100-years-old, across three generations of cellar masters. There was one bottle showcased at the event. The Hennessy X.O. Mathusalem Berluti Chest is a limited edition bottle that is housed in its bespoke leather bound wooden chest made by renowned French shoemaker Berluti. Only one bottle was made available at the event. The Dom Perignon White Gold Wedding Jeroboam 1995, the most expensive champagne jeroboam available today. Officially launched in 2008, the three-liter bottle combines the exquisite craftsmanship of the finest jewelers and wine creators. Each exclusive piece is limited and numbered, two of which were featured at the event. The Penfolds Bin 7 Coonawarra 1967, a rare and collectable blend of Coonawarra Cabernet Sauvignon with Barossa Shiraz sourced from Penfolds most treasured old blocks. Only 500 cases of Bin 7 were ever made and its estimated less than 20 cases remain in existence. Only 1 bottle was available at the event.
to many consumers is the fact that the MLP bottles are green and 100% recyclable. Barry Geoghegan, President of Barry Global Innovation said, I am looking forward to working with Haleybrooke International and introducing our MLP range of wines in the Americas. We have already received listings in Europe and The Middle East with Aer Rianta, Aelia and Dufry and I am sure that we will have similar successes in the Americas. The wines in MLP bottles exclusive to travel retail include the following: Paul Sapin Vin du Pays dOc, Bourdeaux Rouge, Chablis, Fleurie (France), Casa Santa Maria (Chile), The Rocks (Australia), Giuliana (Italy), Whistling Thorn (South Africa), Ta Moko (New Zealand) and many others Geoghegan will be on hand at the Haleybrooke International booth #207.
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Sobieski Vodka and Danzka Vodka lead the way for Belvdre Duty Free and Imperial Brands in the Americas
With the unprecedented success of Sobieski Vodka in the U.S. and a growing stable of new markets for Danzka Vodka, the business in the Americas for Belvdre Duty Free and sister company Imperial Brands continues to reach new levels. 2010 was an excellent year for our duty free flagship Danzka Vodka and Sobieski Vodka, the most popular premium vodka in Poland, says Torben Vedel Andersen, Director Global Duty Free for Belvdre Duty Free. We had a very good beginning of 2011 so everything looks fantastic. Our brands are growing throughout the Americas region and throughout the world. Sobieski Vodka continues to be one of the fastest growing brands in the U.S., and now it is gaining momentum throughout the rest of the region. Sobieski Vodka grew more than 40% again in 2010 in the U.S. We shipped about 800,000 9-liter cases, says Paul Massey, Imperial Brands Vice President of National Accounts. The goal for 2011 is one million cases. I think we have a really good shot of getting there, making us the fastest vodka in the U.S. to ever reach that milestone! According to Massey, Sobieski Vodkas success in the U.S. domestic market is now spreading to travel retail. You have to have the visibility in the local market to drive those sales in the duty free market and we have the visibility in the U.S., says Massey. We are excited because Dufry Puerto Rico just started carrying Sobieski on March 1. We continue to do well with Sobieski with SMT in Puerto Rico, and it is doing very well at the Orlando Airport. Massey says the Sobieski two-pack has done very well along the southern U.S. border with Fairn and Swanson. Imperial Brands launched Sobieski Vodka in Latin America in 2010, and Sobieski was featured in the Central Hall the brand is already taking off of London Supplys Iguazu store with operators along the Brazilian border such as London Supply in Argentina, Shopping China in Paraguay, and Sieriz to great success, says Gonzalez. Our Duty Free Shop, in Rivera, Uruguay, says Brazilian sales are fantastic. The domestic Tito Gonzalez, Imperial Brands Regional success in Brazil has helped the brand in Director, Latin America and Caribbean. the rest of the region. We started in the domestic market in Danzkas success is not limited to the Brazil two years ago and now it is paying Americas, as the brand expands throughout off for the rest of Latin America. We also Asia, says Andersen. have Sobieski in Central America with Danzka Vodka is dramatically Grupo Wisa, says Gonzalez. growing in Asia and the Pacific Rim. We Sobieski is also growing in the had our first order from New Zealand and domestic markets in the region. The hope to be in Japan this year, he says. brand is in Peru, Chile, Argentina, Brazil, In Cancun Airport with Aldeasa, Panama, El Salvador, and Mexico and Belvdre has combined its two main the company plans to launch in the rest of vodkas into a dual display featuring Central America in 2011. Danzka Vodka on one side and Sobieski Sobieski Vodka is also well Vodka on the other, that Andersen says represented in key Caribbean islands looks great and has increased sales for both including in Curaao, the Virgin Islands, St. brands. Martin, and the Cayman Islands. The new displays are boosting the For Danzka Vodka, which introduced sales quite nicely, he says. a slimmer, sleeker new bottle last year, Imperial Brands 4 Orange Vodka, Imperial Brands is taking advantage of the which was introduced at the IAADFS buildup to the 2014 World Cup and the Picnic last year, is attracting attention as 2016 Olympic Games in Brazil to further a destination product. 4 Orange has been build the business. listed at SMT in Puerto Rico, DFA in Brazils border Miami, and Aldeasa in Orlando. business is thriving. The 4 Orange makes a great gift for economy is growing, people traveling in and out of the islands which has led to more as well as in and out of Florida. It is not border crossing and travel a flavored vodka, and is unique since it retail business. This is why is actually made from four varieties of Shopping China, Mannah, oranges that only come from Florida, says and London Supply are Massey. booming, says Gonzalez. Belvdre Duty Free and Imperial Danzka Vodka was Brands will showcase their full range of launched in the Brazil local vodkas at the IAADFS Duty Free Show market last year through the of the Americas in Orlando along with the Belvdre Brazil Subsidiary Marie Brizard liqueurs, on stand 736.
The dual Sobieski/Danzka display in the Aldeasa store in Cancun airport IAADFS/MHA Issue March/April 2011 98
IAADFS 2011: Visit Imp ADFS : Imperial Brands Inc. & Belvdre Duty Free at our Booth #736 perial B Free o Bo
DANZK DANZKA vodka, SOBIESKI vodka, MARIE BRIZARD liqueurs, Gautier Cognac and 4Orange vodka KA SOB BIESKI vod a are registered trademarks owned by BELVDRE S.A. 2011 BELVDRE S.A. ELVDR RE registered trad
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Brown-Forman Travel Retail is launching a new bottle, dubbed melting ice, for Finlandia Vodka in Orlando. Known for its pristine vodka and innovative package design, Finlandia Vodka is made from the purest water in the world -- born from the glacial ice that covered Finland 10,000 years ago, says the company.
Creek, and Sanctuary. A facility in Paso Robles, CA is also included in the sale. The sale does not include the SonomaCutrer brand or the companys long-term agency relationship with Korbel California Champagnes. The sale is expected to close in April 2011, subject to regulatory approval. Brown-Forman acquired Fetzer in 1992 from the Fetzer family. At the time of acquisition, the Fetzer company was selling nearly two million cases annually. Under the Brown-Forman stewardship, Fetzers depletions grew to more than three million cases in 2010. The fiscal 2010 net sales contribution the recession we saw our Jack Daniels sales grow very nicely. The store has given us and our partner, Nuance, the opportunity to engage with consumers at a much deeper level. I believe that traffic has picked up at that terminal over the last several months. Additionally, the use of STEB bags has helped convince European bound passengers to purchase, says Perry. We launched a pop up store concept in Sydney, Australia, that we intend to begin introducing into the U.S. and Canada. Away from the airports we created a unique
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from these assets was $156 million, including excise taxes. Vina Concha y Toro S.A. is Latin Americas leading wine producer and currently exports to 135 countries worldwide. Uniquely, it owns around 9,500 hectares of prime vineyards, which allows the company to secure the highest quality grapes for its wine production. Concha y Toros portfolio includes a wide range of successful brands at every price point, from the top of the range Don Melchor and Alma-viva to the flagship brand Casillero del Diablo and innovative stand-alone brands such as Palo Alto and Maycas del Limar. Finlandia vodka sampling program with Carnival Cruise Lines. As Perry looks at what lies ahead for Brown-Forman Travel Retail in the coming months, he pinpoints the return of travelers as the catalyst for his companys continued growth. It may sound simple, but the rapid recovery and huge growth in international airline passengers is the major story. With over 1 billion travelers, the majority above legal drinking age, the global airport travel retail market is an enormous and growing opportunity.
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Diageo GTME Trinity partnerships transform the travel retail environment in the Americas
Fly through Miami Airport, JFK or LAX. Swim in Half Moon Cay in the Bahamas. Take a trip to Dallas. Visit any of these places and it will be hard to miss a Diageo brand. Over the past year Diageo GTME has prioritized its Americas business and the results are right in front of travelers, touching all of their senses. In these locations, through these activations, travel retail in the Americas has caught up to the rest of the world. Diageo GTMEs new regional director for the Americas Gregorio Gutierrez has vowed to put the Americas back on the map. The Americas represent 19% of the total GTME business and growing, says Gutierrez. We are investing more in our team, in our talent. We have invested a lot of time not only in bringing new resources, but also creating a breakthrough culture, working on our leadership skills, which is paying off big time. Gutierrez is particularly proud of his team, which in the past six months has grown by seven people to thirty-four, representing fifteen different nationalities. Diageos ambitious goal in travel retail is to double the size of the liquor category. Our vision for growth for the overall channel is doubling the category, increasing footfall, and retail transformation and innovation through partnerships, he says. Diageos brand activations and retail transformations are spreading throughout the Americas. Retail transformation is a huge part of what we think will compel people to walk into a store. Its about experience. In the Americas GTME has already experienced retail transformation this year in fourteen outlets. Its our goal to impact the top twenty before years end, says Eric Breiding, Cruise Customer Director at Diageo GTME. Retail transformation can enhance the store if you have stores that are low in the evolutionary path of a retail
Diageo partnered with DFS to transform the liquor category within the DFS store located before securuty at Tom Bradley International Terminal at LAX
outlet. Enhancing can make it smarter, correct adjacencies and the brand mix. Transformation can also be as audacious as LAX. Tom Bradley International Terminal at LAX In the beginning of 2011 Diageo partnered with DFS to transform the liquor category within the DFS store located before security at Tom Bradley International Terminal (TBIT) at LAX. The strategy behind the project is to connect with the terminals changing passenger mix and to redesign key categories within the stores original footprint of 12,000 sq ft. LA is a prime example of both retail transformation and partnering with DFS. We used DFS passenger store data to really understand and pinpoint who are the
passengers going through this airport and this terminal and what they prefer to buy. The liquor section is right in the flow of the store and is the exact category that this passenger prefers. It is all about Scotch in this store and that is what we are taking advantage of, says Breiding. In DFS TBIT store ultra premium Scotch such as Johnnie Walker Blue and The John Walker sit alongside high-end cognacs and other rare spirits. TBIT has seen a sustained change in its passenger mix, with more new international flights bringing a significant influx of North Asian passengers plus strong growth from Australia and New Zealand, as LAX is the principal gateway to and from the Asia Pacific region. DFS and Diageo combined their knowledge of these new travelers and potential shoppers to devise a sophisticated
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on an immensely creative Tanqueray brand-building activation at JFK T4, Toronto International Airport and Cancun International Airport that ran from April through June 2010. The centerpiece of the campaign was an Exploratorium; a 4m x 4m square, interactive, free-standing experience mirroring the shape of the Tanqueray bottle. The Exploratorium took consumers through a sensory, educational experience using sight, smell and taste. Each corner featured a various aspect of the spirit, and included an Aroma Wall featuring scents of the botanical ingredients; the Charles Wall conveys a brief history; the Cocktail Wall featured a list of signature cocktails recipes; and the Bottle Heritage Wall further expanded on the heritage of Tanqueray. At JFK T4 Diageo took its trinity one step further, to what Gutierrez called quadrinity. Diageo GTME and DFS worked with restaurateurs SSP America and the airport authority to offer live product sampling on the concourse, a first for JFK Terminal 4. The drinks that were offered were also sold in the bars throughout the concourse. Zacapa in Miami One of Diageos most visually stunning brand showcases took place at Miami International Airport in October with its Ron Zacapa Tasting Bar. The tasting bar, located in a rotunda between gates D25 and D41, in American Airlines and American Eagles Latin American and Caribbean hub, was themed upon the legendary aging process of Zacapa Rum above the clouds. After distillation, the rum is transported 2300m above sea level, the highest aging facility in the world. To take the shopper on this
and contemporary approach to category management in these core categories. The changing passenger mix is a positive opportunity to do something radical with our store space. We asked Diageo to help us leverage the latent power in the leading brands across key categories. As such they looked beyond their own portfolio and indeed beyond liquor to help us create a holistic approach that provides subtleties of flow and navigation, making the shopping experience both easy and a pleasure, says John Hoover, Global Vice President- Merchandise Manager Spirits, Wine and Tobacco at DFS. LA is the latest example of a total retail transformation where we have been major partners in the design and implementation. Underneath it all you have our trinity model, sometimes even quadrinity, of partnering with airports, with retail, with different stakeholders in our value chain, to create amazing activations, says Gutierrez. Tanqueray Exploratorium: JFK, Toronto, Cancun Before Diageo partnered with DFS in LAX, they worked with several operators
journey above the clouds the bar used a blend of design and state of the art technology including a projection canopy atop the black and gold-colored circular bar, reminiscent of a hot air balloon. The bar was surrounded by four columns wrapped with Zacapa 23 bottle images on a backdrop of clouds. To further enhance the brand messaging, a series of ceiling-height columns were wrapped with graphics throughout the terminal. The activation was the first-ever major theatrical brand activation on this scale in North America for Zacapa Rum and is the first in a series of projects Diageo plans for Miami as part of an enhanced focus in the region. The core aim is to raise awareness and sales through exceptional visibility and engagement with target shoppers. An additional focus was sampling activations for the multiple awardwinning Zacapa 23. The activity was also complemented by a value offer of 2 bottles of Zacapa 23 for $80 in the DFA store. As the vibrant and radically enhanced gateway to Latin America, Miami International is the perfect location to host this unique creation. This activation emphasizes Zacapas appeal and we are committed to significantly strengthening its international and premium development in the region this year, said Emmanuel Herrera, Commercial Manager for Diageo NorthLac. Gutierrez calls the above the clouds activation another example of Diageo GTMEs commitment to its brands in the Americas. You see what we did with Zacapa here in Miami. This was the first time that anybody did a program like that in the Miami Airport. It is really breaking through in how we do our business, how our brands show up everywhere, says Gutierrez.
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Don Julio in Dallas Diageo partnered with DFASS and Reata in Dallas/ Fort Worth International Airports first Travel Retail trinity to create a high-energy consumer interaction for Tequila Don Julio on concourse, in duty free stores and in restaurants and bars in Terminal D, which serves both domestic destinations and all international flights. The promotion kicked off on February 1, 2011, in time to connect with the Super Bowl on February 6, when the city of Dallas was expecting an influx of 250,000 visitors. The activation centered around Tequila Don Julios recently revealed Luxury Drop, which brings together the concepts of shots and high-end mixology in a unique hybrid, creating a premium specialty cocktail in a smaller portion. On February 1, Tequila Don Julios master distiller Enrique De Colsa and the Global Brand Ambassador Brian Van Flandern, demonstrated the first luxury drops on the DFW Terminal concourse, educating consumers about the heritage and authenticity of Tequila Don Julio. Mixologists and Brand Ambassadors will follow their lead throughout the activation, which runs through to the end of March. Van Flandern has led extensive training for brand ambassadors, in-store and restaurant staff to ensure consumers receive an engaging, informative and seamless brand experience. After experiencing the concourse demonstration, consumers are then invited to the nearby Buckaroo duty free stores, run by DFASS, where there is further instore theater and sampling of Luxury Drops and Tequila Don Julio neat. Consumers are also directed towards nearby restaurants and bars in the terminal to enjoy a Tequila Don Julio Margarita or Luxury Drop. Menus and table tents in the bars and restaurants provide further visibility for the Tequila Don Julio variants. The Don Julio concourse initiative, timed to coincide with the Super Bowl activities, is creating a buzz throughout the airport. I believe this will set the benchmark for future breakthrough projects in Dallas/Fort Worth International Airport and other key venues where Diageo and DFASS can exploit our strategic partnership, says Jon Potash, Executive Vice President Airport Retail Management & Development DFASS.
Captain Morgans On the Rocks at Half Moon Cay in the Bahamas
Dallas/Fort Worth International Airport is the worlds 3rd busiest airport and one out of every ten connecting passengers in the U.S. passes through it. In 2010 the airport handled 55.6m passengers. On the Rocks in the Bahamas Diageo has partnered with Holland America Line and Carnival Cruise Lines to create an extraordinary new bar experience for passengers sailing to Half Moon Cay in the Bahamas. They created Captain Morgan on the Rocks, a new bar featured inside an immense 101-foot long twin decked, threemasted schooner on the Holland America owned 2,400 acre private island, which officially opened on Jan. 29. The bars offerings are focused on Captain Morgan Original Spiced Rum and the Captain Morgan range as well as a wide selection of premium drinks from across the Diageo portfolio. Captain Morgan on the Rocks expresses our intent of building amazing relationships with the worlds leading cruise companies and creating fantastic consumer experiences to provide on-trade entertainment that gives guests of Holland America Line and Carnival a truly original, engaging and memorable experience, says Breiding. The shipwrecked bar/ship-inspired by the history of the real-life privateer Captain Henry Morgan when he sailed the waters over 350 years agois full of engaging nautical and historic references, including rum casks for seats, cannon barrels for bar stools and palm leaf-styled ceiling fans.
With a total capacity of 326, the bar features a range of branding concepts, including Captain Morgan logos, messaging and images that are burnt into the wood. The fun, light- hearted spirit of the Captain Morgan brand is a perfect tie-in to the vibrant and relaxing beach experience of Half Moon Cay. The bar is a wonderful enhancement to the guest experience, says Paul Goodwin, Executive Vice President, Onboard Revenue, Planning, Port Operations and Tours for Holland America Line. Captain Morgan on the Rocks is another fantastic example of a breakthrough in the way we are portraying our brands in a channel that is different from the traditional airport shops where we are also creating innovative new experiences, concludes Breiding. Diageo has more plans in the pipeline in the Americas. The amazing Tanqueray trinity activation at JFK has spawned a number of different trinity activations throughout the region. This past holiday we activated a trinity partnership with Panama Airport with Johnnie Walker Blue Label and the Greg Norman promotion. We did the same with Blue Label in the Dominican Republic Airport, a trinity approach, says Heather Volman, Diageo GTME. There are a number of different areas where we are looking at trinity in the Americas. It has definitely been something that has been a major focus for us in 2011 and will be in 2012 and beyond.
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William Grant intensifies focus on the Americas with expanded team and aggressive brand activities
brands will be highly visible in Americas travel retail in 2011. The Global Travel Retail Channel is seen as a vital showcase for developing our global brands. Its importance can be gauged from our approach to Glenfiddich and our mission to rejuvenate the brand this year. That project is entitled The Seven Pillars of Glenfiddich and suffice it to say that Global Travel Retail is one of those Pillars. This year, in particular, we are keen to gear up our activity in the Americas and thus this years Duty Free Show of the Americas is key for William Grant & Sons. We look forward to meeting our customers there, he says. We would like to be seen as a highly active brand in the Channel and be considered as the leader in innovation and added value within the liquor category, generating in store theater and high profile promotions designed to create exciting brand experiences for the consumer. We see real opportunities to grow our brands in the Americas. Taylor says the hiring of Boggio will help seize on the opportunities for WGS on cruise ships. We are going to invest quite heavily across the channel. Pablo Boggio is going specifically into the Caribbean to activate on-trade on the Caribbean cruise lines. Pablo has been brought in to create on-trade experiences in bar supported by in-store activity, which I think is absolutely what we need to do, he says. If you are talking about appealing to American customers in U.S. Duty Free, surely the Caribbean cruiselines are the most obvious example of U.S. consumers traveling on holiday within the duty free environment. There is huge potential out there. While Taylor sees potential in the Americas, he also says there are some obstacles that WGS and all suppliers have to overcome to be successful in the region. The biggest challenge in the
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Stephen Corrigan, Director Travel Retail North America William Grant & Sons
With the expansion of its Americas team, highlighted by the appointment of highly recognized spirits executive Stephen Corrigan as Director Travel Retail North America, along with a series of high-profile activities for its award-winning brands throughout the region, William Grant & Sons has a renewed commitment to expanding its business in the Americas. The company recently announced the appointment of Corrigan, and Pablo Boggio as Brand Activation Manager for the Caribbean Cruise Lines, and will shortly confirm the appointment of a new Trade Marketing Manager for the region. Ian Taylor, WGS Global Trade Marketing Manager, says the new hires signal a particular focus on the Americas in 2011. WGS continues to invest in GTR globally, but with a specific focus on the Americas. We have significantly strengthened our travel retail team in this region, Taylor tells Insider. With this significant increase in team size, WGS is well placed to exploit the many opportunities we see in this region, particularly in key airports across the Americas and the Caribbean cruiseline business. Taylor sees the global travel retail business as integral to WGS and says the
IAADFS/MHA Issue March/April 2011
Americas is to increase the amount of dedicated brand space for key brands in store; increasing visibility. In comparison to Europe, the Middle East and Asia, I would say stores in the Americas are still in some cases less open to brands being able to create the premium image they require through high profile promotions, in store theater and brand activation. If brands were given more space, they could carry out more sampling, more events and generate more excitement thus building brand awareness, conversion and sales. Elaborating on more of the challenges of the travel retail business in the United States during an interview late last year, Taylor said: U.S. Duty Free is a bit of a conundrum for us. We are having a fantastic year in Europe, we are seeing a huge amount of activities. We are seeing a positive response to brands, we are seeing the Middle East pop forward. The Far East business is very much back on track. The States has definitely been slower for us. Historically U.S. Duty Free still has a Duty
This year WGS will be launching Glenfiddich Age of Discovery, a 19 Year Old global travel retail exclusive
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Free mentality rather than a Travel Retail mentality. Some operators are very quick to go to price offers, or two for ones, rather than an added value. For us we have made a conscious decision to invest in U.S. Duty Free. It is definitely something that we are looking to do, he told Insider. The experience is absolutely core to everything we do. Our mission statement is to create passionate and engaging brand experiences for the international traveler to share in the home market. It is about positivity. Its about interaction, and a little bit of learning. If we dont ask the questions to the consumer, how do we know where to go? With a couple of reasonable questions, you can guide them towards a product that hopefully has more relevance. If you can do that, and then sample it, that is fantastic. Travel retail is a great place. It is a showcase for brands around the world. I think previously we might have missed the link back to the home marketplace. You dont have to purchase the brand there and then to have a positive experience with it. It may well be that two or three months later you are back at home and you are going to buy a gift for someone and you remember. With Corrigan now onboard the WGS team from New York Taylor thinks there will be more of a link between the travel retail and domestic divisions. Travel retail and domestic are totally separate business divisions. However, Stephen Corrigan is based out of the William Grant & Sons Inc. office in New York and therefore there will naturally be
WGS will be introducing new packaging for the Glenfiddich 21 Year Old
a much closer connection. The U.S. duty free brand plans are currently written with close consideration to the U.S. domestic plans and we try, where possible, to link our activity to the domestic plans. This will continue and, indeed, increase. Taylor says the biggest advantage for WGS in the Americas is its outstanding portfolio of premium and super premium brands and products and our passionate and professional staff. GLENFIDDICH. This year sees a massive investment in a new look and feel for Glenfiddich, exclusive to travel retail. This is the largest investment in cutting edge merchandising across the channel that Glenfiddich has ever undertaken. It features three Glenfiddich Crystal Stag Gondolas placed in travel retail at London Heathrow T5, Frankfurt Terminal 1B Schengen and Dubai T3. Next it rolls out across key airports and venues, including Los Angeles, Vancouver and Toronto, while the new golden imagery becomes the flagship for Glenfiddich in all travel retail advertising and promotional activities. This new look and feel in travel retail supports the new global advertising campaign, One Day You Will, Glenfiddichs largest global marketing campaign in its 124 year history. This year WGS will also be launching Glenfiddich Age of Discovery, a 19 Year Old global travel retail exclusive aimed both at gifters and whisky connoisseurs. In Orlando WGS will also be introducing new premium packaging for Glenfiddich 21 Year Old, moving it into the rare range alongside 30, 40 and 50 Year Old. This packaging will be exclusively in travel retail for at least 6 months. HENDRICKS GIN. WGS super premium gin continues to build distribution in travel retail and is focusing on creating greater image in the Americas in 2011. The past year has seen a number of high profile promotions in the region, including branded till points with International Shoppes at JFK. We have a number of stand-out, show-stopping promotions planned for 2011, using themes such as our Grandfather Clock, Penny Farthing, and Ice Cream Cart, supported by new retail furniture, sampling and added value promotions to drive sales, says Taylor. Our U.S. domestic team is creating a Hendricks bar with HMS Host at Newark this year, which will be a real focus at the airport and will help to increase brand awareness.
Batch three of The Balvenie Forty, limited to just 150 bottles, will be made available this year.
THE BALVENIE WGS handcrafted Single Malt Scotch Whisky this year launches batch three of The Balvenie Forty. The first batch of just 150 bottles, was launched at TFWA Asia Pacific last year exclusively to travel retail; batch two is available in domestic markets across the globe and due to the incredible demand a third batch, again of only 150 bottles, will be made available this year. The Balvenie offers a truly unique range in travel retail with two global travel retail exclusives in GoldenCask 14 Year Old and The Balvenie Forty, while the limited edition 17 Year Old Peated Cask and The Balvenie PortWood 21 Year Old are bottled at a higher alcoholic strength and are not chill filtered as they are in domestic markets, appealing to gifters and collectors alike. GRANTS. For Grants Blended Scotch Whisky, the focus continues to be on premiumization with the ongoing roll out of the global travel retail exclusive 25 Year Old and the premium 12 Year Old. This is supported by the global travel retail exclusive Distillery Edition. To support the complete range of Grants whiskies, William Grant & Sons is installing a new range of wall bays at key airports across the globe and creating theater in store with a series of high profile sampling activities. SAILOR JERRY With sales well in excess of 500,000 cases now in U.S. domestic markets, the potential for Sailor Jerry rum in global travel retail, and particularly the Americas, is considered significant. In 2011 we are looking to
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build new distribution across the channel with a particular focus on U.S. airports and the Caribbean, says Corrigan. We have now classified Sailor Jerry as one of our core brands, and focus will be put behind it to drive listings in 2011. TULLAMORE DEW The purchase of Tullamore Dew last year was the largest acquisition ever made by William Grant & Sons and gains entry into one of the fastest growing and dynamic categories in spirits, Irish Whiskey. Tullamore Dew is currently the worlds second largest Irish Whiskey and has already become a core brand. STOLICHNAYA. Since 2009 William Grant & Sons has handled the distribution for Stolichnaya in U.S. Duty Free, USVI and Puerto Rico. Sales have grown steadily over the past year and the activation of the brand will continue apace in 2011. Our plans center around premiumizing the brand through increased listings of the super premium Elit and widening the distribution of the flavors, says Corrigan. In Orlando we will also be displaying the first global travel retail exclusive bottle available for many years in U.S. Duty Free. The new travel retail exclusive has incredible impact with a really beautiful label designed by the leading New York artist Yuri Gorbachev. It seems extremely fitting that the exclusive has been designed by a Russian with incredible taste and flair who has made his home in America. Stand contacts in Orlando are: Stephen Corrigan Director North America; Jeff Orson, Regional Manager Canada; Jose Castellvi, Regional Manager Latam/ Caribbean/US Southern Border; Erik Thomsen, Region Manager Europe; Pablo Boggio, Brand Activation Manager, Caribbean Cruise lines; Ian Taylor, Global Marketing Manager; Emma Humphreys, Marketing Assistant.
Impact magazine calls 2010 a comeback year for worlds biggest premium spirit brands
2010 was a comeback year for the worlds biggest spirits brands and leading marketers, according to the February issue of Impact magazine, which featured an updated list of the Worlds Top 100 Spirits Brands. Eight of the worlds top 10 premium spirits brands experienced growth in 2010, and five surpassed their volume totals from 2008. Out of the top ten brands only Jose Cuervo and Captain Morgan did not pass their 2009 numbers. Impact reported that Pernod Ricard chalked up the most spirits in the top 100 premium spirits brands with eighteen brands listed, while Diageo had sixteen brands on the list. Beam Global Spirits & Wine came in third with nine brands on the list, followed by Bacardi with seven, and Brown-Forman with five. Smirnoff and Bacardi, the worlds two top-selling premium spirits brands, enjoyed solid gains in 2010, and have nearly recovered the ground they lost during the worst of the economic downturn, says Impact. Both brands posted growth in the U.S., their biggest market, as well as in other markets. After losing 1 million cases in 2009, Bacardi gained back 700,000 last year. In 2010, Johnnie Walker, the number three top-selling premium brand, expanded
IAADFS/MHA Issue March/April 2011
by nearly 1 million cases to clear the 16-million-case thresholdmore than 2 million cases above where it was four years ago. Absolut enjoyed its best performance in several years in the U.S., by far its biggest market, with sales up by 2.6% to 4.6 million cases. However, the brands growth outside the U.S. was more impressive, jumping 15% to around 6.3 million cases. Jack Daniels posted 4% growth in 2010 (following a 100,000-case increase the previous year), despite a slight dropoff in the U.S. Exports now account for nearly 55% of total brand sales. Along with Captain Morgan, Jack Daniels was the only top ten brand to show increases in 2009. Led by Smirnoff, the worlds top premium vodka brands had a positive year in 2010. Each of the top five sellers Absolut, Grey Goose, Skyy and Svedka were on the rise. While the vast majority of premium entries in the top 100 grew in 2010, the leading liqueur brands continued to struggle. The top five sellersBaileys, De Kuyper, Southern Comfort, Di Saronno Amaretto and Kahlaall either declined, remained flat, or grew by less than 1%. The non-premium segment of the
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overall top 100 list is dominated by three groups: indigenous giants like Jinro Soju (South Korea), Ruang Khao (Thailand), Cachaa 51 (Brazil) and Takara Shochu (Japan); Eastern European and Russian vodkas, such as Khlibniy Dar, Green Mark, Nemiroff and Khortytsa; and Indian whiskies. Last year, 14 Indian whiskies cracked the top 100 reports Impact, and their aggregate growth rate was more than 13%, following up on 17% growth in 2009. In 2010, only two of the 14 declined. For good measure, eight other Indian spirit brands made the listall from the rum and brandy categories and five of them enjoyed doubledigit gains. The fastest growing premium brand from 2005 to 2010 was Pinnacle Vodka, according to Impact, followed by Svedka Vodka, UV Vodka, Three Olives Vodka, and Patrn Tequila.
Jack Daniels was one of only two of the top ten spirits brands to grow in both 2009 and 2010
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Innovative and cutting edge brands drive growth in the Chase International Spirits Portfolio
With a full variety of innovative and cutting edge premium spirits and wine brands in its portfolio, Chase International, Inc. reports that its spirits sales enjoyed an excellent year in 2010, with double digit sales growth. Chase International President Chase Donaldson says that by breaking tradition through representing uniquely different and edgy brands in the U.S. Duty Free market, his company was able to once again have a fantastic year. This past year was no exception, breaking from the spirits norm, with the successful launches of Proximo Spirits Three Olives Bubble and RangTang Vodkas, Kraken Dark Spiced Rum, Romana Black Sambuca, and Goslings Stormy Ginger Beer, he says. In the packaging area, we also successfully launched a whole new upscale look on 1800 Reposado, Silver and Aejo Tequilas, the #1 Super-premium Tequila in the U.S. The introduction of these new brands, and the continued success of Appleton Estate Rums, Hpnotiq Liqueur, 1800 Tequilas, Three Olives Vodkas, and Peller Estates Ice Wines, helped Chase International spirits sales rise double digits above the previous year. To keep up the momentum, Chase International is introducing an exciting new brand at the IAADFS Show in Orlando that Donaldson thinks will perfectly complement the other spirits it represents. We are very pleased and excited to be introducing Hangar 1 Vodkas, a new super-premium brand from Proximo Spirits. Hangar 1 is Pot distilled, and crafted with rare, expensive exotic fruit and flower blossom ingredients which yield a wonderful authentic flavor. Voted Best Flavored Vodka by Wine and Spirits Magazine, Vodka of the Year by Food and Wine Magazine, and White Spirit of the Year by Spirit Journal, Hangar 1 is the only widely-available vodka to our knowledge that doesnt contain additives or neutral blender. Hangar 1 Straight is made from Viognier wine and blended into the finest mid-western wheat vodka, says Donaldson. Hangar 1 is also available in a range of other exotic flavors - Buddhas Hand Citron, Kaffir Lime, and Mandarin Blossom Vodkas, as well as some seasonal varieties, such as Fraser River Raspberry Vodka and Spiced Pear Vodka. Hangar 1 will retail for around $25.00 for the 750ml size in U.S. Duty Free. After successfully introducing Three Olives Vodka Bubble at last years Duty Free Show of the Americas, Chase International is featuring a new unique flavor to launch this year: Three-O DUDE. Three Olives Vodka is the fastest growing flavored vodka in the U.S. and growing at double digits. Three Olives is growing at double the national growth rate of 13%. From the seriously fun, super-
premium vodka comes the hottest new flavor of the year, Three-O DUDE, a wild fusion of imported English Vodka and the zingy taste of lemon and lime, he says. Last year, we successfully introduced Three Olives Bubble and its sales have been beyond our expectations! Three-O DUDE will be priced around $20.00 for the liter size in duty free. The brand will be backed again by a multi-million dollar ad and TV Campaign for 2011. Three Olives Vodka is in the midst of a run of phenomenal success. The brand was just listed as one of the top 75 of the worlds top premium spirits brands by Impact magazine and highlighted as one of
Chase International is introducing Hangar 1 Vodka at the IAADFS Show in Orlando. The new ultra-modern packaging for 1800 Tequila
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the top five growth brands from 2005-2010. For Three Olives our sales on the brand tripled in 2010 due to a number of new listings, extensive advertising and promotional support domestically in the U.S., and two Hot new flavor introductions Three Olives Bubble and Three Olives RangTang Vodka, says Donaldson. We added many new duty free listings for Three Olives this past year including Alpha Orlando, Ammex Detroit Duty Free, Baja Duty Free, Duty Free Americas, EJE Newark, HMSHost, International Shoppes, and Stellar Partners. On the cruiselines the brand is on Carnival, Celebrity, Harding Brothers and Starboard Cruise Services. In the Caribbean new markets are Bermuda, Grand Cayman, St. Maarten, St. Kitts and USVI, among others. Donaldson says to expect to see big things this year from 1800 Tequila. Our flagship Tequila, 1800 Tequila, remains the #1 Super-premium Tequila in the U.S. 1800 experienced incredible growth in 2010 due to a new facelift, with ultra-modern new packaging, and a multimillion dollar TV advertising campaign running year-round on ESPN, featuring the well-known actor Michael Imperioli, from The Sopranos, he says. Chase International added two other new tequilas to the portfolio this year: El Zarco Tequilas a new, ultra-modern mixto premium double-distilled Tequila in unique and iconic packaging and Bear Hug Tequila Infused Papaya, which joins the other Bear Hug flavors, Vodka Infused Cranberry, Vodka Infused Espresso, Rum Infused Wild Berry, and Rum Infused Mango. We have had solid success with Bear Hug, which is now available through Duty Free Americas and Ammex Detroit Duty Free in the U.S., and throughout the major Caribbean markets of Bermuda, Grand Cayman, St. Maarten and USVI, said Donaldson. Stranahans Colorado Rocky Mountain Whiskey is another unique new offering from the original American Micro-Distillery located in Denver, Colorado. Available in extremely limited supply, Stranahans was awarded the Best Small Batch Distillery Whiskey of the year in 2009. Appleton Estate Rums from J. Wray & Nephew International in Jamaica, which sells well over a million cases a year in 64 countries, and is one of the top 100 premium brands sold in the world today, will be unveiling a new package for its ultra-premium Appleton Estate 21YO Rum. The company is introducing to the Travel Retail market Coruba Jamaica Rum with all natural spices and flavors - available in dark rum, spiced rum, and mango, pineapple and coconut flavors and Appletons Master Distiller, Michael Delevante, The Rum Doctor, will be hosting free Appleton Rum Seminars every afternoon by the Appleton Estate bar in the Chase International booth. Chase International also reports year on year growth with Goslings Black Seal Rum imported from Bermuda, sales of
which were helped by the successful launch last year of Goslings Stormy Ginger Beer. Chase Internationals Italian spirits -- Pallini Limoncello Liqueur and Romana Sambuca Liqueur from Pallini Internazionale also grew by double digit sales in U.S. Duty Free retail and major cruiseline accounts, such as Carnival, Celebrity, Royal Caribbean and others. And its distinctive Gozio Amaretto, from Franciacorta S.p.A. is now available throughout the U.S. Travel Retail market. Franciacorta will be introducing a new line of ultra-premium Chardonnay Grappas called Borgo Antico San Vitale. Other highlights include the expansion of Sazerac Companys Buffalo Trace Bourbon Whiskey through the cruiselines and a number of U.S. travel retail accounts, the launch of Sazeracs Eagle Rare Single Barrel Bourbon Whiskey and Firefly Sweet Tea Lemonade and Southern Lemonade RTDs in a 4-pack. Chase International is also introducing a new gift 50ml 6-pack for Peller Estates Vidal Ice Wine. Another new product Chase International will be introducing this year is Mozart Black Pure Chocolate Liqueur, the only Pure Chocolate Distillate Liqueur on the market made with 87% Cocoa-macerate and precious cocoa distillate. Donaldson says Chase International owes much of its success to its relationship with its customers and suppliers. With the support and partnership of our many customers and suppliers, the strength of our current portfolio of top selling spirit brands, and the introduction of many truly innovative brands, we are confident that we will be able to continue our strong growth in 2011 and beyond. By breaking away from the norm in new products, these brands will also supply some much needed excitement and newness to the spirits category in the U.S. Travel Retail market.
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Booming Patrn XO Cafe pushes Patrn Spirits international sales to new heights
Patrn XO Cafe, which achieved triple-digit percent growth in travel retail sales last year, has quickly become the fastest-growing spirit in the Patrn Spirits portfolio of ultra-premium tequilas, liqueurs, vodka, and rums. The brand, a unique ultra-premium coffee liqueur made with Patrn Silver tequila, will be of particular focus for the company this year at the 2011 IAADFS Duty Free Show of the Americas in Orlando. The success and excitement surrounding Patrn XO Cafe has definitely energized the coffee liqueur category in travel retail, says Patrn Spirits International COO John McDonnell. Patrn XO Cafe is now our third-largest selling Patrn product in the duty free channel, behind Patrn Silver and Patrn Aejo, and based on the trends were seeing, we predict this product will become our second-largest duty free offering in 2011. Patrn Spirits International posted a 53.4% increase in total travel retail sales in 2010, and the companys total international business was up 59%. Patrn XO Cafe was a significant driver of much of that growth. In addition to availability in airport, cruiseline and border stores, Patrn earlier this year finalized an agreement with Tourvest Duty Free to list Patrn XO Cafe for the first time for onboard duty free sales, on South African Airways and Kenya Airways. Much of this success has been influenced by the increasing global acceptance and preference for Patrn tequilas, says the company. We finished last year very strongly. Our international business last year was up just shy of sixty percent, which we could not be more proud of. Every brand we had in the portfolio was up and Patrn XO Cafe was really a driver of a lot of that growth, says Jason Nussbaum, Patrns International Brand Manager. We are seeing great traction both in domestic and duty free arenas. Patrn XO Cafe is a great entry point for consumers both for taste profile and cost point. It allows consumers into the Patrn franchise and it is a great extension of our brand. Distilled at 70 proof, Patrn XO Cafe is a blend of Patrn Silver tequila and coffee to create a unique high-quality liqueur. Because it is tequila-based, the taste is dry, not sweet as with most low-proof coffee liqueurs. The coffee and tequila in Patrn XO Cafe come together to produce a dark, rich spirit, with an aroma and taste of fresh coffee balanced with vanilla notes. Consumers across the globe have discovered the unique taste, versatility, and high-quality of our ultra-premium luxury spirits, and thats reinforced by the growing number of duty free retailers on the ground and in the sky that have found success in offering our products to their customers, added McDonnell. Patrn products are available in 125 airports worldwide, and almost 700 total duty free outlets. Also, starting February 1, Patrn Silver tequila was listed for duty free sales on Swiss International Air Lines, where its already served inflight in the airlines first class cabin. Patrn tequilas are also available for purchase during international flights on American Airlines, USAirways, British Airways, Virgin Atlantic, Air Canada, Air Transat, CanJet, Philippine Airlines, Hong Kong Airlines, Hong Kong Express, Air Macau, and Air Niugini. With its success in travel retail, Patrn has begun creating travel related gifts-with-purchase. Within the GWP arena we are trying to develop traveler related items that really are useful to the travelers. Whether it is the personalized luggage tag program, which is really helpful, or the laptop case, which is an extra level of protection, weve had a great response from travelers, says Nussbaum. Patrn Spirits International will showcase its full portfolio of ultra-premium spirits at the show (Booth 531), including Patrn tequilas and liqueurs, Pyrat rums, and Ultimat vodka. The Patrn Spirits portfolio includes Gran Patrn Burdeos (a limited-production aejo tequila racked in Bordeaux barrels), Gran Patrn Platinum tequila (triple distilled from top agave), Patrn Silver tequila (smooth, soft and light tequila without an oak flavor), Patrn Reposado tequila (oak-aged for at least two months), Patrn Aejo tequila (oak-aged for a minimum of 12 months), Patrn Citrnge (extrafine orange liqueur), Patrn XO Cafe (coffee liqueur), ultra-premium Pyrat rums, and Ultimat ultrapremium Polish vodka.
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Distilleria Bottega has expanded its range of sparkling wines with the
honor to be in that company. With my bottle decor and the campaign imagery, I wanted to convey something of my own vision regarding the archetype of cosmopolitan glamour. The Absolut Watkins launch is backed by a powerful 360-degree marketing campaign in duty free/travel retail, including unique in-store brand installations. The launch premiered in Amsterdam Schiphol in January 2011, followed by launches in Sweden at Arlanda airport in February and in Paris Charles de Gaulle later in the month. Absolut Watkins will be rolled out throughout April in London Heathrow, Istanbul, Rome and
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Frankfurt and the Americas. Absolut Watkins is a most exciting launch for us indeed, said Anders Olsson, Director of The Absolut Company Global Travel Retail. Since our target group is global travelers, and all of our operations are all about traveling, its a treat for us to be able to celebrate the entire concept of stylish travel with a brand new and unique product. A special signature cocktail has been created, Absolut Watkins and Cola, with Absolut Watkins and cola simply poured over ice. The exclusive Absolut Watkins campaign is being executed worldwide by Pernod Ricard Travel Retail.
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specifically Courvoisier Exclusif, the marque designed specifically for cocktails. A dessert paired with Courvoisier has been specially created for passengers dining in the Clubhouse and there is a competition to win a bottle of LEssence
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de Courvoisier, which retails at 2000. The sensory experience, Le Nez de Courvoisier, designed to help consumers understand the complexity of cognac and to have a greater appreciation of the Courvoisier house style, ran weekly at launch in December.
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I N T R O D UC I NG C OU RVO I S I E R A N D C OU RVO I S I E R
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Courvoisier Cognac, 40% alc./vol. Courvoisier Import Company, Deerfield, IL, USA. Courvoisier, the Napoleon device and Le Cognac de Napoleon are trademarks of Courvoisier S.A.S. 2010 Courvoisier S.A.S.
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WEBB moves forward with Edrington; reports best year ever in 2010
World Equity Brand Builders will showcase the new additions to its portfolio from the Edrington Company, along with it strong and growing existing brands, at the IAADFS Duty Free Show of the Americas in Orlando this year. The big news at this show is that at the end of 2010 WEBB signed with the Edrington Company. We are now the distributor for the Edrington brands in the Caribbean, says Andy Consuegra, president of the Miami-based marketing and distribution company. Consuegra says WEBB will handle the Caribbean domestic markets as well as some of the smaller duty free markets in the region for the Edrington portfolio. We continue in the Caribbean with Cutty Sark, which Edrington acquired last Spring. We added in Q4 2010 the number two single malt in the world, The Macallan Single Malt, for the Caribbean. Plus we added Highland Park Single Malt and The Famous Grouse to the portfolio. Consuegra is also particularly pleased about the addition of Brugal rum to the WEBB portfolio Edrington put Brugal in our portfolio for the Caribbean. That is just fantastic. Brugal is a very strong brand, the number three rum brand in the world. We think it complements the whole portfolio very well. Even before the new additions, Consuegra said 2010 was the best year WEBB has had in its now three years in business. I am happy to report that we had a great year, our best year yet. We grew our business 69% last year, helped by the organic growth of the brands we had at the beginning of the year as well as the brands that we launched at the show last year, which were Armand de Brignac champagne, the number one rated Champagne in the world, and St-Germain liqueur, he says. We are operating now in 30 markets and working with 60 distributors, plus the cruiselines. We are pretty much on every cruiseline. We are working from everywhere with one to six distributors per market primarily in the Caribbean and Central America.
IAADFS/MHA Issue March/April 2011
The two brands the fast-growing company launched at last years IAADFS Show have quickly become two of WEBBs best-selling products. We are now selling Armand de Brignac champagne in just about all of the islands in the Caribbean and some markets in Central America. Armand de Brignac exceeded our expectation and is one of our top brands now in the company. It is a brand that continues to get incredible press, and is in demand from both wine collectors as well as artists and musicians. So it is a nice combination. It has done very, very well for us. WEBB also introduced StGermain liqueur, an all natural artisanal French liqueur made from hand picked elderflowers near the Alps, which does very well on-premise. St-Germain had a great year for us as well. We are now in thirteen markets with the brand, very focused mainly in the on-trade business and in duty free stores in the Caribbean, he says. We have StGermain at International Shoppes at JFK and it has done very well there. We have tastings in the stores at T1 and T8 about once a month and are pleased with the sales there. St-Germain is focused. Where we are promoting the brand it is doing very, very well. It is one of our top brands as well. St-Germain creator Robert Cooper, the former owner of Chambord, will be in WEBBs booth in Orlando showing off his creation, which is the darling of bartenders in many top bars. The consumers are discovering St-Germain, but what is driving it is the bartenders have really gotten behind the brand. You can make so many different types of drinks with it. It is really like a cocktail enhancer as opposed to a cocktail ingredient. Consuegra says WEBB continues to seek the right balance between spirits and wine. Overall our portfolio is very balanced between spirits and wine. Our business with wine continues to do very well. The Spanish wines had a really good year last year. They grew 35%. They are part of the Diego Zamora brands, which includes
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Licor 43, he says. Mar de Fardes, a brand from northern Spain, is doing very well in the Caribbean. It goes really well with seafood and it is very refreshing. The Spanish wines do well in the Dominican Republic and Puerto Rico, but it has gone beyond that now. The Spanish segment in the U.S. is doing very well and the Caribbean is now following that trend. We are also adding five brands from the Treasury Wine Estates Group, which is part of Fosters. We are just starting to roll them out in the Caribbean. A brand that has really surprised us, a sparkling wine with fruit from Chile called Envy, is now in five markets in the Caribbean. Its doing exceptionally well in Barbados. We launched the brand Q4 2010 and it has just been on fire for us, he says. We also launched Jamaica, USVI, and the Bahamas and hope to be in all the markets by summertime. We grew our Flor de Cana business by 50%. It is doing very well in Cayman, both domestic and duty free, as well as in St. Martin. We are also just now getting listed into International Shoppes in New York. We call it the most medaled brand in the world, because it has won wore medals than any other rum brand over the past five years. Consuegra also praises Blantons bourbon, calling it one of those boutique brands that talks primarily to the American male consumer. WEBB will be exhibiting at Booth #1433.
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Bacardis 6th annual Cruise Competition Bartender and Chef of the Year attracts record number of entries
The winners of the sixth annual Bacardi Cruise Competition were announced just days before the start of the 2011 Duty Free Show of the Americas during an exclusive dinner at Miami Beachs famed restaurant, The Forge Restaurant. The awards dinner took place at the same venue as the VIP judging, which was held in January, with a distinguished panel of cruiseline executives, media and spirits experts meeting to choose the Chef and Bartender of the Year. Since Bacardi launched the competition in 2005 as a way to support the cruise industry and its talented artisans, recognize innovation onboard the worlds best cruise and ferry lines, and foster a path for staff to further their trade expertise, the contest has grown into a key industry event. This year, the BCC had a recordbreaking 1600 entries; up 77% from last year. Entries came from 27 different cruise and ferry lines around the world. The 1600 recipes were narrowed down to five cocktail category winners and five culinary category winners chosen by global brand ambassadors and mixologists, as well as local culinary experts from Le Cordon Bleu and Chef Dewey Losasso from the Forge Restaurant. In cooperation with the Marine Hotel Association (MHA), the Bacardi Bartender of the Year and Bacardi Chef of the Year food and drink media. Both the cocktail were presented with a cash prize of and culinary recipes included the use of $5,000.00 each and the other semi-finalists different Bacardi products. awarded $500.00 each. Bacardi will also sponsor an onboard event for the ship that enters the most submissions. In addition, the MHA offers the Bacardi Bartender of the Year and Bacardi Chef of the Year a five-day intensive High Performance Leadership course of study for cruise industry professionals at Florida International University (FIU) School of Hospitality & Tourism Management. The judging panel included key food & beverage executives from Norwegian SMT Duty Frees Jorge Azel, Jr. with Bacardis Cruise Lines, RCCL, Princess, Celebrity and Celebration Cruiselines, plus cocktail David Hogan, Travel Retail Manager, and Zachary Sulkes, Regional Travel Retail Manager specialists and journalists within the
The VIP Judges for the 6th Bacardi Bartender & Chef of the Year Cruise Competition
Bacardi Global Travel Retail appoints Leigh Irvine as new Regional Director for the Americas
Bacardi Global Travel Retail has announced that Leigh Irvine has been appointed as the new Regional Director for the Americas Region. Leigh was previously the Regional Director for Western Europe where for the last three years he has been instrumental in developing the growth of the Bacardi Travel Retail business across the UK, France, Spain, Italy, the Netherlands and Belgium. In the 15 years he has spent in Travel Retail, Leigh has gained invaluable experience as both supplier and customer. He began his career as a buyer for the Nuance Group and prior to joining Bacardi Travel Retail in 2007, he was a senior buyer for World Duty Free, part of the Autogrill Group. Commenting on the appointment, Andrew Carter, Managing Director, Bacardi Global Travel Retail Division, said: No one is better qualified than Leigh Irvine to lead our Americas Travel Retail team. His understanding of both the retailer and consumer means he is ideally placed to build strong customer partnerships and engaging experiences across the Americas airport and cruise channels. Leigh will be based in Miami and will commence his new role from April 1. The new Regional Director for Western Europe will be announced shortly.
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taste is incredible. Ginger is on fire right now. There are so many drinks with ginger as an ingredient. We are going to expose it at the show. We will have one of their head people at the show. Prairie Organic Vodka is also garnering attention. Prairie Organic Vodka, which was just listed by Harding Brothers, is certified both kosher and organic, he says. Another interesting brand is Bombora, the only vodka produced and distilled in Australia. It looks like P & O is going to put this onboard the ships out of Australia as a destination item. Cruise passengers will see it in the local market in Australia and then know that the price on the ship is better, he says. We have a program set up for duty free where the consumer can win a free surfboard. UV Vodka is one hot brand that Specialty Brands will have in Orlando. Impact magazine just named UV Vodka as the second fastest-growing premium spirits brand from 2005-2010. Our value-priced UV Vodka now sells more than a million cases in the U.S. We are starting to get domestic placements in the Caribbean and Latin America and are already selling it in Guatemala, says Syner. No. 209 Gin, which Syner thinks has great potential, features a unique history dating back to 1882. The packaging is beautiful and it really tastes good. We are just getting it off the ground, says Syner. One of Syners duty free successes is Rum Chata, which has been at Dynasty Dazzlers in St. Thomas for half a year. The company will also introduce T-1, Tequila Uno at the show. T-1 is doing very well in Mexico. We have a very unique program where a consumer or a retailer can buy a barrel, which holds 37 cases, and have it personalized, aged, and you can tell them when you want it bottled. Each bottle will be numbered. This is very high end, in the $45 range. Specialty Brands will also be introducing Glen Scanlan Scotch at the show.
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I try to do something a little different all the time. My crazy sleeper item of the year is Cream, infused whipped cream in a can, 30 proof. You can do anything with it. It is on and off-premise. It retails for $13.95. It is doing phenomenal in the U.S. It is a wild item that goes after the 21-35 year olds. Specialty Brands has also limited its wine portfolio to only California wines. Going into 2011 we have made a decision to reduce our wine portfolio to California wines and have dropped all of our imported brands. We have secured brands that have a very strong presence in the wine spectator with ratings in the high 90s and brands that are at a price level that allow our current distributor network to have high volume levels.
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Jos B. Chao
Travel Retail veteran Jos B. Chao has officially launched Horizon International Duty Free, a new company that will represent premium brands in traditional travel retail channels. Chao, with more than 25 years of experience representing luxury goods, including 12 years in the world-wide duty free industry, brings his expertise to
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Portfolio Brands Include ULuvka Polish Vodka Vice Vodka Icewine Tortuga Rum Cakes Tequilas de la Doa
Were building the brands of the future - Find us at IAADFS Stand #801
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With increasing restrictions on glass bottles at sporting events, on cruise ships, and on airplanes, Colorado Foods CEO Joe Peleg thinks he has the perfect product to fill in the gap: Friends Just Wine Genuine French Wine in a Can. Peleg says that the lightweight aluminum packaging on Friends Just Wine, developed with a company called Rexam, gives his wine several advantages over wine in glass bottles. Friends Just Wine is a special can with a long shelf life that tastes great. If you taste the wine you are going to see that it is excellent. It is ideal for both airlines and cruiselines, says Peleg. The
Las Vegas immediately jumped out at us as a perfect fit, said Patrick Hughes, Brand Director, Guinness. We want to offer our customers an experience that they cannot find anywhere in the United States and this store will surely provide that experience. With the largest selection of Guinness merchandise located in one venue outside of Ireland, the Guinness Store Las Vegas will be a must see destination filled with true Irish hospitality, says the company. Visitors to the store will not only have the opportunity to purchase quality Guinness products, they can learn about the brewing process and the Guinness brand through visual exhibitions showcasing its legacy and the strength of its advertising. Visitors will even be able to get customized official Guinness pint glasses with their name or with a commemoration date of their trip to Las Vegas. Another interactive element within the store will be a unique touch screen where visitors can learn about the rich history of the Guinness
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brewery and even see if one of their ancestors worked for the brewery. The Guinness Store will be open from 10 a.m. to 11 p.m. daily inside the Shoppes at Mandalay Place.
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Nestl takes its Perfect Store initiative and latest new products to the Americas
Nestl International Travel Retail (NITR) will focus on its Perfect Store initiative and latest new product developments in Orlando. The Americas continues to be an important and growing region for NITR, and the Perfect Store initiative will provide the right framework for retailers to deliver future confectionery growth in the region. The Perfect Store core principles are: make confectionery easy to understand and shop, encourage shoppers to interact with the category, make confectionery accessible to all shoppers and build confectionery displays based on how shoppers shop. As part of the Perfect store initiative NITR will share the latest developments and shopper insight on its Cash Till Point optimization program, and will showcase its virtual reality Perfect Store through the eyes of the shopper. It will illustrate how the individual category drivers can be activated in store to provide the right framework to increase levels of penetration into the store, shopper conversion and basket size. The associated category drivers are: ease of shop, relevant gifting, on the go snacking, and entice, engage and convert. NITR will also highlight its 2011 array of new products based on its three global brands: Nestle Swiss, Smarties and Kit Kat, along with the regional brands of After Eight, Quality Street and Baci. Says Roland Stieger, NITR head of sales: In 2010, NITR has recorded high double digit year on year sales growth in the Americas, notably within South America, with the key drivers centered on the strong Brazilian economy, high passenger growth, effective shopper and category strategy for the Americas, focus investment, working closer with retailers to meet the growing pains of a very dynamic region. NITR will be building on the success of last year and engaging key customers in the region in the activation of the Perfect Store category drivers that in turn will provide the right framework to drive category growth in 2011. Visit NITR at Booth #1123. W.B.
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Jelly Belly develops exclusive Travel Retail line with Alfa Brands
Jelly Belly has developed an exclusive travel retail line that offers a variety of gifts for duty free channels. The new line features 125g 10-flavor gift boxes with customized destination sleeves, a 400g Assorted Flavors Bag, a 270g Bean Tin and a Jelly Belly Coloring Set. The 400g Assorted Flavors Bag is a grab and go pouch that features easy-tocarry handle and fun individual pyramid bags of gourmet Jelly Belly Beans. Specially packaged Jelly Belly Crayons and a Jelly Belly coloring book complete the Jelly Belly Coloring Set. The 28g Jelly Belly Crayons have tips that actually draw in 5 different colors that match the colors of the beans inside the crayon. Jelly Belly beans are gluten-free, dairy-free, gelatine-free, 4 calories a bean and certified OU Kosher. For additional information, visit Alfa Brands Inc. at the IAADFS Show at Booth #530.
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Mens apparel Womens apparel Fragrance Leathers Watches Pens Mens gifts Lighters
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Color Reflections, the South Floridabased producer of high-end digital imaging and grand format graphics, will be exhibiting at the Duty Free Show of the Americas for the first time this year. The Hollywood, Florida office, under the direction of industry veterans owner Herb Jacobson and Production Manager Maggie Rose, with over 40 years combined experience, belongs to the largest network of professional photo and digital imaging operations in the U.S., and counts a large number of the Miami-areas leading travel retail and luxury goods companies among its clients. The independently owned operation provides a broad portfolio of services including Durst Lambda photo prints, duratrans and murals, grand format banners and signs, direct-to-media UV printing, trade show displays and graphics, billboards, vehicle wraps, custom POP and retail displays, banner stands and much more. Offering extreme flexibility, Color Reflections can create a single unit or thousands, an 8 x 10 print or 50 x 200 or larger banner, delivering locally or drop shipping to 200 locations. Everything we make is custom; its not off the shelf, explains Color Reflections salesman Robert Prieto. We transform a customers idea into that specific display. It is custom to that customer.
IAADFS/MHA Issue March/April 2011
All the images, backdrops, columns, discs, and floor graphics in the Thierry Mugler (above) and Cartier (right) displays were produced by Color Reflections
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It is hard to believe that is has been almost thirty years since the first day we met on my first day at Parbel back on May 2, 1982. You were already a year into the business. As I worked for you as a consultant, I have always felt that you trusted me and gave me the encouragement to do my best. I dont know if you realize this, but you are a legend throughout the Duty Free and Beauty Industry. You are respected and admired for your work ethics and everybody loves you, I know that! To my sister, Zoila, and I, you are family. Even though it is seldom that we see each other, I want you to know that I love and care for you dearlyYOU ROCK, PATTI! I know that you have been looking forward to this for a while, so I wish you the best of luck and all the joy in the world on your new Journey, see you soon. Love Blanca Prouve.
Patti Grant is an Institution in the world of Travel Retailing... She is General Grant! She always tells it the way it is and will not beat around the bush. You have to love that about her. Pattis contributions to the different companies she has served are too many to count, but her biggest legacy is undoubtedly the many people she has touched with her amazing heart. Patti grunts and moans first, but then she cares and loves like few people I have ever met... She will surely be missed by many and the whole industry is poorer with her retirement. All her MANY friends wish her lots of fun and happiness in this next chapter of her life and hope she will not be a stranger... I for one am not worried and look forward to sharing more great moments with her soon! Hugs and kisses! Cedric Prouve Patti, It has been a pleasure working with you throughout the last 18 years. You have been a leader in the Duty Free industry and admired by many for your enthusiasm, free spirited attitude and hard work. Therefore I raise my glass, to wish you much happiness in your new venture called Retirement. You will certainly be missed. Cheers! Frances Arteaga
Patti and I met when I joined the Parbel team in 1986 where we both were area managers. Traveling together, I got to know Patti well, and was always impressed by her dedication to work and her professionalism, but equally important she was (and still is) a lot of fun to be with. And so, even though we could not possibly be more different, we became good friends. As we both changed jobs over the years, we always stayed in touch and made time to see each other. About 7 years ago, after having lost my job at Puig, I was going through a difficult time. Patti called me and hearing over the phone that I was feeling really down, dropped what she was doing and came to spend some time with me. This to me summarizes one of the greatest qualities of Patti; she is a true friend with a heart of gold, on whom her friends can count in bad as in good times. I am privileged to be one of her friends. Good luck in this new chapter of your life Patti and lets keep making time for each other in the next 25 years as in the last 25! Gilles Prodhomme
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When I was asked by L'Oreal to start a company in Miami to handle the Duty Free of the Americas, I decided to hire a team of professionals with a strong personality. Patti was one of them and if I cannot remember what she was doing before Parbel, I can say without a doubt in my mind that Parbel would not be the company it is today without Patti's enormous contribution. She was a pillar of the company for many years and left a great souvenir when she left. All of us at L'Oreal and I in particular would like to thank Patti for her brilliant career and we wish her a well deserved happy retirement. Best, Eric Lauzat Some of my fondest memories of Patti revolve around the fact that her Cannes outfits always matched the TR exclusive fragrance. I fondly recall the blue and green combination as well as the pink and orange. I hope Patti still has those clothes as they will be great in Palm Springs!! Patti will be missed. She has great knowledge of this industry and a fabulous sense of humor. Linda Allario Global VP, DFS Beauty I've know and worked with Patti directly or indirectly since 1982 and the one thing I can say is that now, like it was back in 82, Patti is a no BS tell you like it is straight shooter. It is so refreshing to discuss business with her, nothing has changed over all these years. It's been a privilege working with you Patti, and we will all miss your insight and candour. Michael Beler
Patti is one of the best people I have had the chance to meet in my life, business wise and frienship wise ... She has a big heart, she is always ready to help people, she is always the first one to give the chance to people no matter what is their diploma and this is a very rare quality. If I have to resume Patti in one small sentence I will say that : SHE IS A LADY. I will miss her a lot Franois Janin, LVMH Fragrance Brands
I first met Patti Grant in the early 80s when I worked for a small cruise company called Eastern Cruise Lines. I was very new to the fragrance industry, and thru Patti I learned some of the industry traits. She was with Parbel at that time and they were major suppliers to my fragrance/cosmetic business. As my career changed so did Pattis and we continued to work together. She became a personal friend and I consider her one of the most professional associates and the very best of friends. She has a big heart and a loving way and I will never have Patti out of my life. I consider her one of the dearest people I have ever had the privilege to know. Good Luck Patti and many happy years ahead. Jeanne Osborne
+35 years of sharing life! As an adopted member of the Albert family, you will leave a big empty space, that no one else can fill. Love you Mom and Benny
Never thought that when I met Patti 30 years ago (Nov./81), she would have become such important part of my life. Grant, you are part of my family, we all love you, respect you and admire you. In spite of our cultural differences we grew to be very close friends. You have been there during the good and bad times. On the funny side, after all these years you never learned how to pronounce my name correctly but I always responded. You have the qualities that I wish every human being had been graced with. I watched with admiration how you always stood up for what was the right thing to do instead of being politically correct, or doing what was expected of you. In this world of trickery you are a breath of fresh air. Your work ethics are second to none, and you ALWAYS, ALWAYS stayed true to yourself. You will leave a huge empty space in this industry and in the people who know you personally. It has been a privilege to know you. Your dreams have finally come true, so enjoy yourself .you DESERVE IT!!!! You will be dearly missed just because you are an amazing human being!!! Zoila Andonie
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Reisigl Associates: Bringing award-winning Design and Brand Development to Travel Retail
Jim Reisigl, founder of Reisigl Associates Inc, is an experienced advertising designer and creative director who has been producing a wide variety of projects from logo design to trade show and tour route displays for nearly 40 years. His full service agencies provided not only designs, but also the finished product for companies such as IBM, Western Union and General Electric. But after moving to Florida in 1992, he opened a small agency and Todhunter International, a liquor and food company located in West Palm Beach and owner of Cruzan Rum became his largest client. We build brands. We design, we manufacture, we coordinate the building of a brand. From a label to a fully constructed 3-D venue used in store, on premise, in trade shows, in bars, stadiums, airports, cruise ports or on-ship, we are helping to build a brand, Jim Reisigl tells Insider during a meeting in an office/studio crammed with graphics, visuals and POS displays, many quite familiar and memorable. Back in 1992, Reisigl began working closely with Todhunter on building their Cruzan Rum brand. The agency, using creativity and innovative designs, helped drive the tremendous growth of the brand over a ten year period, making Cruzan the fastest growing rum in the world. Reisigl has since been joined by his son, James, who has worked on all aspects of branding, marketing and strategic planning for clients, and oversees and manages the team from creative to final completed project. Although the company works with a range of products and industries, they seem to have a particularly keen affinity for the spirits industry especially in travel retail ventures and number Imperial Brands, Bacardi Travel Retail, Beam Global and Maxxium among its clients. Our projects range from creating a Cruzan Hut for SMTs cruise port store in San Juan, to a drink menu for Bacardi used on Norwegian Cruise Lines, to a multibrand printed sales tool for Maxxium, to the special Travel Retail exclusive 2-pack with glasses for Sobieski, says James Reisigl. Reisigl is doing a lot of work with Imperial Brands for their 4Orange Vodka too, making all the orange crate stands they are using in the airports, and which debuted at the IAADFS Show picnic last year. We made all the bar elements, including this metal muddler. Matching all those oranges to get just the exact shade was quite a challenge, said James. A Reisigl specialty is the conception and design of branded venues, which can range from the iconic Corona Beach Bars which range from an 8-foot portable hut to a 17-foot semi-permanent in airport environments to its latest project, designing the new Cruzan Rum Distillery Hospitality Pavilion on St. Croix. Venue Concept & Design Branded venues can deliver brand
Reisigl Associates teamed up with Sobieski Vodka to bring a Value Added Package to Duty Free. Sales of this double liter package, with two embossed shot glasses, has been quite successful, reports the company.
From conceptual design to custom manufacturing and nationwide distribution, design agency Reisigl Associates brings its designs to reality. The Corona Beach Bar (left) is located in the Ft. Lauderdale/ Hollywood International Airport. Set in the midst of the airport hustle and bustle, this mini oasis has been a big hit. Sales have been brisk (up 200%) as travelers seek refreshment and relaxation under the inviting canopy as they wait for the next flight out. Reisigl has produced 40+ Corona bars to date, with more to come.
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Reisigl Associates designed, manufactured and coordinated the build of the Cruzan Rum Distillery Hospitality Pavilion on St. Croix, rebranding a pre-existing location into an inviting sense of place that in a few short months has become a full tourist experience. Reisigl was involved from original concepts to finished project, including developing logistics for supplies to reach the distillery. Construction on the project was begun in September, 2010 and completed this February, and included such final details as hanging hammocks and setting up a ring toss on the grounds. awareness in a tangible but also subliminal manner, explains Jim Reisigl. We have created everything from a 4 x 6 portable bar to an 8,000 sq-foot, two-story bar/ restaurant. The Cruzan Islands airport bar and restaurant we built in Ft. LauderdaleHollywood International Airport has 7 million passengers passing through each year. By creating a brand atmosphere and experience, it is absorbed into the memory in a way no ad can possibly rival, delivering brand awareness and sales, says James Reisigl, pointing to sketches and models of examples on display throughout the studio. Concepts ranged from a freestanding amphitheater boathouse bar, a themed resort in Reno, Nevada, an Arena branded bar, to a branded rum bar on a beach in Florida. Reisigl Associates offers a full range of agency capabilities including producing packaging, POP & POS materials and other collateral, logo and icon development, and advertising. Corporate sponsorship support is another specialty, as the life-size graphic of Kenny Chesney used in one of his Cruzan Tours can attest. Every project is custom, and every project goes from concept to execution. For more information on Reisigl Associates, go to www.reisigl.com.
James Reisigl in front of the customized trade show stand created for 4Orange Vodka for display at the 2011 Night Club and Bar Show held in Las Vegas in March. The stand was a huge success, reports Reisigl.
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Around the globe they ran on the beaches, they ran on the land, they ran on athletic tracks, they ran on treadmills. They ran past famous landmarks. They ran in silly costumes. They completed their runs on surfboards. They ran with heart and passion. They ran, and ran, and ran.
Martin Moodie, Publisher The Moodie Report
Virginie Cordero (l) and Zoila Andonie (r) at 1.5 km and 3.5 km into their share of the marathon, as they walk/run along the beach in Miamis South Beach in Florida.
Glorious WiT for HAITI team runs in the inaugural Moodie Multi-National Marathon
On the weekend of March 4-7 a most remarkable event took place in the travel retail industry across the globe, when the inaugural Moodie Multi-National Marathon took off. The event, a unique initiative designed to raise money and awareness for the charity Hand in Hand for Haiti, was the brain child The Moodie Reports Martin Moodie, as he continues to recover from a grueling year of cancer treatments. The marathon was run in teams of six, with each team member running/walking one-sixth of a marathon (7.03km), anywhere in the world, over the course of the four days. Many of these teams embodied the Multi-National aspect of the Marathon, with runners competing their legs in different countries. Some companies
fielded dozens of teams. Some companies created special logos. Many companies designed special tee-shirts. The event ended up surpassing the organizers wildest estimations. The marathon raised in excess of US$151,000 in direct donations, wrote Martin Moodie on his Blog on March 8, adding that additional funds were channeled directly to Hand in Hand for Haiti, which is building a world-class school in Saint Marc, Haiti, as part of the response to the tragic January 2010 earthquake. Travel Markets Insider wishes to especially recognize the local team of Glorious WiT for HAITI, four very intrepid ladies who spread their effort over three continents and raised nearly $3200. From Miami, Virginie Cordero of Sunny Touch Corp. and Zoila Andonie, of Duty Free World (transplanted from France and
Brazil respectively); from Uruguay, Liliana Sobredo, Perfumes y Deseo, and from Paris, Orlanes Christine Mazy. As organizer Virginie Cordero says in her own words: Glorious WiT for Haiti walked/ ran the 40kms of the Marathon in a total of 7 hours. Not great, but not too bad neither. and the main thing is that we all thoroughly enjoyed doing it! Christine Mazy covered her 7.03kms Nordic walking in sunny but freezing Bois de Boulogne with a group of friends. Zoila Andonie and I walked together the 7.03kms along the beach of South Beach, enjoying every minute of it!! And last but not least, from as far away as Punta del Este, Liliana Sobredo, who all by herself accomplished an excellent 1 hour run/walk! From those of us who cheered you from the sidelines, a very big congratulations.
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GRADY SIZEMORE
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Marcolins portfolio of licensed eyewear brands also includes Cover Girl, Diesel Shades, DSquared2, Ferrari, Hogan, Just Cavalli, Kenneth Cole New York, Kenneth Cole Reaction, Miss Sixty, Montblanc, Replay Eyes, Roberto Cavalli, Timberland and Tods.
Chamelia beads as a particularly apt example of this strategy: With our Chamelia beads, where you make your own bracelets, we developed an innovative self-serve unit that is particularly appropriate for an airport, where you dont have the sales staff or time to spend helping a customer build a bracelet from an incase setting. We have packaged and boxed sets by bracelet, theme and color, which enables a shopper to put together a beaded bracelet in much less time. It is one way we are differentiating ourselves from the competition. The Chamelia beads also allow the consumer to purchase quite an impressive piece of jewelry in a wide variety of price points, depending upon which elements are chosen to build the item, says Di Cristofano. Business has picked up significantly in the Caribbean for worldclassbrands over the past year, notes Di Cristofano, although he says many retailers are still cautious. Those retailers who started ordering more aggressively benefited the most, he says. worldclassbrands will be displaying its entire product line in Orlando at Booth #730.
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ETC debuts new brands, new product categories and new market reach
Duty free specialist ETC, who has primarily focused on niche fragrance brands and skin care in the past, has found some exciting additional opportunities outside of its standard product categories, says ETC president Elizabeth Taylor, several of which are already finding strong listings among top travel retail venues. As an independent distributor/agent, you have to regularly reinvent yourself and your business to stay in step with emerging trends and current economies, Taylor tells Insider. ETC is in the process of repositioning its brands portfolio, and has begun shifting the primary brand focus to timepieces and electronic accessories. ETC will be introducing a whole range of Electronic Accessories at the Duty Free Show in Orlando. Working through Travel Retail Innovations, BV., the worldwide DF/TR distributor, Taylor will be offering some of the worlds leading brands such as Harman/Kardon, Remington and Sennheiser, among others. With TRI, we will offer an excellent assortment of brands and products coupled with strong customer service, and focus on building brand awareness and visibility, says Taylor. ETC will also be highlighting several different categories of timepieces at a broad range of prices: The range of our portfolio enables us to cater to a wide customer audience and to offer selections to our operators tailored specifically to their retail needs, she says. Among the new watch brands on offer from ETC is RIST watches, KidRIST in retro styles, and Plastic Brand Ion Sports watches. Born in LA, the RIST collections are smart, light-weight and visionary and deliver on style, color, quality, and price, says Taylor. Products for Kids remains a special focus for ETC. I remain true to my original vision for ETC, by continuing to build a category of brands unique for Kids, although several of my brands appeal to kids and adults alike. I am very excited to announce that new to our Collections, we will be launching watches under the iconic Hello Kitty brand. Plus we are building our Disney and licensed watch category by expanding the assortment to include a new, premium collection with exciting designs, larger faces, charm bracelets, silicone bands, ceramic bands, bling. Taylor says that DF/TR retailers are starting to recognize these niche categories as viable and profitable additions to their product offer. This is evidenced by recent listings with major operators -- Duty Free World will list our Hello Kitty and two Mickey Mouse watches in the next inflight program with United Airlines and we have expanded our program with our Disney watches and Light-Up sunglasses with Dufry-Flagship for Norwegian Cruise Lines. We are also in the process of finalizing listings with
a national chain in airports with our Kids Sunglasses, Timepieces, and Hello Kitty fragrances. Added to this, ETC will be presenting at the Show novelty candy and candy combinations for kids featuring a whole array of licensed characters and themes. Collectively, what we continue to offer our retail customers is to partner with them by managing this category with a wide range of brands and products, prices, exciting promotional programs, and impactful displays, each designed to capture the interest and appeal of a vast audience of shoppers. ETC is known for its ability to build brands in this arena, adds Taylor. ETC also announces that it is expanding beyond its core base in North America DF/TR and the Caribbean, extending its reach to Latin America. Taylor will be appointing commissioned sales agents to represent the ETC brands in DF/TR in countries around the world. For more information, visit her at Booth # 1512.
Maui Jim Sunglasses will launch a range of featherweight, flexible sunglasses made from a proprietary alloy that offers new levels of comfort and style, thanks to its very light, ultra-flexible titanium-nickel memory frame.
IAADFS/MHA Issue March/April 2011
designed to compliment a wide range of facial shapes and frame-lens color preferences. Giles Marks, Director Global Travel Retail, adds, Premium sunglasses are very popular purchases in travel retail and there is plenty of competition. However, Maui Jim has a unique selling proposition as we can offer sunglasses which not only look great, they provide a fantastic view too. The new flexible MauiFlex frames, which remember their shape, offer all this and are amazingly light and comfortable too.
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The company previously unveiled the new design at the TFWA World Exhibition in Cannes to overwhelmingly positive reviews, says Mellin. The reaction to the new Braun booth was really positive from our customers, says Mellin. Compared to the way that Braun had been represented in the past it was a massive difference. Everybody was pleasantly surprised and really excited to see the new touch and feel units as well as the new POS materials that we now have to offer the stores. Braun will also showcase two new products in Orlando, the Braun Silkpil7 Dual Epilator (below left) and the Braun Silk-pil Bikini Styler (below right).
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using the kiosk to purchase and obtain additional product information. Automated Retail Concept has since introduced the concept in Frankfurt with Gebr Heinemann, selling perfume and cosmetics at the Gate. Each unit can be fully branded by the supplier and in the case of AKG, the unit serves as a large advertising display offering consumers the chance to learn more about the products and have a total brand experience, as well as make an immediate purchase, adds van Velzen. The company is currently in talks with a supplier about creating a bespoke unit designed for a particular product category. The potential for bespoke solutions is endless. This particular company sees The Shopping Wall as the ideal solution for them to bring their new range of travel friendly products to market, which would otherwise not have such a large shelf space in the traditional travel retail offer. We can accommodate any brand and any category with the exception of age restricted items, such as alcohol. The company views this unique solution as the ideal offer for airports as it bridges the gap between online retail and shopping in store, and answers many modern shoppers requirements. Customers these days are used to the speed and efficiency of ordering online yet want the immediate gratification of
Left and above: AKG by Harman, a leading manufacturer of high-end headphones, used Automated Retail Concepts The Shopping Wall to launch their products at Schiphol Airport.
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having their purchase in their hand. With this solution we can combine all these elements without the need for additional sales staff or large retail spaces, making it an ideal investment for retailers with the highest potential turnover per square feet in the industry. The Shopping Wall complements existing travel retail offers. These units can be placed in high volume areas, such as at the gates and transfer areas where time is critical and shoppers would welcome the opportunity to purchase quality items within minutes, adds van Velzen. Diana Albiol About Automated Retail Concepts: The company was founded in 2008 by a group of shareholders and management with extensive background in travel retail, wholesale, design and airport building. The company is headed by Eric van Velzen, Director Automated Retail Concepts (former director Take Off Multitronics Schiphol BV). Duty Free experts Sheila de Best and Nico Attema are also partners in the company and their experience needs no introduction, as this husband and wife duo were the founders of travel retail electronics specialist Dufri International BV. Theo Spanjaart is also a Partner in Automated Retail Concepts and his background includes INTOS interiors BV, the preferred construction partner of Schiphol NV. For further information on The Shopping Wall contact: Eric van Velzen, eric@aureco.nl Website: www.aureco.nl
The Scorpio Group, which is now focusing greater resources on the Americas, will be featuring its Travel Retail Sales division, plus best sellers and lines for inflight, says Scorpio group sales and merchandising director Richard Kennedy. Some highlights include the sWaP (smart Watch and Phone) range, already successfully sold inflight, and Aviator, Pierre Cardin and Time Design watches. See the range in Booth #1031.
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Deals available for Industrial and Office Space in Miami-Dade County for the Travel Retail Trade
Whether your company is looking for a new warehouse, distribution center or office in Miami - Dade County, the marketplace is filled with opportunities, says Sheri Shoup, Commercial Real Estate Broker, Coldwell Banker and former travel retail executive herself.
Now may be a great time for companies in the distribution and travel retail industries looking to relocate to and within the Miami area. Whether your company is thinking to upgrade office space, change buildings or locations, upsize or downsize, the commercial real estate market cool down has created some wonderful opportunities for companies with locations in Miami. Overall industrial vacancy and rental rates vary by area. Airport West has 8-10% vacancy and rates range from $7.50 - $9.50 per sq. ft. NW/Medley has 10-12% vacancy with rates ranging from $4 - $9 per sq. ft. North Dade has 10-12% vacancy with rates of $3.50 - $6.50 per sq. ft. Hialeah and Central Dade have the greatest vacancy at 15-20%. Hialeah lease rates are $3 - $4.50 per ft. and Central Dade rates are $3 - $10 per ft. The Bird/ Tamiami area has the lowest vacancy rates at 6-9%, with rates from $6.50 8.50 per sq. ft. Beautiful new warehouse, manufacturing and flex space parks have opened offering competitive lease rates and incentives, including improved parking and loading areas. Industrial and warehouse users are moving from the older properties in the eastern part of the county to western Miami-Dade. This trend puts pressure on the older corporate parks and buildings. Tenants are requesting rent reductions and abatements in exchange for longer term leases. Many tenants are locking in these low rates with longer term leases. Purchasing buildings is still a challenge for buyers needing financing. Most purchases are facilitated with Small Business Administration loans. In 2010, 100 warehouses were sold. The average size was 23,721 square feet and average sale price was $55 per square foot. The bulk of these sales occurred in North, Northwest, Hialeah, Central Dade and Airport areas of the county. The industrial condo market experienced higher volume at 150 units sold in 2010. The average unit size was 1980 square feet at a price of $105 per square foot. The bulk of these sales occurred in the Airport and Bird/Tamiami areas of the county. Gorgeous office buildings that were unaffordable a few years ago to all but companies with the deepest pockets are now offering eye popping rates. The central Miami - Dade area will experience the highest vacancy rates as new office buildings come on line. There is a total of 47.3 million sq. feet of rentable space in 464 buildings. Vacancy
Sheri Shoup
is estimated to reach 25%. The average effective rental rates have dropped from a high of $29.62 in 2007 to $24.46 in 2010, quarter one. This area includes Downtown Miami, Brickell, Coral Gables, Coconut Grove, Doral, Miami Airport West, Blue Lagoon, Waterford, Miami Beach, Hialeah and Medley. As an example, I recently represented an aviation equipment company relocating their corporate headquarters from Chicago to Miami. We were able to lease in a class A downtown building on a high floor with beautiful direct bay views. The landlord completely remodeled the 5651 sq. foot space to the tenants specs. He even added 6 months free rent and parking incentive to the tenants five year lease. Needless to say, the company loves their new home, especially since they can walk to the Miami Heat games! If you are thinking about moving your office, warehouse or manufacturing facility, please contact me. Lets see how we can improve your corporate address! Sheri Shoup Commercial Real Estate Broker Coldwell Banker - 305-753-9213 sheri@sherishoup.com
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Innovative brands looking to break into travel retail can turn to new company for guidance
Diana Albiol, the well known travel industry insider and founder of travel retail PR company DA Media Relations, has launched a new company dedicated to helping brands successfully enter travel retail. Her new venture, The TREND agency, combines PR and marketing with sales support to help create opportunities for brands wanting to expand into airports, airlines and the cruise market, particularly in Europe. Albiol brings a distinct experience and point of view to her new agency, which launched right before the TFWA World Exhibition last October. As a former group editor across all titles at Frontier magazine, Diana gained much understanding of the market. She tells TMI: Working at the heart of the industry put me in constant contact with all sides of the industry on a daily basis, from the airport operators, airlines and airport retailers to the buyers and suppliers. When I set up my own PR agency in 2004, it was clear I could help my clients with more than
just PR and media relations. I was soon involved in a variety of business development projects for different brands across the industry. This is what naturally led me to expand my business to include brand management as it complements the PR and media relations I already provide. Although Diana has been providing PR services for the past six years, she relaunched the company to better reflect the services she actually provides: PR and media relations are still at the core of the business and I will continue to include these services for all the brands working with the TREND Agency, says Albiol. But I also worked with many clients to develop their retail position in the market. This has included gaining new listings, as well as managing regional launches, and improving existing customer relations. Many companies really do not have the time or inside knowledge to successfully enter into travel retail and can easily be deterred by this global industry and its demands. As more big suppliers dominate the market, it is increasingly difficult for smaller brands to succeed, she notes. The TREND agency gives smaller companies and brands the tools and knowledge to enter this challenging, unique retail arena with more confidence, she says. The TREND Agency currently represents 3 brands as a sales agent with exclusive rights in travel retail. Albiol is responsible for all marketing and product development for the channel, and handles all client relations on behalf of the suppliers. For PR and media relations, The TREND Agency represents Beschle Chocolatier Suisse and Nadia Minkoff
London, as well as other clients on a project basis. For Nadia Minkoff London, Albiol is developing new business for her range of handbags and vintage-inspired jewelry. The TREND Agency has also been appointed exclusive agent for Spanish jewelry brand Arcobalena. Albiol has also been working with some innovative companies in the travel retail baby market, and has launched Sackn Seat, a colorful, lightweight baby seat that fits into a diaper bag and can be used anywhere. This affordable and simple cant do without travel product is ideal for inflight and airport locations. For more information on how The TREND Agency might help your company especially U.S. brands looking to break into the European marketplease contact Diana Albiol at: The TREND Agency, Tel: +32 4731 75096 Web: www.thetrendagency.com Email: dianaalbiol@mac.com
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accessories and laptop luggage, including several new additions: new neon name tags for easier bag recognition, two new earphone products and TSA approved safety locks. In 2009 the company introduced its Free-Lost-Found service, which gives the consumer the comfort of knowing that his/ her valuables can be traced and found all over the world. This service is completely free of charge for customers. According to Travel Blues head of travel retail, Jonathon Smith, the company has shown strong growth in domestic distribution for the Americas over the past 12 months. He also indicated that the company sees long term potential in the
region. The quality and variety of our product range, our commitment to environmentally friendly packaging, and our Free-Lost-Found service are a powerful combination for airport retailers, says Smith. Travel Blue claims that comparative tests with competitive brands have shown that stocking the full product line can increase sales by up to 25%. Travel Blue will be exhibiting at Booth #2404. W.B.
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Phil Your Bags: Former luggage exec P. Peterson marks 1st year as independent rep
With more than 25 years of experience in the luggage industry, former Tumi travel retail manager Phil Peterson says he is now busier than ever. Peterson has been an independent brand representative since February 2010. At the beginning of the year he was appointed the Americas Agent for accessories supplier Travel Blue handling the companys duty free and domestic business in the region, The name of my company is Phil Your Bags, LLC. As challenging and as time consuming as this is, I love my work and I have some great brands, he says. Petersons leather goods and travel accessories portfolio includes brands with names both very well-known and less so including Brics, Zero Halliburton, Boconi, Tucano, Scully, and A.Saks. Peterson says one challenge he has faced since he began his company is that some retailers are hesitant to take on some of the lesser-known brands. Duty free operators want big name brands. Sometimes brand recognition comes from listing a less known brand. Sometimes it is better to get a product on its rise, he says. Peterson says he has used his almost three decades worth of experience in the luggage industry to build lasting relationships and get his brands listed. I have been in the luggage industry since 1984. In 1988 I was offered a position with what was a little company at the time called Tumi. The next twenty years were pretty eventful to say the least, says Peterson, who became the first full-time salesperson for Zero Halliburton when he joined the company in September 2008. I joined Zero Halliburton because the opportunities for growth were great. Despite 2009 being a really difficult year for not only the luggage industry, but travel retail and duty free in general, I managed to have an increase in sales that year. Peterson still represents Zero Halliburton, but now as an independent representative. Zero Halliburton is one of many of Petersons brands that are listed in JFK T4, where the retail concession is operated by Sevaria. The Sevaria guys have been tremendous. They carry Brics, Zero Halliburton, Tucano, Scully, A.Saks. Brics is really starting to take off there. Tucano is a brand with a tremendous selection of computer accessories. The sky is the limit with Tucano. It is at JFK and at Boston Logan, he says. Scully is a leather goods firm from California with a good stable of products. A.Saks are simple nylon, lightweight bags that are a force in the airports. Peterson says he is working to develop Brics business in Latin America, where it has gotten a foothold at the arrivals store in Sao Paulo airport. Even with his busy schedule and portfolio of leather goods and travel accessories, Peterson says he is open to adding more brands if they complement his portfolio. I am always willing to build and add the right brand. I am always looking, he says.
www.luxner.com
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1800 Tequila Absolut Watkins Amarula American Dream Animale Men Artco ASUTIL Azzaro LEau Bacardi Bay Fireworks Be Fine Skincare Belvedere Duty Free Bijoux Terner Black/Up Braun Burberry Sport Ice Chris Hetzer Photography Cielo Watches Clarins Color Reflections Courvoisier Cross The Dalmore Danzka Vodka Distilleria Bottega Dufry Americas ETC Eva Longoria 117 31 125 94 91 45 43 75 97 157 93 99 IBC 36-37 155 83 163 63 11 49 123 65 107 33 121 29 164 77 Ferragamo Incanto Bloom Finlandia Vodka FDFA Foster Grants Giorgio Armani Acqua Di Gio Giorgio Armani Acqua Di Gioia Guards Polo Club Hangar One Vodka Herradura Tequila Horizon International Duty Free IAADFS Imperial Golden Collection Vodka Issey Miyake Jack Daniels Tennessee Whiskey Jennifer Aniston Jimmy Choo JTI Kattoura Group Kraft Foods Lancome Tresor La Riviera Licor 43 Luxner Photography Majorica Makers Mark 71 25 143 149 BC 4-5 95 115 105 131 41 103 21 101 73 81 35 133 139 IFC-3 8-9 127 161 39 27 Marc Jacobs Eau So Fresh Media Network International Molinari Sambuca Nestle Patrn Tequila Patrn XO Cafe Penguin Perfetti Van Melle Perry Ellis 18 Perry Ellis Trilogy Printers Printer Remy Cointreau TR Reisigl Sharper Image SMT Duty Free Stolichnaya Swarovski Swarovski Aura TAG Heuer Tairo International TFWA Three Olives Vodka Travel Markets Insider White Soul, Ted Lapidus Womanity, Thierry Mugler worldclassbrands YSL Belle DOpium Zippo 23 64 119 135 Cover 111 89 137 87 85 162 10 47 153 51 109 13 15 19 61 17 113 52 79 69 151 4-5 141
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Kevin Baker, key account director for Brown-Forman Travel Retail, will be leaving the company April 30, 2011, to start his own travel retail consulting service. The company has announced plans for a global search for his replacement. We certainly hate to lose a person of Kevins considerable skills but we recognize his desire to start his own consultancy firm and wish him the best of luck. In fact, we plan on taking advantage his skills and contacts as a potential client. In the meantime, other Brown-Forman personnel will assume Kevins duties while we search for his replacement, explained Jim Perry, Brown-Forman managing director of Travel Retail. Baker joined Brown-Forman in 2000 and spent the past 11 years working out of the London office.
LVMH has appointed Christopher de Lapuente as Global President and CEO of Sephora, effective March 31, 2011. All regions worldwide will report to him. For European operations he succeeds Jacques Levy. Christopher de Lapuente will also be a member of the LVMH Executive Committee. In this capacity, he will take on additional responsibilities within the Group. David Suliteanu, who leads Sephora USA, will continue to drive its spectacular growth in the Americas. Commenting on this new organization, Bernard Arnault added: Joining LVMH as a member of the Executive Committee and head of Sephora, Christopher de Lapuente will bring to the Group a wealth of international experience; his know-how will be a precious asset for the global growth of Sephora and add to the
continued success of LVMH. De Lapuente has spent the whole of his career for the past 28 years within the Procter & Gamble Group. TFWA has appointed Ccile Lamotte as Marketing Director with full responsibility for all marketing and communication activities of the Association, effective immediately. Lamotte will be based in the TFWA office in Paris. In addition to her marketing responsibilities, she will oversee the business networking and social events at TFWA World Exhibition and TFWA Asia Pacific & GATE ONE2ONE. Lamotte has a solid background in marketing and communications with 15 years experience in various roles including events management. Lamotte can be contacted by email at c.lamotte@tfwa.com.
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