Americas Duty Free & Travel Retailing (November 2013 FDFA Vol. 23 No. 5)

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NOVEMBER 2013 · FDFA· VOL 23 · NO 5

FDFA’s Abe Taqtaq

Canadian land border

FDFA exhibitors

ALFA’s

steadfast successp.5 p.10 p.24 p.32

FDFA 2013

www.dutyfreemagazine.ca AMERICAS DUTY FREE & TRAVEL RETAILING 3

Letter from the Editor

Staying stable

Canadian land border duty free sales so far this year have man-aged to remain relatively stable as compared to last year, with the latest available statistics indicating

a marginal increase over 2012. While everyone wants and hopes for strong double-digit sales increases, the reality is that year in and year out, it’s simply not a realistic goal. Having said this, it’s clear that a lot of potential remains for the industry.

With cross-border traveler demographics changing in recent months, many Canadian land border operators I’ve spoken to are telling me that fewer Americans are visiting the stores. Traffic is still good for the most part; shops are just welcoming more Canadians than before.

While Americans continue to be a very important part of our industry’s business (they generally exhibit a higher average spend than Canadians), the increasing number of Canadian consumers choosing duty free means that operators have to make adjustments to everything from product mix to promotional activities.

This means finding ways to up Canadians’ average spend through introducing new products suited to their unique tastes; designing new promotional activities that play on their particular proclivities; and of course ensuring that shoppers are well educated on allowances.

In our feature land border report on page 10, you can see for yourself what operators like Windsor-Detroit Tunnel Duty Free; St. Stephen Tax & Duty Free; Thousand Islands Duty Free; Boutique Hors Taxes de la Beauce; Peace Bridge Duty Free; and Woodstock Duty Free are doing to keep sales up. Pages 6 and 14 contain feature retailer reports on Peace Arch Duty Free and Importations Guay Ltée, respectively. We discuss everything from sales and new listings to renovations and getting more Americans in the stores with Peach Arch’s Peter Raju and Importation Guay’s Justin Guay.

Furthermore, for the FDFA’s industry-wide perspective, see our interview with FDFA President Abe Taqtaq on page 5, where he discusses the continuation of the association’s highly successful marketing campaign, why he’s excited for this year’s convention/trade show and what the future holds for the association and the industry in general.

Of course, we can’t forget the suppliers, and from page 24 onward you’ll be able to check out the innovations that they’ll be bringing to this year’s FDFA event across all categories.

Whether speaking of the slowly improving US economy, the operators’ ability to roll with the punches when it comes to catering to a different mix of travelers, the clear com-mitment that suppliers have to the channel or the FDFA’s continued work on the national marketing campaign, there are plenty of reasons to be upbeat as we enter the traditionally busy holiday season. After reading this year’s FDFA issue of Americas Duty Free, I hope you’re inclined to agree.

Kindest Regards,

Ryan WhiteConcessions, Liquor and Tobacco [email protected]

The Americas Duty Free & Travel Retailing maga-zine (ISSN 0962-0699) is published five times a year March, April, June, October and November by Global Marketing Company Ltd. 26 Pearl Street, Mississauga, Ontario L5M 1X2 Canada. It is distrib-uted throughout Central America, South America, the United States, Canada, U.S. Virgin Islands, U.S. Pacific islands, and the islands in the Caribbean.

The views expressed in this magazine do not neces-sarily reflect the views and opinions of the publisher or the editor. November 2013, Vol 23. No. 5. Printed in Canada. All rights reserved. Nothing may be reprinted in whole or in part without written permission from the publisher. © 2013 Global Marketing Company Ltd.

AMERICAS DUTY FREE & TRAVEL RETAILING

26 Pearl StreetMississauga, Ontario L5M 1X2 CanadaTel: 1 905 821 3344; Fax: 1 905 821 2777

www.dutyfreemagazine.ca

PUBLISHERAijaz Khan

[email protected]

EDITORIAL DEPARTMENT

EDITORHibah Noor

[email protected]

CONCESSIONS, LIQUOR & TOBACCO EDITORRyan White

[email protected]

ASSOCIATE EDITORMelissa Silva

[email protected]

ART DIRECTORJessica Hearn

[email protected]

CONTRIBUTORSAndrew Brooks

ADVERTISING SALES

ADVERTISING & MARKETING MANAGERKim Carrera

[email protected]

CIRCULATION & SUBSCRIPTION MANAGERDeepa J

[email protected]

NOVEMBER 2013 · FDFA· VOL 23 · NO 5

Contents5

FRONTIER DUTY FREE ASSOCIATION

Falling into placeThe Frontier Duty Free Association prepares for one of its most successful shows in terms of registrations in recent years and continues to forge ahead with its national marketing campaign

6PEACE ARCH DUTY FREE

The good kind of changeWith more traffic, increased sales and major renova-tion plans, Peace Arch Duty Free President Peter Raju tells Americas Duty Free that he’s optimistic for the second half of the year

8HMSHOST

Bringing its A gameHMSHost brings the Vancouver Canucks Sports Bar & Grill to travelers at YVR and receives multiple nods for the quality of its airport restaurants from GQ Magazine

10CANADIAN BORDER DUTY FREE

Border battlesWeird weather, construction, changing traffic and mu-nicipal meltdowns challenge Canadian border stores

14IMPORTATIONS GUAY

Northern exposure Dynamism in key categories attracts consumers look-ing for deals and duty free exclusives to Importations Guay’s stores

18TRINITY PARTNERSHIPS

For the benefit of allBacardi partners with Toronto Pearson, Nuance and HMSHost for a film festival activation, effective-ly driving sales of Grey Goose and upping traveler engagement

20TFWA WE 2013

A brand new worldJust last month the travel retail industry converged on Cannes for a successful TFWA WE event highlighted by an informative conference program and numerous networking opportunities

24FDFA EXHIBITORS

Up close and personalSayan keeps it fresh n Pronto Innovations continues to capture the market n Canadian Gift Concept takes convenience to a new level

30DISTRIBUTION FONTAINE

Taking it up a notchDistribution Fontaine is increasing its presence in the North American duty free market with new brands across the categories and inventive launch events

31CONFECTIONERY NEWS

Jakeman’s introduces patriotic offerings Turkey Hill Sugarbush expands into outer spaceGodiva gets personal

32ALFA BRANDS

Steadfast successWith several line extensions and product introduc-tions, ALFA Brands is maintaining its strong position in North America

33ACI BRANDS

Cream of the cropWith a strong focus on its beauty offerings, ACI Brands is securing a place for itself in the Canadian duty free market

34CONSTELLATION BRANDS

Committed to the channelInniskillin rolls out its global travel retail exclusive Inniskillin Reserve Icewine range and introduces a very special Sparkling Cabernet Franc varietal

36LIQUOR NEWSDiageo GTME launches Baileys Chocolat Luxe in trav-el retail n Absolut takes on a deeper character with Absolut Amber n El Dorado rums sweep the IWSC n

Haleybrooke International launches Russian Diamond Vodka in travel retail n ALFA Brands partners with Pondview Estate Winery

42TOBACCO NEWSDistribution GVA sees strong sales in first nine months, plans for new launches at FDFA n Imperial Tobacco reveals new global design for Davidoff cigarettes

20


Americas Duty Free recently caught up with Abe Taqtaq, President of the Frontier Duty Free Association (FDFA), at TFWA WE in Cannes to

discuss the upcoming FDFA tradeshow and convention in Niagara Falls, Canada and the state of the Canadian land border duty free industry in general. He tells us that the association is gearing up for a successful show and that the industry is adjusting to a change in cross-border traveler demographics with more Canadians entering the stores in recent months.Americas Duty Free: How are the prepa-rations going for the annual tradeshow and convention? How are registration numbers?Abe Taqtaq, President, FDFA: We’re fore-casting for one of our most successful conven-tions in some time. We’ve got a record number of new suppliers, which is really great, and the suites are almost fully booked. We haven’t seen this many new suppliers in a while, so I think that’s a good indication of the show’s continued vibrancy and importance. There are some new watch and electronics categories, for example, so it’s nice to see more than just the traditional categories represented.

ADF: Next year the show is in Toronto, and the year after that Vancouver. Will this change the dynamic of the show at all?AT: Going from Niagara Falls to Toronto will change things for everyone because the costs will necessarily go up, but I don’t see any issues in terms of maintaining our numbers. I think it may even invigorate the show since

we’ve been in Niagara Falls for five years now. I think delegates will be interested in spending some time in downtown Toronto; there will certainly be more options for entertaining and evening events.

In terms of Vancouver being the venue in 2015, we’ve traditionally seen numbers dip a bit when we’ve had the show there so this isn’t something that will be a surprise. Having said this, we’re a large country and it’s important that the FDFA spread its wings and make sure that the show takes place out west as well.

ADF: Can you tell us a little about your opinion on the state of the industry?AT: The industry is strong at the moment. I think this past summer was decent, with single-digit percentage increases across the board. From what I understand speaking to different stores, there are some pockets that aren’t as strong here and there, but nothing stands out as a major concern.

Getting more Americans in the stores is still a challenge. We’re seeing a lot more Canadians going to the US and visiting our stores on the way, but unfortunately we’re not getting the same spend per head from Canadians. Right now I think it’s a question of adjusting to this development and ensuring that the product mix in our stores is suited to the Canadian shopper.

Of course, we’re not ignoring our American clientele because they’re very important to our

success; we’re just reworking the stores a bit to make sure that the products and promotions are optimized to the travelers that are enter-ing the stores.

ADF: Can you give us an update on the FDFA’s national marketing campaign?AT: We’re looking at creating a mobile-friendly website or possibly even an app as we’re seeing that a lot of people are accessing www.dutyfreecanada.com from their mobile phones. We’ll continue creating more YouTube videos following the very successful allow-ance videos from earlier this year, and we’ll also be working towards ensuring that these videos show up on Google searches to drive more traffic and ultimately more awareness of the industry.

We’ll also be partnering with our suppliers again next year during high season for promo-tions. This year was our pilot and the results were encouraging. We’ll be taking learnings from this year and fine-tuning the program to make sure our supplier partners get a good return on their investment.

Finally, we’ll continuing growing our com-munity on Facebook and ensuring that we get as many hits as possible on the website. It’s an ongoing initiative, so in addition to some new developments you’ll also see us optimiz-ing what we’re currently doing to make sure we’re reaching as many potential consumers as possible.

Frontier Duty Free Association

“We’re forecasting for one of our most successful conventions in some time. We haven’t seen this many new suppliers in a while, so I think that’s a good indication of the show’s continued vibrancy and importance.” ABE TAQTAQ, PRESIDENT, FRONTIER DUTY FREE ASSOCIATION

Falling into placeThe Frontier Duty Free Association prepares for one of its most successful shows in terms of registrations in recent years and continues to forge ahead with its national marketing campaign

by RYAN WHITE

The Peace Arch Duty Free Shop in Surrey, British Columbia tells Americas Duty Free that it continues to show double digit increases in sales in all categories. As of August 2013, the company’s sales

increased by over 15% from the previous year. A testament to the success of Peace Arch’s longstanding commitment to offering high-end products that travelers can’t find at other border stores, the operator reports that the strongest increases have been shown in the cosmetics and luxury goods categories.

Peace Arch Duty Free’s facilities were opened in July 2006, and the company’s 2,415-square-meter duty free store is one of the largest in North America. Due to the high volume of traffic and positive sales results, the operator has announced that it is undergoing major renovations in its cosmetics and liquor sections, with Lancôme and Shiseido already having installed new fixtures. The company has allocated CAD$1 million (US$952,000) for the renovations with an eye toward continuing to reflect the luxury shopping experience for which the store is known.

President of Peace Arch Duty Free Peter Raju tells Americas Duty Free that despite being recently added to the product mix, Michael Kors handbags and watches have been selling well by virtue of the fact that the brand is exclusive to the operator at that border crossing. “In fact, luxury watches in general is a category that has been performing extremely well,” he adds.

In terms of the cosmetics category, Raju tells us that both Shiseido and Estée Lauder have doubled their business at Peace Arch’s store over the first half of this year. “The reason

for the increase in sales across categories has a lot to do with the fact that traffic has increased by about 20% since construction at the Peace Arch crossing was completed,” he explains. “The number of lanes has now tripled at the border and there are more customs officers on hand, making the process much quicker. In relation to the increase in overall traffic, we’re seeing an increase in Asian shoppers specifically, which bodes well for our luxury offerings.”

Shiseido has told Raju that their sales at Peace Arch top sales at any other Canadian land border store. With the newly redesigned Shiseido area, which includes more space, bespoke branding and a newly tiled floor, Raju expects shoppers to continue to be drawn to the brand.

The spirits category is also performing well for Peace Arch Duty Free and will be included in the upcoming renovations. While exactly what will be done to the category is still being worked out, Raju tells us that the space will be in line with other categories in terms of the focus on luxury.

Indeed, Peace Arch Duty Free has tapped into a shopper demographic hungry for high-end brands, and if the double-digit increase in sales weren’t enough proof, Raju notes that the most recent statistics on average spend underscore the fact that travelers are responding to the operator’s focus on luxury. The average basket stands at around CAD$60 (US$58), significantly higher than most other Canadian border stores.

We spoke with Raju as the summer was coming to a close, and given the fact that the season is a busy time for Peace Arch Duty

Free, he told us that promotions weren’t much of a concentration. He did, however, point to American Thanksgiving as a time when pro-motional activity—specifically in the spirits category—will see an uptick. And a little further down a road, of course, as travelers begin their holiday shopping in earnest, they’ll be able to find great deals across categories at Peace Arch Duty Free’s store as the operator makes every effort to capture the imagination of consumers in the gifting spirit.

“With the increase in sales that we’ve experienced, the renovations and the busy holiday season coming up, it’s an exciting time for Peace Arch Duty Free,” concludes Raju. “We’re looking forward to pleasantly surprising our clientele in the months to come with the changes we’ll be implementing.” c

Peace Arch Duty FreeThe new Shiseido space at Peace Arch Duty Free

With more traffic, increased sales and major renovation plans, Peace Arch Duty Free President Peter Raju tells Americas Duty Free that he’s optimistic for the second half of the year by Ryan White

The good kind of

change

The new Lancôme fixture at Peace Arch Duty Free’s store6 AMERICAS DUTY FREE & TRAVEL RETAILING NOVEMBER 2013

The Peace Arch Duty Free Shop in Surrey, British Columbia tells Americas Duty Free that it continues to show double digit increases in sales in all categories. As of August 2013, the company’s sales

increased by over 15% from the previous year. A testament to the success of Peace Arch’s longstanding commitment to offering high-end products that travelers can’t find at other border stores, the operator reports that the strongest increases have been shown in the cosmetics and luxury goods categories.

Peace Arch Duty Free’s facilities were opened in July 2006, and the company’s 2,415-square-meter duty free store is one of the largest in North America. Due to the high volume of traffic and positive sales results, the operator has announced that it is undergoing major renovations in its cosmetics and liquor sections, with Lancôme and Shiseido already having installed new fixtures. The company has allocated CAD$1 million (US$952,000) for the renovations with an eye toward continuing to reflect the luxury shopping experience for which the store is known.

President of Peace Arch Duty Free Peter Raju tells Americas Duty Free that despite being recently added to the product mix, Michael Kors handbags and watches have been selling well by virtue of the fact that the brand is exclusive to the operator at that border crossing. “In fact, luxury watches in general is a category that has been performing extremely well,” he adds.

In terms of the cosmetics category, Raju tells us that both Shiseido and Estée Lauder have doubled their business at Peace Arch’s store over the first half of this year. “The reason

for the increase in sales across categories has a lot to do with the fact that traffic has increased by about 20% since construction at the Peace Arch crossing was completed,” he explains. “The number of lanes has now tripled at the border and there are more customs officers on hand, making the process much quicker. In relation to the increase in overall traffic, we’re seeing an increase in Asian shoppers specifically, which bodes well for our luxury offerings.”

Shiseido has told Raju that their sales at Peace Arch top sales at any other Canadian land border store. With the newly redesigned Shiseido area, which includes more space, bespoke branding and a newly tiled floor, Raju expects shoppers to continue to be drawn to the brand.

The spirits category is also performing well for Peace Arch Duty Free and will be included in the upcoming renovations. While exactly what will be done to the category is still being worked out, Raju tells us that the space will be in line with other categories in terms of the focus on luxury.

Indeed, Peace Arch Duty Free has tapped into a shopper demographic hungry for high-end brands, and if the double-digit increase in sales weren’t enough proof, Raju notes that the most recent statistics on average spend underscore the fact that travelers are responding to the operator’s focus on luxury. The average basket stands at around CAD$60 (US$58), significantly higher than most other Canadian border stores.

We spoke with Raju as the summer was coming to a close, and given the fact that the season is a busy time for Peace Arch Duty

Free, he told us that promotions weren’t much of a concentration. He did, however, point to American Thanksgiving as a time when pro-motional activity—specifically in the spirits category—will see an uptick. And a little further down a road, of course, as travelers begin their holiday shopping in earnest, they’ll be able to find great deals across categories at Peace Arch Duty Free’s store as the operator makes every effort to capture the imagination of consumers in the gifting spirit.

“With the increase in sales that we’ve experienced, the renovations and the busy holiday season coming up, it’s an exciting time for Peace Arch Duty Free,” concludes Raju. “We’re looking forward to pleasantly surprising our clientele in the months to come with the changes we’ll be implementing.” c

Peace Arch Duty FreeThe new Shiseido space at Peace Arch Duty Free

With more traffic, increased sales and major renovation plans, Peace Arch Duty Free President Peter Raju tells Americas Duty Free that he’s optimistic for the second half of the year by Ryan White

The good kind of

change

The new Lancôme fixture at Peace Arch Duty Free’s store

8 AMERICAS DUTY FREE & TRAVEL RETAILING NOVEMBER 2013

Canucks Sports & Entertainment, in partnership with HMSHost, has announced the grand open-ing of the Vancouver Canucks Sports Bar & Grill at Vancouver

International Airport. The 372-square-meter restaurant features distinctive Canucks décor, memorabilia and an assortment of authentic team merchandise for sale.

Designed to recreate a club-level experi-ence at Rogers Arena, the Vancouver Canucks Sports Bar & Grill connects guests to the excitement and action of a Canucks game. In partnership with global restaurateur HMSHost, a world leader in airport dining, the restaurant is committed to delivering premium guest experiences and providing meaningful first and last impressions to visi-tors of British Columbia.

“YVR is a world-class airport, distinctly representing British Columbia,” said Michael Doyle, Canucks Sports & Entertainment Vice President & Arena General Manager. “ We are very happy to be a part of the YVR family and have the opportunity to showcase our passion for hockey in our community. The Vancouver Canucks Sports Bar & Grill and HMSHost are committed to providing exceptional customer service and a true fan experience with every visit.”

“HMSHost looks forward to welcoming Vancouver travelers and fans to a unique dining experience that centers on the love of hockey,” said HMSHost Vice President of Business Development Renee Tedesco. “Guests will feel as if they’re right in the VIP suite of a Canucks game.”

“We are pleased that Canucks Sports and Entertainment are partnering with HMSHost to open the new Vancouver Canucks Sports Bar & Grill here at YVR,” said Tony Gugliotta, Senior Vice President, Marketing and Business Development, Vancouver Airport Authority. “The Vancouver Canucks are British Colum-bia’s premier sports team and we are thrilled to welcome them to YVR. We also want to con-gratulate HMSHost on continuing to provide first-class dining offerings to our passengers.”

Credit where credit is dueIn related HMSHost news, as part of its November issue, GQ Magazine released its list of “10 Best Airport Restaurants in America,” and global restaurateur HMSHost leads the way with three of its restaurants making the Top 10.

Topping the list is celebrity chef Rick Bayless’s Tortas Frontera at Chicago O’Hare International Airport, followed by Michael Voltaggio’s ink.sack, which HMSHost is bring-ing to the new Tom Bradley International Terminal at Los Angeles International Airport. Also operated by HMSHost is Gallagher’s, an

old-school steak house serving travelers at Newark Liberty International Airport, listed at number four.

“Having three of our restaurants named to this list is very exciting and everyone at HMSHost couldn’t be happier about this achievement,” said Steve Johnson, Executive Vice President of Business Development, HMSHost. “Tortas Frontera, ink.sack and Gallagher’s are all amazing restaurants and we’re proud to see that travelers agree.”

Since opening at Chicago O’Hare in 2011, Tortas Frontera has continually been named one of the top airport restaurants around. Ink.sack, by award-winning chef and restaura-teur Michael Voltaggio, is new to the airport landscape. The street side location of ink.sack has become a local legend in Los Angeles and HMSHost is partnering with Voltaggio to bring travelers this innovative concept. Gal-lagher’s at Newark Airport is a classic steak-house, something that is not typically found in an airport. The aged rib-eye and creamed spinach can match, or beat, any steakhouse around, whether in an airport or street side.

Designed to recreate a club-level experience at Rogers Arena, the Vancouver Canucks Sports Bar & Grill connects guests to the excitement and action of a Canucks game

Bringing itsA GAME

HMSHost brings the Vancouver Canucks Sports Bar & Grill to travelers at YVR and receives multiple nods for the quality of its airport restaurants from GQ Magazine

HMSHost

by RYAN WHITE

(from left) Neil Thompson, HMSHost; Renee Tedesco, HMSHost; Susan Stiene, Vancouver Airport Authority; Tony Gugliotta, Vancouver Airport Authority; Jason Garrison, Vancouver Canucks; Michael Doyle, Canucks Sports & Entertainment; Tom Fricke, HMSHost; Mike Gillis, Canucks Sports & Entertainment

advertisement removed for legal reasons


In Canada, everyone complains about the weather, but nobody does anything about it. Working in a tourism-depen-dent business, Jeff Butler, Manager of Thousand Islands Duty Free, located

on the St. Lawrence River in Gananoque, Ontario, probably tried as hard as anyone to get Canada’s 2013 summer season to start on time, but the season’s delayed onset had its impact.

Fortunately things worked out in the end. “As the summer progressed we saw a building of traffic into August that brought us back to end the season about on par with 2012,” But-ler says. “We saw a continuing shift towards Canadian passenger traffic, and as such we’ve made some changes in our product mix to target this demographic.”

The main draw continues to be the liquor, tobacco and fragrance categories, but growth is also being observed in the clothing and accessories lines. “One line that’s been a standout for us over the last year has been the Canadian-made women’s clothing line Sympli. This brand offers a wide range of styles that are very flattering, and are made from a fabric that is ideal for travel—you can roll it up, take it out to wear and no wrinkles!”

Notable new launches at Thousand Islands include the Johnnie Walker Explorers’ Club Collection and the final installment of the Glenfiddich Age of Discovery range. “Scotch whisky has continued to be a strong category

for us as we take special care to ensure a broad selection of products that are unique to duty free, complementing those that are also avail-able domestically,” Butler says.

The fragrance category is always a hotbed of new releases, but Butler has seen renewed strength from some classics. He’s also upbeat about two new marques from Canadian Michel Germain: Sexual Noir for Women and Sexual Steel for Men.

At Boutique Hors Taxes de la Beauce, located in Ste Théophile Québec, sales up to the end of July were down 5%, but Manager Éric Lapointe says that they have rebounded to the point where the store is up 3% over last year. “2013 hasn’t been good but it’s better than 2012 and 2011,” he says. “In fact it’s been the best year in the last five or six. We’re getting more traffic, and it looks like we’re having more US travelers than in the past as well.”

You might think circumstances have com-bined to create a perfect storm for Windsor Tunnel Duty Free Shop. In addition to the ongoing woes of Detroit, right across the bor-der, the tunnel plaza is currently undergoing a $40 million renovation to improve traffic flow. The work began in January and will be completed sometime next year, and while it’s obviously had an effect on business, General Manager Nick Rumfeldt is upbeat.

“The work definitely has an impact on business, but it’s been well handled,” he says. “Sales aren’t far off where they should have

been anyway, so, given the disruption and the reduced traffic, it’s actually almost what you could call a gain.”

Meanwhile the store is in the early feasibil-ity study phase of planned renovations. “We’re planning a re-presentation within the store,” Rumfeldt says. “We have a high proportion of repeat customers and when people visit one site a lot they like to see things changing. We want to be able to manage the traffic flow through the store, move the departments and change the layout when we need to in order to maintain that sense of newness.” Completion is slated for the first quarter of 2015.

Liquor tops the list of category sellers, but with a wrinkle: Windsor Tunnel Duty Free specializes in single malt scotch, which sells especially well. Some good launches in fragrances have helped that category, and tobacco is also a steady performer. Rumfeldt says the store is innovating in the watch cat-egory—where Fossil has recently been brought on board—and is also developing its sports apparel offering.

As far as traffic patterns go, tunnel traf-fic numbers are up. Windsor Tunnel’s main customer continues to be the US consumer, but the numbers are holding steady for now—

Canadian Border Stores

Border Weird weather, construction, changing traffic and municipal meltdowns challenge Canadian border stores

by ANDREW BROOKS

Renovations inside and out have had—and will have—a big impact on Windsor Tunnel Duty Free

Single malt scotch is a dynamic niche for Windsor Tunnel Duty Free and new fragrance launches are doing their bit too

battles

Turkey_Hill_HalfPageHorizontal_outline.indd 1 2013-11-07 12:09 PMwww.dutyfreemagazine.ca AMERICAS DUTY FREE & TRAVEL RETAILING 11

Sales strengthSt. Stephen Tax & Duty Free has had its share of construction woes too, but the three-year widening work on Highway 1 was finished at the end of last year, actually early. “That’s helped a lot,” John Marshall says. “Business has been good this year compared with 2012. We’ve seen a dramatic increase in Canadian and US travelers, which is surprising. It’s helped our gift sales.”

the main growth is occurring in the smaller Canadian segment, Rumfeldt says. He’s bullish on the prospects for Detroit, where a mayoral election was underway on the day we spoke with him. “If the favored candidate wins there should be good things ahead—it will be a revamped city. We can’t predict how things will go, but Detroit has been very proactive in dealing with its problems. Consumer con-fidence is coming back.”

Besides gift items, the usual categories are the best sellers, Marshall says. “I’m optimistic for 2014. We’ve had some pretty good increases this year. With the highway being completed and more people being aware of it, we’re anticipating a good year next year.”

Peace Bridge Duty Free is located at the crossing from Fort Erie, Ontario into Buffalo, New York, and is one of the largest land border duty free stores in North America. This year

The Canadian-made Sympli women’s clothing line has been a standout over the past year

Thousand Islands will leverage the draw of liquor to gain

eyeshare for other categories Canadian traffic is taking charge at Thousand Islands Duty Free


Slipp says that the way things are going he is expecting sales to hold steady and not grow in 2014. This puts Woodstock somewhat behind the game in Atlantic Canada, he says. This year has been poor sales-wise, with lower traffic through the store’s location at the border crossing into Houlton, Maine. In addition, sales penetration has been stagnant, he says.

Éric Lapointe says that liquor, wine and spirits are the top sellers at Boutique Hors Taxes de la Beauce, and the store mounts major category promotions in the summer, complete with signage. For the second year in a row perfumes and cosmetics have come in second in sales, he says. He attributes this to good pricing, a packed product lineup and the fact that these products are purchased mostly in US dollars, which reduces the store’s cost price. Mont Blanc’s Legend is one of the hottest new sellers in fragrances this year. “We’re also selling a lot of the Travalo atomizer that can be refilled from the perfume bottle. It’s not a huge seller but it’s a good add on, a good impulse purchase.”

Lapointe says that rather than periodic large-scale renovations, Boutique Hors Taxes de la Beauce focuses on smaller-scale improve-ments to its 158 square meters of retail space on an ongoing basis. “We don’t have the bud-get for major renovations but we do smaller changes over time, with things like new shelv-ing,” he says.

Getting confident As mentioned, Peace Bridge focuses on com-petitive pricing, and offers a 100% lowest price guarantee on fragrance purchases. If a buyer finds a lower price somewhere else, Peace Bridge refunds the purchase price plus 10% and adjusts its own pricing accordingly. “We’ve instilled confidence in everyone con-sidering purchasing a fragrance that we are the best price against any major US or Canadian retailer,” Gates says. In addition, average spend has increased thanks to the “Shop with Con-fidence” campaign.

On the promotional front, Peace Bridge Duty Free has built some very successful partnerships with US destinations that include special stay, park and fly, and shopping pack-ages. “These have been very successful for us,” Gates says. Approximately 80% of the customers taking advantage of the offers are new to the store and initially come in to shop in response to a special offer. “We’ll continue to build on this program as we see enormous potential,” Gates says.

“We’re consistently educating people on how to shop duty free, and this past spring

sales have held steady thanks to initiatives such as a 100% lowest price guarantee on fragrances, partnerships with US destinations and an innovative ethnic marketing campaign. Marketing Manager Bonnie Gates is optimistic when looking ahead to 2014.

Part of that optimism is based on a targeted online marketing program aimed at a number of promising demographics, including snow-birds, cross-border shoppers, day trippers, sports fans, commuters and weekend and long-term travelers. The program rolled out in the last quarter of this year and will continue into the first quarter of 2014. “We’ve developed very intricate search and display campaign ads that speak to customers who are interested in

St. Stephen Tax & Duty Free has had its share of construction woes, but the three-year widening work on Highway 1 was finished at the end of last year and the operator is seeing an increase in gift and traditional duty free category sales

Woodstock Duty Free rates customer confidence as “fair,” with Canadians spending less; Americans are spending more than previously, but the decline in traffic hasn’t been helping the overall picture

Canadian Border Stores

us and have the ability to shop duty free and that help educate them on the process with unique offers,” Gates says.

Alcohol, tobacco and cosmetics are all doing well, as is typical in most duty free loca-tions, but Gates says that sunglasses, watches and jewelry are also turning in good sales. Among successful new product listing this year, Gates makes special mention of Buckley Jewelry and Bella Perlina as good sales gen-erators. Alcohol sales should be helped with some renovations to the liquor area planned for early next year.

On the new listings front, John Slipp, President of Woodstock Duty Free, notes Body Shop and L’Oréal as new entrants. However

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we conducted a very intense campaign in the East Indian market,” Gates says. “We realize the potential to grow this customer base, and we’ll be expanding into other ethnic areas with campaigns that include handouts done in different languages in highly targeted areas, as well as some very specific online offers on popular sites.”

While Thousand Islands has found overall cross-border traffic this year has been relatively flat to last year, Jeff Butler says they do continue to see more Canadian traffic each year. “While we do still attract a significant number of American visitors to Canada,” he says, “the tide has certainly changed with Canadian traffic now accounting for almost 65% of our total traffic. That’s a stark contrast from histori-cal patterns that saw our American traffic at those levels prior to the currencies moving to par.”

While Butler says customer confidence is good, he and his team are also aware that customers come to the store armed with more knowledge than ever before. “With instant access to the Internet available through their phones, consumers are very aware of product availability and pricing in their domestic markets,” he says. “With a higher consumer knowledge level our customers are very aware of our value proposition, but they’re also confident when purchasing high quality products that are not necessarily available in their home markets.”

Thousand Islands has been able to develop some good momentum in the food and clothing categories by leveraging the popularity of the liquor, tobacco and fragrance sides. “We’ve made some tweaks to our store layout that means that every customer who enters our store will experience our clothing offers on the way in and our confectionery/food offerings on their way out,” Butler says. “Attractive and inviting displays as well as strong value propositions have led these categories to be very strong performers in our overall product mix.”

Not everyone shares a rosy assessment of customer spending pat-terns and general prospects for sales. John Slipp of Woodstock Duty Free rates customer confidence as only “fair,” with Canadians spending less. Americans are spending more than previously, but the decline in traffic hasn’t been helping the overall picture. Woodstock’s experi-ence is that the standard categories—alcohol, tobacco and cosmetics, respectively—remain atop the bestseller charts.

Peace Bridge focuses on competitive pricing, and offers a 100% lowest price guarantee on fragrance purchases

Importations Guay operates three border shops in Quebec located at the St-Bernard-de-Lacolle, Stanstead and Stanhope border crossings. Americas Duty Free sat down with Vice President Justin Guay to discuss business at the shops and Canadian land

border travel retail in general.“I think generally things have been challenging in Canadian land

border duty free over the last couple of years largely due to the exchange rate,” he tells us. “The Canadian Dollar was very strong compared to the US Dollar, but now that’s dipped. In the case of our stores, we’re seeing a small increase in the number of American shoppers lately, but we’re still catering to about 65% Canadians.”

Despite the fact that fewer Canadian are shopping lately, Guay says there’s an upside to the increase in American clientele in that they tend to spend on average $20 or $30 more per transaction than Canadians. “Whereas Canadians are more specific about what they buy, we’ve found that Americans like to look around a little bit more and may be swayed by impulse items,” Guay explains. “The challenge is to get more Americans in the store on a sustained basis.”

Keeping it interestingOf course, product mix is key in any duty free store when it comes to attracting clientele, and Importations Guay makes a point of ensuring the offering stays fresh. The operator’s top three categories in terms of sales are Tobacco, P&C and Spirits, and as such Guay tells us that he puts a lot of work into ensuring that important demographics can find the products they’re searching for in these categories.

In skincare, Asian favorite Orlane has recently been added and the L’Occitaine range has been expanded given its popularity with consumers. Another clear Asian favorite is Icewine, and Guay tells us that the offering in this subcategory is substantial.

“Ensuring that we’re listing travel retail exclusives is another great way to differentiate the offering from the domestic market,” Guay explains. “As such, shoppers can find products like The Balvenie Triple Cask 12, 16 and 18 YO whisky.”

In fact, Spirits fans who enter any of Importations Guay’s shops will notice that the category has been very dynamic of late, featuring tried and true favorites such as Maker’s Mark and Jim Beam products, as well as offerings like Macallan 1824 and Oscuro, all of which tap into a trend that Guay has noticed toward aged Scotches and bourbons.

Despite traditionally selling a lot of white spirits, another popular subcategory at the stores is dark rum: “Our white rum sales have always been very good, but recently we’ve had some customers asking for more dark rums,” says Guay.

“We’ve listed Mount Gay Eclipse and Black Barrel,” he continued. “Pyrat XO was also just listed.”

Of course, this isn’t to say that Importations Guay has taken its sights off white spirits. The operator recently ran a large-scale promo-tion in cooperation with William Grant & Sons which saw the popular Hendrick’s Gin Tea Time gift packs on offer. In its trademark quirky, curious style, Hendrick’s installed a jumbo Tea Time pack in the Spirits section measuring eight feet tall.

Opportunity knocksAs mentioned above, Guay sees great potential in attracting more American shoppers to Canadian land border stores, and says that the National Marketing Campaign, spearheaded by Canada’s Frontier Duty Free Association, has begun to target American cross-border travelers.

“The recent allowance videos—as seen on the FDFA Canada Youtube Channel—that were created in English and French as part of the National Marketing Campaign were directed at both Canadian and American shoppers, which is great,” Guay explains. “I don’t think Canada has done enough to promote itself in the US, particularly in the Northern Border States so this is a step in the right direction. It’s about getting the Americans in the stores; once they’re there, they tend to realize pretty quickly that our prices are very competitive with the US domestic market.

“I know that the Frontier Duty Free Association has more planned to target US shoppers,” he concludes, “so I’m very hopeful that we’re on the verge of a real step change when it comes to Americans seeing the value offered by Canadian land border duty free.” c

“Whereas Canadians are more specific about what they buy, we’ve found that Americans like to look around a little bit more and may be swayed by impulse items. The challenge is to get more Americans in the store on a sus-tained basis.”

Justin Guay, Vice President, Importations Guay

In addition to Spirits, P&C is another popular category at Importations Guay’s stores

Northern exposure

Dynamism in key categories attracts consumers looking for deals and duty free exclusives to Importations Guay’s stores

Importations Guay

A recent Hendrick’s Tea Time promotion is a great example of how Importations Guay makes an effort to differentiate itself from the domestic market through experiential promotions

by Ryan White


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Grey Goose pop-up barAlso in the Arrivals area, an even more spec-tacular sight awaited travelers as the bar/restaurant operated by HMSHost was trans-formed into a Grey Goose bar and restaurant. As well as having the opportunity to enjoy a Grey Goose Le Fizz, travelers could sample the same cocktails being enjoyed by movie stars at exclusive festival parties. Three cocktails—the Glacier Goose, the Canadian Crush and the Torontini—were specially created for this year’s festival and were all available to purchase from the Grey Goose Arrivals bar. Also in the bar was a big screen where travelers could

catch up on Festival news, which was being shown alongside films on how to make the Grey Goose cocktails.

Joining forces with the Bacardi Canada team, in the on-trade Bacardi Global Travel Retail gave travelers the opportunity to enjoy a complimentary Grey Goose cocktail in one of several bars, restaurants and clubs which are festival hot spots throughout the city. The cocktail gift voucher came with a Grey Goose festival guide featuring a map of the best places in Toronto to enjoy a cocktail during the Fes-tival with the recipes to this year’s cocktails on the reverse.

Trinity in Toronto

For the

Bacardi partners with Toronto Pearson, Nuance and HMSHost for a film festival activation, effectively driving sales of Grey Goose and upping traveler engagement

“We achieved great results in Toronto last year and set a high bar for us to top in 2013, but thanks to an excellent collaborative effort we’ve created a seamless Grey Goose experience for festival-goers.”

LEIGH IRVINE, REGIONAL DIRECTOR FOR THE AMERICAS,

BACARDI GLOBAL TRAVEL RETAIL

As the movie world descended upon Toronto for its annual film festival, Bacardi Global Travel Retail, in cooperation with duty free retailer Nuance, HMSHost and Toronto Pearson Airport, celebrated the arrival of Hollywood’s finest.

Bacardi welcomed travelers at Toronto Pearson with a complimentary Grey Goose Le Fizz cocktail—a refreshing mix of Grey Goose vodka, St-Germain

elderflower liqueur, freshly squeezed lime juice and soda water—served in an elegant flute. And to help get consumers in the mood to see a festival movie, each Grey Goose Le Fizz was accompanied by popcorn.

benefitof all

Bacardi effectively raised the profile of Grey Goose in Departures by driving footfall into the Nuance Departures stores

by RYAN WHITE

NG_las_vegas_ad_print_ready_210x297.indd 1 14/03/2013 15:33


A trinity-inspired activationBacardi also raised the profile of Grey Goose in Departures by driving footfall into the Nuance Departures stores as consumers at the Grey Goose Arrivals bar received a card they could present in-store on their way home to receive an exclusive Grey Goose promotion.

Leigh Irvine, Regional Director for the Americas, Bacardi Global Travel Retail, said: “We achieved great results in Toronto last year and set a high bar for us to top in 2013, but thanks to an excellent collaborative effort we’ve created a seamless Grey Goose experience for festival-goers.

“From the moment they arrive in the city we want them to enjoy the very best taste experiences thanks to Grey Goose beginning with the extraordinary cocktails we are serving at the Grey Goose bar at Toronto Pearson,” Irvine continued. “Early results indicate that consumers are continuing their Grey Goose taste experience in the city, with the airport vouchers increasing footfall in key Grey Goose bars.

“It’s an achievement that wouldn’t have been possible without the continued success of our collaboration with Toronto Pearson, HMSHost, Nuance and our domestic Bacardi team,” Irvine adds.

The activity was supported with prominent Grey Goose product displays in the airport’s Nuance stores, hostesses distributing pro-motional cards and maps, and advertising throughout the terminal.

Commenting on the Grey Goose activity, Mike Ross, Director of Commercial Develop-ment at Toronto Pearson, said: “We are com-mitted to offering our passengers exceptional food and drink so the pop-up Grey Goose bar is a great new attraction for Toronto Pearson. For 10 days every year, the film festival takes over the city of Toronto so it’s fantastic that we can now offer our guests an exciting taste of the festival from the moment they arrive in the airport.”

More innovation to comeAmericas Duty Free had the opportunity to speak with Irvine last month at TFWA WE in Cannes, and he tells us that in addition to a very successful film festival activation in Toronto, Bacardi will have some major innova-tions coming to the channel in the months to come, supported with significant investment in airport activations in the region.

“Our position at the moment is one of unlocking total spirits category growth for Bacardi’s Global Travel Retail division,” he said, “and this splits into two main areas of focus: doing what we currently do better and starting to do things that we haven’t traditionally done.”

The first step, says Irvine, refers to Bacardi continuing to focus on its dominant role in white spirits—rum, vodka and gin. “We’re

looking at how we can bring more growth to those very healthy categories and our very healthy position within those categories,” he explains.

With regard to Bacardi stepping out of its comfort zone slightly, Irvine says that the company will look to do more in dark spirits in global travel retail in the months ahead. “We have historically not been as significant a player as we can be in this regard,” he says. “It starts with rum and making sure that we’ve got the full portfolio in play and that we’re not just focused in on Superior.

“We need to come to table with some new ideas and some innovations, so as we progress through this fiscal and into next fiscal, we will have some really great developments across those three areas,” Irvine concluded.

Bacardi welcomed travelers at Toronto Pearson with a complimentary Grey Goose Le Fizz cocktail—a refreshing mix of Grey Goose vodka, St-Germain elderflower liqueur, freshly squeezed lime juice and soda water

In the Arrivals area the bar/restaurant operated by HMSHost was transformed into a Grey Goose bar and restaurant

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result in increased wait times and more pas-senger confusion.

Mortensen then set his sights on the brands, saying that they need to engage more with retailers to help build footfall by concentrating on the all-important point of differentiation.

Notably for the industry worldwide, Mortensen announced the creation of the Duty Free World Council, made up of regional travel retail bodies across the globe. Mortensen said that the Council’s objectives were: to represent, protect and promote the global duty free and travel retail industry; to provide appropriate support to all regional industry associations; and, where relevant and required, provide a voice for the global industry. Mortensen noted that more information on the newly formed

Asked by a colleague which single word I would use to describe TFWA World Exhibition 2013, the word ‘dynamic’ came to mind,” commented Erik Juul-Mortensen, President of TFWA, during the closing press conference last week at the annual show. “Dynamic in that there is a much better sense of working

together in the industry; in that passenger numbers are growing; in that exhibitor and visitor numbers keep increasing.”

In total 6,303 delegates from 2,917 companies in the global duty free & travel retail industry attended the annual trade show, which took place in the Palais des Festivals, Cannes from Sunday, October 20 to Friday, October 25. This visitor figure compares with 6,074 in 2012, an increase of +4%, with +1% in companies.

Of that total 2,110 were duty free & travel retail operators and landlords—up 8%—from 621 companies (+3%). The top ten originating countries of the trade visitors were France, UK, UAE, Germany, Korea, USA, Russia, The Netherlands, Hong Kong and Switzerland.

Awaiting them in the exhibition halls were 470 exhibiting companies, including 46 new or returning companies from all categories, between them showcasing a diverse selection of innovative and prestigious products destined for airlines, airports, ferry and cruise lines, downtown and cross-border duty free stores around the world.

The week started with a range of leisure pursuits for over 300 participants and a glamor-ous Welcome Cocktail attended by 1,432 guests on Sunday, October 20.

The conferenceThe conference portion of TFWA WE kicked off with a word from Moderator Stephen Sackur before Erik Juul-Mortensen took the stage to discuss current challenges and the opportunities for the travel retail industry.

In his summary of the state of the indus-try, Juul-Mortensen noted the particular importance of Africa to the future growth of travel retail. With the continent’s middle class growing at a staggering rate, Juul-Mortensen said that the continent presents “an exciting and positive challenge.”

Juul-Mortensen then went on to note the importance of airlines to the travel retail industry. Quoting CEO and Director General of IATA Tony Tyler, Mortensen noted that margins in the airline industry are “razor thin.” Nonetheless, he said, airlines have large

numbers of aircraft on order, which certainly bodes well for airport duty free.

On the topic of airlines, Mortensen touched on the negative effects of the one bag rule implemented by some airlines. “The one bag rule continues to blight our industry,” he said. “Indeed, the one-bag rule accounts for millions in lost sales.”

Mortensen then talked about airports, noting that understanding why non-shoppers don’t buy in travel retail is likely the biggest opportunity for the industry. He also discussed the road toward abolishing LAG restrictions, explaining that new screening procedures will be put into place in January 2014. While certainly a positive step toward the eventual abolishment of LAG restrictions, Mortensen warned attendees that the new processes may

TFWA WE 2013

A brand new worldJust last month the travel retail industry converged on Cannes for a successful TFWA WE event highlighted by an informative conference program and numerous networking opportunities

TFWA President Erik Juul-Mortensen at the conference portion of TFWA WE 2013

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Duty Free World Council will be forthcoming in the weeks ahead.

Lord Sebastian Coe, Olympic athlete and Chairman of the British Olympic Association, then took the stage to discuss London’s bid for the Olympic Games: “Your industry does rely heavily on the airlines and London 2012 relied heavily on both the airlines and your industry,” he said.

Coe stressed the importance, in any orga-nization, of asking the right questions to ensure success, and in the Q&A session after his talk, he discussed the similarities between London’s bid for the 2012 Olympics and the tender process in travel retail.

Willie Walsh, Chief Executive Officer of

International Airlines Group (IAG), then dis-cussed the airline industry, noting that for IAG specifically, Asia and Africa are particularly attractive regions for future growth. In relation to Juul-Mortensen’s comments on the airline industry, Walsh noted that consolidation is an important part of the solution toward making the airline industry more profitable by allow-ing airlines to strengthen and maintain their brands while still having the security of being a part of a larger entity.

He noted that European aviation is very fragmented because many countries feel the need to intervene and give financial aid to airlines that arguably shouldn’t even be in business. As a result of this, Walsh forecasts

that further consolidation of the industry is on the horizon.

Walsh concluded by giving the Middle East as an example of the potential that airlines and airports have to positively affect a region’s economy. “This is truly an example of what aviation can do,” he said.

John Gerzema, Author, Social Strategist and Consultant, ended the conference portion of the show by talking about the importance of values seen traditionally as feminine when it comes to doing business in the modern world.

His research indicates that feminine values drive usage and preference in brands. “Global elites seek an additional layer of meaning in luxury brands,” Gerzema said.

Workshops and networking opportunities159 early birds attending the Airline & Retailer Workshop on October 22 were treated to informative presentations by the trinity of supplier, concessionaire and airline speakers on the subject of inflight retail.

On Wednesday, 92 delegates attended the Market Watch breakfast workshop focusing on the next generation of evolving markets—the CIVETS countries—and specifically on avia-tion development and the potential for duty free & travel retail in Turkey and Indonesia.

The social highlight of the week was Le Premium Evening at Port Canto, at which nearly 880 delegates enjoyed a sumptuous dinner prepared by Michelin-star chefs and a private concert by rock band Texas.

Those with energy to spare during the week could be found at The Scene, TFWA’s private late night venue, which welcomed hundreds of guests each evening.

TFWA WE 2013

(from left) Moderator Stephen Sackur; Lord Sebastian Coe, Olympic athlete and Chairman of the British Olympic Association; and Willie Walsh, Chief Executive Officer of International Airlines Group

Le Premium Evening


FDFA Exhibitors

Canadian designer of handbags and accessories Sayan will be exhibiting Simon Chang and Miss Caprice handbags for 2014 at this year’s FDFA show. Given that Sayan is a licensee of well known Canadian designer brand Simon Chang, the

products are a priority. Sayan will also present a few Simon Chang and Miss Caprice special gift packages that are ideal for gifting.

Sayan is currently working on expanding its portfolio to include small accessories along with lightweight and practical travel accessories. In order to successfully capture the market, Sayan plans to continually tap into what it calls “fresh types of consumption.” “In order to do that, we try to create new products every season, for different customers or occasions,” says Melanie Sara, Vice President.

In addition to staying relevant by continually launching new products, Sayan effectively engages its customers and also prioritizes customer feedback, carefully considering each customer’s opinion.

Sayan keeps it fresh

At this year’s FDFA show, Pronto Innovations will exhibit its ARX line of accessories for men, which is part of the Jos Von Arx line. Focusing on the 18-40 year old consumer, ARX offers a line of cutting-edge accessories including watches

with silicone straps, bracelets with patented Flexisize clip technology, stainless steel rings and cuff links.

Pronto Innovations will also exhibit its Travel Club line at the show. New from Travel Club is Comfyzzz Memory Foam Pillow, which has been selling very well since introduced to the North American duty free market this past July.

In terms of promotions, Pronto Innovations will offer free freight for the ARX line along with an array of merchandising aids.

Along with the new memory foam pillow from the Travel Club line, Pronto Innovations’ extensive line of Wine Presenters are performing very well, specifically its “Biker” and “Moose Hunter” among others. “Our Travel Club and general barware categories continue to do well due to the newness we bring to the market,” says a Pronto Innovations spokesperson. DataArmor products also remain strong for the company.

In order to capture the market Pronto Innovations works closely with its retail partners to procure dedicated “Pronto Space” along with strong in-store programs that provide sales support. Developing unique retail fixtures based on customers’ needs is also part of the company’s strategy for increasing its presence in the market.

Pronto Innovations continues to capture the market

Sayan will exhibit new handbags for 2014 from Miss Caprice

Sayan is currently giving a big push to its assortment of Simon Chang handbags

At this year’s FDFA show, Pronto Innovations will present a new Comfyzzz Memory Foam Pillow from its Travel Club line

DataArmor products continue to do well for Pronto Innovations


Canadian distributor Canadian Gift Concept has had a strong year thanks to its drinkware and Souvenir Program.

At this year’s FDFA show, Canadian Gift Concept will present several novelties, includ-ing Vino2Go, a double-wall insulated outdoor wine tumbler that incorporates a regular wine glass inside a plastic sealed container; Brew2Go, a beer vessel with a closeable lid that allows for enjoying beer outdoors without spills, while keeping it cold for a longer period of time; Flavor It, a glass water bottle with a built in fruit infuser; White Ice Whisky Stone, whisky stones made of high-tech ceramic; and travel and phone accessories.

Canadian Gift Concept has been giving a big push to its drinkware offerings and as a result, many of its drinkware products have become bestsellers in duty free.

In terms of consumer buying trends, Canadian Gift Concept has noticed a strong demand for practical, everyday items that are trendy and offered at an attractive price point.

Canadian Gift Concept takes convenience to a new level

Canadian distributor DFX has had a busy year with several new developments. DFX announced its partnership with I.C.P International with the launch of their Bella Perlina line on the Canadian border at this year’s FDFA show in

Niagara Falls.With over five million units sold, Bella Perlina is the top fashion

jewelry collection of European beads and charms in the world. Bella Perlina bracelets are one-size-fits-all and are interchangeable with a large selection of hand-blown glass beads, crystals and unique charm sets. Compatible with Pandora and other leading brands, all bracelets, charm and color sets come with a beautiful gift box. Price points range from US$14.95 to US$39.95.

DFX is also now distributing Belgian chocolatier Duc d’O, the big-gest producer of flaked chocolate truffles in the world.

Recently debuting a new look after extensive consumer research, Duc d’O developed a new brand positioning called “Untamed Deli-cacy,” which is based on the contrast of a truffle: the rough exterior in combination with a smooth and delicious interior, and the knowledge that a truffle is an unique, artisanal piece. The new logo and packaging were changed to be in line with this new brand positioning and now display a unique, handmade craftsmanship.

Additionally, each box of Duc d’O chocolate truffles has a handmade touch to it, making no two packages of Duc d’O truffles ever completely

DFX takes a sweet and stylish approachthe same. A piece of rough straw and a wax seals the package, which is adorned with a handwritten label. Duc d’O has a special, secret recipe to make the chocolate filling creamy, but also light and airy.

With 2013 serving as the Belgian chocolatier’s 30th birthday, Duc d’O is well positioned for future growth. Although Duc d’O flaked chocolate truffles are already well established in the chocolate sector in over 70 countries, it now aims to increase its presence in points of sale with its new brand positioning and appearance.

The Flavor It glass water bottle with built-in fruit infuser

The Brew2Go beer vessel with closeable lid

White Ice Whisky Stone is a set of whisky stones made of high-tech ceramic

The Vino2Go double-wall insulated outdoor wine tumbler

Bella Perlina bracelets are interchangeable with a large selection of hand-blown glass beads, crystals and unique charm sets

Belgian chocolatier Duc d’O is the biggest producer of flaked chocolate truffles in the world

FDFA Exhibitors

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PROVIDING COMPLETE AND INNOVATIVE SOLUTIONS


Toxic’s new 2014 Collection offers unique shapes and fittings for a glam-orous, chic, elegant or classy look.

Toxic’s 2014 Collection shows a commit-ment to the highest standards of innovation, quality, materials and workmanship. An astounding 70% of Toxic’s 2014 collections are handmade frames using Acetate, a durable and flexible material. Toxic’s Acetate frames are adjustable by applying heat to the frame, which gives each pair a unique fit for each face. In addition, each frame in Toxic’s 2014 Col-lection can be fitted with prescription lenses.

Because the days that sunglasses were only purchased for protection from the sun seem to have passed, Toxic’s focus is to design sun-glasses that make fashion statements and serve more as fashionable and luxury accessories. In addition, Toxic uses sharp, bright colors for each piece along with polarized UV lenses.

Opticaset creates fashion statements with new Toxic collection

Canadian design house for fashion accessories and design goods Joanel is currently in the midst of developing a new brand approach. Part of this approach involves the recent enhancement performed at a shop-in-shop in Frontier Duty

Free with signage and a customized display.Sales are doing well for Joanel this year, and the company has sev-

eral new developments in the works, such as opening a new private labeling department to support large companies in their customized offers to clients. Joanel also developed cosmetic bags for the fragrance and cosmetics industry as well as wine bags for the liquor and wine industry. “We offer good quality, good prices and personalized offers for our clients,” says a spokesperson for Joanel.

In terms of buyer trends, Joanel feels retailers are ultimately looking to satisfy the increasing demands from their customers. Additionally, Joanel feels retailers are seeking quality, trendy and unique products.

To keep up with customer expectations, Joanel focuses on research, market intelligence and innovation. Joanel believes its most notable innovation is its Lux Bag, a technological handbag (patent pending) with lights integrated into the lining of the handbag, which has been very well received. Developed with the help of CTT Group, a multi-service organization dedicated to combining technology and textiles, the Lux Bag contains a flexible “web” of LED bulbs built directly into the lining and a touch-activated fabric switch that turns on the system when needed. The Lux bag is powered by one replaceable AA battery and to save energy, the system also includes an auto shut-off to prevent unwanted or prolonged use.

“This technology truly solves a simple, but incredibly frustrating, everyday problem for women,” explains Johanne Boivin, President and designer of Joanel. “Joanel is already known for its chic yet functional aesthetic and we are proud to be providing women with an innovative solution that will undoubtedly transcend fashion trends. With these collections, we are taking Joanel a step further by uniquely incorporat-ing the latest technology into our products.”

When it comes to the accessories category, Joanel has noticed that some styles are more popular than others based on customers’ needs. For example, the traveler is more drawn to the Mouflon cross-body bag, whereas the fashion-savvy consumer is interested in the high-end Ugo Santini leather handbag. For the consumer looking for the everyday fashion handbag, the Joanel tote has continued to be a popular choice.

Joanel fuses innovation, technology and style

Frames in Toxic’s 2014 Collection feature metal embellishments, seen here on the side of the frames

Metal detailing on the front of the frames is a feature seen throughout Toxic’s 2014 Collection

The cross-body bag from Mouflon is ideal for travelers

Fashion-savvy consumers tend

to be drawn toward the high-end Ugo Santini leather handbag

FDFA Exhibitors

Congratulations to the FrontierDuty Free assoCiation team ontheir 28th annual Convention!

Please visit us during the FDFA 2013 convention at our Haleybrooke Suite # 3150 Please visit the Patrón Suite #3050

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Family-run Canadian distributor Dis-tribution Fontaine has made a name for itself in the North American travel retail market since its begin-nings in 1993. Over the last 20 years,

the company has grown substantially, which has been reflected in its growing portfolio.

At this year’s FDFA show Distribution Fontaine’s goal will be to focus on its 2014 launches, specifically fragrances as well as its new confectionery products. “The goal is to prepare for customer feedback, which will help us determine if we move forward with a product,” says Jennifer Fontaine, Co-Owner.

Regarding fragrances, Distribution Fon-taine currently has many fragrance suppliers, one of which is Proctor & Gamble. “Presently we have a new Dolce&Gabbana fragrance called Dolce,” says Fontaine. “Dolce&Gabbana is one of the biggest brands in the market, considering Chanel isn’t offered.”

Dolce&Gabbana’s Light Blue fragrance is generally a top ranking fragrance for Dis-tribution Fontaine, usually in the top three fragrances. “It’s a brand that we support every year because we have great success with it and the new fragrance, Dolce, is a new pillar for the line—it’s a whole new concept. So we’re definitely going to focus on this new pillar,” Fontaine adds.

Distribution Fontaine also launched Eros from Versace, which performed extremely well, not only at launch, but after launch as well.

Ongoing in-store promotions are high on the priority list for Distribution Fontaine, especially surrounding fragrance launches. “We support our staff with unique contests,” says Fontaine. “Christmas is coming up so

we’re doing a contest with our classic fra-grances, the most popular. It’s a good Christ-mas gift to offer.” During the Christmas season the top performing stores for Distribution Fontaine include Blue Water Bridge, Peace Bridge Duty Free, Windsor-Detroit Tunnel Duty Free and Ammex Duty Free (on the US side).

Confectionery is another growing category for the distributor, who just added Hershey’s Brookside range to its portfolio. “Brookside is a new product we launched this year and we’re on special promotion for the rest of 2013,” says Fontaine. “We’ve received a good response.”

A big development for Distribution Fon-taine is the addition of supplier Charton Hobbs earlier this year. “They represent the Moët Hennessy portfolio which is a new brand for us—it’s a new segment in our company.”

With 2014 on the horizon, Distribution Fontaine is focused on its strategy of making its presence known in the market. “One of our strongest points is being present and making one-on-one decisions—taking action right away,” explains Fontaine. “We support the market in terms of HPP launches and we’re very proactive with that as well.”

Equally of focus for Distribution Fontaine is training, not only for beauty advisors, but all staff, including cashiers and warehouse staff, so every member feels comfortable talking about the products. “We noticed that if we conduct training for a beauty advisor she’s only work-ing 40 hours a week and the store is open for longer than 40 hours, so I think we need to capture on that,” Fontaine explains.

To stay relevant in the market, Distribution Fontaine is open to experimenting, specifically when it comes to events, such as the beach bar it set up in four stores for Dolce&Gabbana’s Light Blue fragrance this past summer. “We try different things,” says Fontaine. “This year we’re going to try an engraving station for a launch for one of our Gucci fragrances—the fragrance is called Made to Measure.” The engraving station will be present at Blue Water Bridge Duty Free and Peninsula Duty Free.

“We’re trying to come up with new ideas for launches and not repeat the standard launch,” she adds. Beginning this month and ending in December, customers who purchase the fragrance will be able to have their initials engraved on the bottle.

Distribution Fontaine

Distribution Fontaine is increasing its presence in the North American duty free market with new brands across the categories and inventive launch events

notch

Distribution Fontaine’s beach bar at Ammex Duty Free and Blue Water Bridge Duty Free for Dolce&Gabbana’s Light Blue fragrance

Taking it up a

Dark chocolate-covered pomegranate

pieces from Brookside, a new addition to Distribution

Fontaine’s portfolio

Brookside’s Dark chocolate-covered Açai berries and blueberries


At this year’s FDFA show, maple syrup company Jakeman’s will be introducing—in the words of Stompin’ Tom—the good old hockey game. Jakeman’s will bring its Hockey Player Bottle range to the show, which is soon to be joined by the goalie bottle. “Early response has been positive,” says Bob Jakeman, President.

Next and soon-to-be released from the brand is Jakeman’s J Bear. “The success of our maple bear was too good to ignore, so we’re bringing him back as ‘J Bear,’” says Jakeman. J Bear will be available as of January 2014.

Jakeman’s has reported stronger sales this year when com-pared to 2012, with increases in Walt Disney World shops and in airport stores throughout North America, leading the way with an

increase of 15%. Jakeman’s cruise line business is also showing considerable growth.

“The strength of our brand is coming into play throughout North America and attracting a whole new group of duty free retail buyers,” says Jakeman. Part of this attraction is a result of Jakeman’s distinctive red and white Canadian-inspired ribbon, coupled with its consistent quality, according to Jakeman. “Our cookies have evolved and now use only healthy ingredients—no saturated fats, trans fat or artificial coloring,” he adds.

In 2011, Jakeman’s Maple Products received the Ontario Premiers award for innovation in the food industry. “We have now received notification that we have now won the 2013 award,” says Jakeman.

Confectionery Newsby MELISSA SILVA

Godiva gets personal As the end of another successful year approaches, Godiva has its sights set on Spring 2014, specifically its new gift box, “Messages Tout Chocolat.” Presented in a chic coral packaging, Messages Tout Chocolat will begin shipping in March. “The elegant and refined gift box featuring four new recipes is the perfect way to express good feelings to someone,” says Diane Buchanan, Global Travel Retail Region Manager for Americas and the Caribbean. Featuring 18 pieces, Messages Tout Chocolat is a travel retail exclusive and will only be available for one year.

To accompany the Messages Tout Chocolat launch, Godiva will implement sensorial pods in key locations, in which customers can experience sensations, such as zen, love and joy via sound and light. “We’re looking at some larger venues, maybe at some of our airports where we have boutiques like at Waikiki,” says Buchanan.

Earlier in 2014, Godiva will launch its Chinese New Year gift box. “Traditionally we just focus on the Chinese New Year, but because it’s the Year of the Horse, it ties perfectly with our logo. It will ship in November, so we’ll have it for six months instead of two or three.” Godiva will feature an outpost in Vancouver Airport focusing first on Christmas and then transition into Chinese New Year.

In terms of the company, Godiva is continuing to expand its team with a focus on Latin America and will also be expanding its business on the Uruguay and Brazil border.

Turkey Hill has had busy year with new developments in duty free. Sales overall in frontier duty free stores have been very positive. “We saw a sales increase in every store except one,” says Brian Herman, Chief Executive Officer. “Our sales to our border store customers grew by another 12% so far this year, which equals a 25% increase over two years.”

For 2014 Turkey Hill is planning to build on the success of co-brand-ing Canadiana chocolates with Canadian chocolatier Laura Secord. In addition, the company is continuously making improvements to its packaging and looking for new inspiration.

Of all Turkey Hill’s recent developments, two are most notable, the first being its Maple Cream Cookies receiving the award for Best Specialized Product – Confectionary Food and Souvenirs at the FDFA Convention in 2012. Secondly, Turkey Hill’s Maple Syrup was chosen by the astronauts to take on their recent mission on the Space Station under the command of Chris Hadfield.

The Goalie Bottle is the

newest addition to Jakeman’s Hockey Player Bottle range

Godiva’s Chinese New Year gift box will launch this month and will be available for a limited time

Turkey Hill’s award-winning Maple Cream Cookies

Turkey Hill Sugarbush expands into outer space

Jakeman’s introduces patriotic offerings

For 2014 Turkey Hill is planning to build on the success of co-branding Canadiana chocolates

with Canadian chocolatier Laura Secord


Considering the unstable economy worldwide this year, ALFA Brands has witnessed a substantial increase in sales in each of its categories this year, largely as a result of several line

extensions and new product introductions. On the heels of this success, ALFA Brands is set to unveil several novelties at this year’s FDFA show (suite 950).

ALFA Brands will be launching a new product from Sencha Naturals—Green Tea + C Effervescent Drink Mix with Vitamin C (300% DV), available in original, dragon fruit and citrus ginger. The mix dissolves easily in water and provides immune support thanks to the vitamin C, organic matcha and Japanese sencha, two antioxidant-packed varieties of

green tea. All products from Sencha Naturals are GMO, gluten, and wheat free, vegan and contain 10mg of caffeine per packet.

ALFA Brands is also introducing a new stand-alone-shipper for Torie & Howard’s organic, kosher and non-GMO hard candy at this year’s show. The new shipper displays 64 two-ounce tins of the candy, providing an appealing off-shelf promotional display for the two-ounce recyclable steel tins of all four flavors. It stands four feet high with a footprint of just 15 ½ by 15 ¼ inches and contains eight display units. The candy is USDA organic and kosher certified and contains no GMOs, pre-servatives, artificial dyes, casein, soy or gluten.

In addition, ALFA Brands is introducing three new Giant PEZ Dispensers for 2014 including Giant PEZ Darth Vader Dispens-ers, Giant PEZ Hello Kitty Dispensers and Giant PEZ Santa Dispensers. The dispensers come four to a case and each dispenses six full rolls of candy.

ALFA Brands has also announced the introduction of a new collection from Jelly Belly—Enchanted Mix Sparkling Jelly Beans featuring the Disney Princesses. Disney hero-ines Ariel, Cinderella and Rapunzel are fea-tured on two gift bags and a gift box. Each package is filled with the Enchanted Mix, which features Jelly Belly jelly beans in Berry Blue, Blueberry, Bubble Gum, Cream Soda, Orange, Sour Apple and Very Cherry flavors.

Also available is a 7.5 oz shimmering gift bag that stands upright on shelves and inte-grates well with both Jelly Belly and Disney displays. Another new product available through ALFA Brands for travel retail is the Jelly Belly Ultra Gift Box featuring gold foil accents and bold colors, wrapped with a royal purple band. The gift box features 20 assorted Jelly Belly jelly bean flavors.

In the wine and alcohol segment, ALFA brands is introducing Cocoa Vino Chocolate Wine into Ontario duty free stores. “Cocoa

Vino blends the finest cream from the famed Galloway Dairy in Wisconsin, natural choco-late flavors and essence from southern Cali-fornia and premium California port, and uses only handcrafted, small batching techniques in its bottling process,” says Amy Hildreth, Operations Manager of ALFA Brands.

Available in Chocolate, Mint Chocolate and Cherry Royale flavors, Cocoa Vino has a one-year shelf life and no chalky aftertaste.

In addition to new product launches, ALFA Brands also has several new introductions taking place. “We have new introductions with Pretzel Pete and King Henry’s at Saveria at the JFK Airport,” says Hildreth. “We also have tastings and promotional programs with Icewine with International Shoppes at the JFK Airport.”

ALFA brands has also introduced new packaging for Pillitteri Estates Icewine and is giving a big push to introducing more organic and natural products such as Sencha Naturals Green Tea Breath Mints; Torie & Howard Organic Hard Candies; and King Henry’s All Natural Line of Trail Mixes and Dried Fruit.

“Our buyers are very much aware of the trend towards healthier living and are seek-ing out Organic and all-natural products that will provide an alternative to the traditional snack items available for the consumer while traveling,” Hildreth says.

In terms of line extensions, ALFA Brands have several in the works, including Jelly Belly’s Sunkist Fruit Gems, now made with all-natural ingredients. Jelly Belly recently launched their new Sunkist Dark Chocolate Raspberry Sticks featuring real fruit purees and juices. Sunkist’s Dark Chocolate Orange Sticks are also included in this line.

Looking ahead, AFLA Brands plans to stay focused on the Americas in terms of regions and will likely increase its exposure in the Caribbean where the company has recently made progress.

ALFA Brands

SteadfastWith several line extensions and product introductions, ALFA Brands is maintaining its strong position in North America

successNew from Jelly Belly is the Ultra Gift Box featuring gold foil accents, a royal purple band and 20 assorted Jelly Belly jelly bean flavors

The new Giant PEZ Darth Vader Dispenser

The new Giant PEZ Hello Kitty Dispenser

by MELISSA SILVA


Since its beginnings as a small domestic accessory shop in Mon-treal in 1981, Canadian supplier ACI Brands has come a long way. Entering the duty free and

travel retail market only about five years ago, the company has made strides in several cat-egories, most notably accessories and beauty.

At this year’s FDFA show, ACI Brands will display several novelties from its accessory and beauty portfolios, including a new lineup of Kenneth Cole business bags for men and women, which will be available in its duty free shops in Canada. “We are really focusing on Kenneth Cole right now.” “It’s doing really well.” ACI Brands is installing a Kenneth Cole Reaction display in the Dorval location for Aer Rianta featuring business bags for men and handbags and small leather goods for women.

“We’re also displaying Calvin Klein small business bags and leather goods and Under Armour eyewear which is something that we’ve never displayed before in duty free,” says Michael Rozenwald, Account Manager. “The eyewear is a really hot commodity.”

In addition, ACI Brands will also be show-ing Ogio technical backpacks and duffle bags for the first time. The company also offers licensing products with Disney and M&Ms, which will also be presented at FDFA this year.

Regarding its beauty portfolio, ACI Brands is currently updating its Stila assortment options at store level to introduce new prod-ucts for 2014. “The duty free stores will be current and up-to-date with the latest trends in Stila cosmetics,” says Ash Kumar Director, Beauty Division, ACI Brands. Novelties from Stila, Anna Sui cosmetics, China Glaze and Rapid Lash will be displayed at FDFA.

With eyelashes a huge trend at the moment, ACI Brands is capitalizing on the demand with Rapid Lash, one of the first eyelash-enhancing serums on the market. “The product truly works. It’s a unique delivery system. It extends the shedding of the natural lashes which gives you longer and fuller-looking lashes and in the retail market, it’s one of the largest, single-SKU

sold items,” says Kumar “Eyelashes are a huge category and now what we’re seeing is that women wanting their own natural looking lashes to look fuller and longer. This product provides that.”

ACI Brands has noticed an increased demand for colorful eyeliners. “We have a beautiful range of liquid eyeliners and the Stila Smudge Stick Waterproof Eye Liner in different colors,” says Kumar. “It’s a great way to show some of your individuality without having to commit to a catwalk look.”

Also new from Sitla is the Stila CC Stick, a color correcting stick featuring a green core. Available in six shades, the Stila CC Stick allows you to color match your skin, while the green core provides color correct-ing and skincare properties. “It moisturizes, it provides color correction and it gives you light to medium coverage—the coverage is buildable,” says Kumar. Compact, the stick is small enough to fit in a purse, making it ideal for traveling.

From the beauty perspective, Stila is ACI Brand’s biggest activation at this year’s FDFA show. “We’re going to have a fully loaded display so that we can feature all the unique-ness of the brand,” says Kumar. “Our ‘hero’ product, Stila’s BB cream will certainly be in the mix.” Regarding the Stila BB Cream, ACI Brands has extended this property range to include a bronzing BB cream as well as an illuminating BB cream.

Moving forward, ACI Brand plans to really focus on its core prop-erties. “We’re finding that the Stila con-sumer is a very loyal consumer and really supports a lot of our core offerings,” explains Kumar. ACI Brands has developed Stila limited edition gift sets and plans to introduce them into

duty free when available. Currently, Stila is available in West Coast Duty Free, Aldergrove Duty Free, and promotional gift sets will be available in Abbotsford Duty Free Shop. Full assortments are available at Importations Guay Ltée in Quebec.

For the time being, Stila is ACI brand’s top priority, followed by China Glaze, mainly because of the growth opportunity it provides. “One of the things that women always forget when traveling is nail polish,” says Kumar. “We think this is a great opportunity to provide color and excitement.”

ACI Brands Inc.

CREAM OF THE CROPWith a strong focus on its beauty offerings, ACI Brands is securing a place for itself in the Canadian duty free market

by MELISSA SILVA

At this year’s FDFA show, ACI Brands will display a new lineup of Kenneth Cole business bags for men and women

ACI Brands will display Under Armour eyewear at the FDFA show

The new Stila CC Stick is a color correcting stick featuring a green core that allows you to color match your skin, while also offering color correcting and skincare properties


At this year’s TFWA WE in Cannes, Americas Duty Free had the opportunity to sit down with Business Development Manager –

Travel Retail at Constellation Brands Amanda Dolotowicz to discuss new developments with the company’s world-famous brand; Inniskillin Icewine. Notably, the company was showcas-ing the newly developed Inniskillin Reserve Icewine range at the show for the first time.

Dolotowicz tells us that the response has been very positive: “TFWA WE was the first time we showcased the range and we’re pleased to say that our operator partners are very

excited about it,” she says. The Inniskillin Reserve Icewine

range was developed specifically for travel retail and will be avail-able for listings at airports world-wide, focusing on the following key varietals: Oak Aged Vidal, Riesling and Cabernet Franc.

Not only are these limited wines exclusive to global travel retail, but the Reserve Icewines are being launched with a new and dynamic look as well.

The new Inniskillin Reserve Icewine package pays tribute to the historical designs of the very first wine label from 1974. While the new label is inspired from key legacy elements of the labels from the late ‘70s and early ‘80s, it inte-grates Inniskillin’s strong and respected status in the wine world.

The Inniskillin logo remains arched as it has always been historically but is simplified to make it more contemporary and strengthen the brand communication on the label. The vine and grape icon, or “jewel,” has a Celtic feel representing Inniskillin’s Irish heritage.

The entwined curves resemble the com-plex, gnarly components of a grape vine as it develops and matures—another reflection of the deep roots to Inniskillin’s history and the growing of fine wine grapes.

Using a proprietary process, the icon is applied directly to the bottle using three pre-cious metals—24 Carat Gold, Platinum and Bronze—and is coated with a diamond grade finish to ensure durability.

The elegantly designed wraparound label combines subtle textures and richness, which were inspired by the texture and quality of Inniskillin’s wines.

The gift box opens in display style and maintains the original color palette of metal-lic pearl, silver, gold and ruby, but is further embellished with a fully embossed metal-ized icon and finished with a tamper proof gold band.

A very special additionDolotowicz tells us that a brand new Sparkling Cabernet Franc varietal will be available at selected retailers initially, with a broader rollout mid 2014. This wine was inspired by Heather Cho, Managing Vice President of Korean Air. “We greatly respect Ms. Heather Cho and her team at Korean Airlines,” Doloto-wicz says. “She’s a real innovator who, in turn, has inspired us to innovate in the creation of this new and exciting offering.”

Inniskillin’s latest creation is as unique as Constellation Brands’ relationship with Cho; in fact, this is the first Sparkling Cabernet Franc Icewine ever produced anywhere in the world, and the expectation is that it will be eagerly accepted by Icewine lovers through-out the world as a permanent addition to the Reserve Range.

Strong in the AmericasInniskillin Icewine is, of course, a very popular product in worldwide travel retail, but Doloto-wicz tells us that Constellation Brands’ entire portfolio—which also includes table wines such as Robert Mondavi, Kim Crawford and Ruffino—has also been gaining considerable traction in South America over the last three or four months. Constellation Brands has secured airport listings in Brazil, Uruguay and Paraguay, and Dolotowicz says that these listings have effectively increased the entire portfolio’s presence in the region.

“We’ve gone from two or three SKUs—generally the Icewines—to fifteen or twenty SKUs in some cases,” she explains. “That’s a big move from a wine category perspec-tive and really speaks to the potential of our entire portfolio.”

Constellation Brands

Committed

Inniskillin rolls out its global travel retail exclusive Inniskillin Reserve Icewine range and introduces a very special Sparkling Cabernet Franc varietal

Cabernet Franc and Oak Aged Vidal, two varietals from Inniskillin’s Reserve Icewine range, developed specifically for travel retail

A brand new Sparkling Cabernet Franc varietal will be available from Inniskillin at selected retailers

initially, with a broader roll-out mid 2014

channel

“TFWA WE was the first time we showcased the Inniskillin Reserve Icewine range and we’re pleased to say that our operator partners are very excited about it,”

AMANDA DOLOTOWICZ, BUSINESS DEVELOPMENT MANAGER – TRAVEL RETAIL, CONSTELLATION BRANDS

to the

by RYAN WHITE

The Duty Free Show of the Americas is hosted by the International Association of Airport Duty Free Stores, representing the duty free industry for more than 45 years.

Join us for the business-to-business show for the duty free industry.

The Duty Free Show of the Americas offers everything you need to conduct business, all under one roof. See what attendees are saying:

Visit www.IAADFS.org/DutyFreeShow for more information and registration.

March 9–12, 2014Orlando World Center Marriott

Orlando, Florida, USA

2014DutyFree Show of the Americas

International Associationof Airport Duty Free Stores

“ I was pleased that even more people were present this year than the last two years. We will definitely be back next year. ”

“ Excellent gathering of the industry in the Americas. ”

“ I was so busy with my clients. I saw 100% of my clients and the show was very productive and a great ROI. ”


Baileys, the brand that brought about an innovation in Irish whis-key with cream, recently launched their newest innovation in travel

retail outlets: Baileys Chocolat Luxe.Baileys Chocolat Luxe heralds a world-

class innovation in chocolate and is now available in select duty free outlets worldwide for travelers to bring home a taste of luxury. Travel retail is among the first markets globally to launch Baileys Chocolat Luxe, leading the way in bringing this world-class fusion of luxurious Bel-gian chocolate, Irish whiskey and cream to shoppers.

The blend has taken over three years to craft, resulting in a rich molten choco-late drink experience that brings together never-before paired favorites into a single decadent treat. Developed to give the same multi-sensory experience as that of eating a piece of chocolate, Bai-leys Chocolat Luxe delivers an authentic chocolate experience—from the “snap” of the first piece right through to the rich cocoa aftertaste.

A significant development in drinks alchemy, Baileys Chocolat Luxe combines luxurious ingredients which include Mada-

Liquor News

gascan vanilla and over 30 grams of real Belgian chocolate per bottle, marrying the rich, creamy caramel tones of a traditional Baileys with the smooth taste of the high-est quality chocolate.

Baileys was the world’s first Irish Cream Liqueur and is the top seller of liqueurs globally. Baileys Chocolat Luxe was cre-ated by Anthony Wilson, son of the creator of Baileys Original Irish Cream. Anthony traveled to over three continents to per-sonally taste the world’s finest choco-late—200 varieties in all. Together with his team, he developed over 800 recipes in his pursuit of the chocolate lover’s ticket to paradise and worked tirelessly to crack the recipe to create a fusion that would see chocolate perfectly mixed with Baileys Original Irish Cream.

Steve White, Global Marketing Director of Diageo Global Travel and Middle East, says: “The Diageo GTME team is thrilled to be among the first to bring Baileys Chocolat Luxe to shoppers, highlighting global travel’s importance in launching new products to consumers.

“We constantly seek to provide travel retail customers and shoppers with new and different drinking experiences. Thanks

A significant development in drinks alchemy, Baileys Chocolat Luxe combines luxurious ingredients

which include Madagascan vanilla and over 30 grams of real

Belgian chocolate per bottle

to the brilliant work of Anthony Wilson and his team, we are delighted to offer them this luxurious, world-class blend. From today, travelers can pick up Bai-leys Chocolat Luxe from selected airports worldwide; and with ingredients sourced from over three continents, it is a truly fit-ting and unique travel offering.”

“Baileys was the first liqueur to fuse Irish whiskey and cream, and now Bai-leys Chocolat Luxe heralds a ground-breaking innovation in chocolate,” com-ments Anthony Wilson. “For the first time, real Belgian chocolate has been fused with alcohol in a way that delivers the multi-sensory experience of chocolate in a glass. I am proud to be part of the team who brought a piece of chocolate paradise to world travelers for the very first time.”

Baileys Chocolat Luxe has an RRP of £15.00/16.00/$22.50 for 50cl and will be available in selected travel retail stores globally from today.

Diageo GTME launches Baileys Chocolat Luxe in travel retail

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Absolut is challenging the status quo with the new Absolut Amber by taking the essence of Absolut and adding a rich, complex character from gently roasted oak wood. Absolut Amber is a transformative new product that breaks down the traditional boundaries of white and dark spirits.

Designed to challenge the convention of any occasion, from a relaxing evening with friends to the warm-up act for a busy night, Absolut Amber elevates an ordinary social moment into something extraordinary.

Created by a unique method of exposing Absolut to a variety of different oak types to produce oak barrel-aged spirits, Absolut Amber is blended with oak macerated spirits. Absolut Amber has a natural amber color with a mellow and oaky taste while retaining the quality and smoothness of its original form. The result is an exceptional drinking experi-ence unlike any other.

Liquor News

The key factor to the character of Abso-lut Amber is the carefully selected blend of Swedish, American and Bourbon oak spirits combined with oak macerated spirits.

“While experimenting with resting Absolut in oak, we explored various methods of barrel-aging, types of oak and ways to use macera-tions before landing on the perfect blend,” says Master Blender Per Hermansson.

Absolut Amber combines the smoothness of the vodka with the rich, complex character of dark spirits. The variant offers up a rich aroma of caramel, vanilla and roasted oak, followed by a touch of smoke.

Absolut Amber is currently available in Panama travel retail and select on-premise venues. The variant will also be available in North American travel retail from September 1 at JFK, Miami and Dallas International Air-ports with other markets to be confirmed in the coming months.

Absolut takes on a deeper character with Absolut Amber

El Dorado 8 YO rum has surprised its competitors by winning the Best Rum trophy at the 2013 International Wine and Spirits Competition (IWSC). In addition to the above wine, El Dorado Special Reserve 15 YO and El Dorado 12 YO both won Gold Outstanding trophies. El Dorado 21 YO won a Gold trophy while El Dorado 5 YO and 3 YO won Silver Outstanding honors.

In judging El Dorado 8 YO, the judges described the product as “amber gold” with “very complex aromas combining orange pekoe tea, roasting nuts—Brazil, walnut and pecan—and smooth caramel.” The judges went on to note that “this complexity rolls around in the mouth achieving a wonderful balance of aged richness, and a superb integrated sweet/bitter balance that is outstanding. The finish is long and evolves beautifully—a fan-tastic product.”

El Dorado 15 YO, the flagship brand of Demerara Distillers Ltd., also boasts the distinction of being the only rum ever to have won the Best Rum in the World title a record eight times since 1998 at IWSC. The rum has also won the IWSC Gold Medal a remarkable 12 times between 1998 and 2013.

“Demerara Distillers has always been committed to produc-ing the finest quality products for its customers the world over,” says Komal Samaroo, Vice President of International Marketing at Demerara Distillers Ltd. “The fact that its rums have gained sustained international acclaim is testimony to the company’s commitment to quality and excellence.”

El Dorado 15 YO (pictured) is the only rum ever to have won the Best Rum in the World title a record eight times at IWSC since 1998, but it was El Dorado 8 YO that won the Best Rum trophy at this year’s IWSC

El Dorado rums sweep the IWSC

Absolut Amber combines the smoothness of the vodka with the rich, complex character of dark spirits

Liquor News


Haleybrooke International launches Russian Diamond Vodka in travel retailHaleybrooke International has announced the launch of Russian Diamond Vodka in travel retail. The brand is produced by Russian Spirits Group, based in Moscow.

“Russian Diamond Vodka is produced in the emblematic region of vodka’s historic birthplace by taking the crystal clear, soft deep-well waters of Mytishchi springs, used for vodka manufacturing since the Russia of the Tsars,” says Patrick Nilson, President of Haleybrooke International.

Indeed, drop by drop Russian Dia-mond Vodka goes through the most complex filtering system ever known for vodka production. Like a diamond which has 57 facets, Russian Diamond Vodka has an astonishing 57 purifica-tion stages. Speaking to the quality of the liquid, Nilson notes that Russian Diamond Vodka was previously entered in the San Francisco World Spirits Com-petition and won a coveted Gold Medal.

Nilson also tells us that in addition to the vodka itself, the bottle is per-fect for travel retail: “We think that consumers seeing the brand for the first time will be drawn in by the packag-ing,” he explains. “Russian Diamond Vodka comes in a tall, beautiful bottle with diamond-like facets on the shoulders that reflect the unique purity of the vodka, while the premium glass stopper symbolizes the prestige and noblesse of the product. Finally, the thick pedestal bottom will keep a refrigerated bottle chilled longer, and the label is not paper—it is a velvet fabric with a metal logotype.”

Despite vodka being a highly saturated subcategory, Nilson tells us that the shelf standout of Russian Diamond Vodka is sure to turn heads, while the liquid in the bottle will quickly establish the brand as a must-have for travelling consumers.

Like a diamond which has 57 facets, Russian Diamond Vodka has an astonishing 57 purification stages


Liquor News

ALFA Brands has announced a new distribu-tion partnership with Pondview Estate Winery just ahead of this year’s FDFA tradeshow and convention in Niagara Falls

“We are a 75-acre boutique winery in the heart of Niagara Wine Country, producing pre-mium wines from our well-established vines planted in the mid-70s,” says Lou Puglisi, Owner of Pondview. “In 2008 we were voted the ‘Best in Ontario.’”

Pondview’s three Icewines—Cabernet Franc, Cabernet Sauvignon and Vidal—are all gold medal winners. The 2010 Vidal Ice-wine won Gold at the prestigious 2012 Wine Access Competition, as well as the Best Des-sert Wine of The Year. The winery’s 2011 Vidal Icewine won Gold at the 2013 National Wine Awards of Canada, making it a Gold winner two years in a row. Indeed, Pondview is the recipient of numerous national and interna-tional awards—44 medals to date.

“Our white wines are fresh and crisp and our reds are big, bold and intense,” contin-ues Puglisi. “We strive to produce affordable quality Icewines and table wines, which are a pleasure to enjoy and share. Our philosophy is that great wine is a result of harmony between earth and vine. We are very excited to be part-nering with ALFA Brands in the distribution of our Icewines and table wines to the duty free/travel retail community.”

“Pondview’s wines are undoubtedly some of the best in Canada and certainly their Icewines have the qualifications to compete on a global level,” adds Franco Gabriele, Owner of ALFA Brands. “Following years of dialogue, we are very proud and honored to be in a partnership with Lou in representing Pondview’s wines in the duty free/travel retail markets of North America.”

In related news, ALFA Brands has announced a number of news listings for its wine & spirits brands in travel retail. Consum-ers can now find Piedmont Distillers’ Midnight Moon Moonshine at Pac Can Duty Free Store in Blaine, WA; at various DFA stores along the Canadian border; at AMMEX in Detroit; at SMT Duty Free in Puerto Rico; and in all Ontario duty free border stores, where the brand has been enjoying incredible success, says Gabriele.

In addition to the above, Pillitteri Estates Winery wines are now available for onboard sale on selected airlines through DFASS and on Air Canada flights. VICE Vodka Icewine has also been listed by DFASS and onboard Air Canada flights, as well as in the Ontario duty free border stores of Johnstown, Thousand

Pondview’s three Icewines—Cabernet Franc, Cabernet Sauvignon and Vidal—are all gold medal

winners; in fact, Pondview is the recipient of numerous national and international awards—44 to date

Islands and Peninsula, and at Quebec duty free border stores Importations Guay and Boutique Hors Taxes De L’est. Most recently, Cocoa Vino Chocolate Wines, available in Chocolate, Cherry Royale and Mint Chocolate varieties, have seen successful introductions along the Canadian border with new listings.

ALFA Brands partners with Pondview Estate Winery

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ALFA Brands partners with Pondview Estate Winery


Distribution GVA sees strong sales in first nine months, plans for new launches at FDFADistribution GVA will be present at this year’s FDFA show with a stable of premium and mass market cigar brands designed to suit any taste. Luc Dumulong, Vice President of Sales and Marketing at Distribution GVA, tells Americas Duty Free that representatives from a number of cigar companies, including Davidoff, JC Newman and Fuente, will also be on hand to discuss recent launches. In addition to the above, Distribution GVA will be launching La Perla del Mar premium cigars as well as Honey T Original at FDFA.

Dumulong says that in terms of sales, the company’s year so far has been “productive and positive,” with growth in the double digits. Of particular note, he says, is a shift away from Cuban-made cigars.

“To some extent duty free is reflecting what we’re seeing the domestic market,” he explains. “We have retailers whose cigar mix contained about 60 to 65% Cuban cigars, but in the last five years or so we’ve seen almost a complete reversal.”

A related trend is purchasing in smaller quantities, he explains. Consumers are now purchasing 10 and 15 packs, and given the lower out-of-pocket expense, they’re more willing than ever to experiment with new brands and cigars from the Dominican Republic, Nicaragua or Honduras.

In terms of popular brands in Canadian airports, Dumulong tells us that Davidoff is still very much the workhorse, with sales of the brand representing over 50% of cigar sales in the Canadian duty free channel. On the other end of the spectrum, bundles are also becoming more popular, with brands like Quorum leading the way in land border stores.

A big topic of discussion at the Distribution GVA suite in Niagara Falls this year will be a partnership that the company has with Davidoff aimed at getting more bespoke humidors in Canadian land border duty free locations. “These eye-popping white humidors are made to order based on the spatial requirements of each store and, as with anything that has the Dav-idoff name on it, you can be sure that they’re very high-end and stylish,” Dumulong explains.

“We’d like to thank all of our valued customers in the Canadian duty free market,” Dumu-long concluded. “Business is strong at the border and we’re looking forward to continuing to increase sales with a number of innovative initiatives that will be coming online in the months to follow.”

Tobacco News

Imperial Tobacco reveals new global design for Davidoff cigarettesImperial Tobacco revealed the new global design for Davidoff cigarettes at TFWA World Exhibition this year. Offering smok-ers “a touch of luxury for everyday,” the pack and carton rejuvenation retains the key iconic design elements of Davidoff while adding sophisticated design elements and detail that takes the brand to a new luxury level.

“The success of Davidoff globally is in part due to the continuous advancement of the pack design; it’s a brand which does not sit still,” says Nicole Peiler, Trade Mar-keting & Marketing Operations Manager Global Duty Free at Imperial Tobacco. “This latest rejuvenation will fascinate shoppers with its new haptic experience and design detail, which clearly meet traveler’s needs for luxurious design, premium quality and pleasurable experience.”

The new design builds on the heritage of the brand, incorporating both the ZD icon on the front as a silver hallmark and the ZD signature on the reverse as a reassur-ance of a sophisticated smoking moment. Additional text elements such as “Geneva 1926” reinforce the heritage of the line. Including both the Davidoff Premium and Slims lines, the packs themselves combine smooth and engraved textures to create a soft, silky haptic touch that is quite unique. For travel retail, the carton interior develops the heritage story further, prolonging the consumer journey, and revealing more about the history of the Davidoff brand.

The Davidoff design rejuvenation retains the key iconic elements of

the brand while adding sophisticated design elements and detail that takes

the brand to a new luxury level

La Perla del Mar and Honey T Cherry from Distribution GVA

Honey T Cherry; the brand is also available in Original (launched at this year’s FDFA), Wine, Black Gold, Rum and Menthol varieties

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Documents

Americas Duty Free & Travel Retailing (November 2013 FDFA Vol. 23 No. 5)