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NEWSNorth AmericaFDFA launches new national marketing campaign & websiteNew York JFK: T4 & Delta Airlines begin $1.2 billion expansion/enhancementBAA USA fights back against critical union reportSouth America:The Brazilians are back; and spending big throughout the region.Caribbean:Jamaica’s Tourism Minister discusses latest duty free break-throughRegion’s Tourist Officials ready for Cuba’s opening to U.S. tourismYellow House expands flagship store in Curaçao

BIJOUX TERNER steps out from the wall

Supplier Features:One-on-One with Swarovski’s Gonzalo Almada and Nelson Rivera,BPI’s Gerard Pichon-Varin, andParfums Narciso Rodriguez’ Christophe Fabrega, plus more Diageo aims to transform the TRenvironment in the Americas

Patrón’s XO Cafegrew by triple-digitsin travel retail in 2010, and helped drivecompanysales to new heights

Plus Products-People-PlacesThe Insider View

Patrón’s XO Cafegrew by triple-digits

INSIDE INSIDER

Special IssueIAADFS

Duty Free Show of the Americas

March/April2011

Swarovski is rolling out its Crystal Forest concept, a revolutionary new look shimmering with crystals and light, to select boutiques worldwide, like this one in Santa Fe Mall, Mexico. Read the full story beginning on page 56.

Will latest oil crisis halt 2010’s strong recovery in Americas travel retail business?

The fallout from the explosive situation in Libya – which forced the North African nation to cut its oil production in half and pushed world prices as high as $120 a barrel at the end of February – is already clouding the rosy predictions of recovery that fueled a robust 2010 in travel retail markets in the Americas.

Just days after the turmoil erupted, on March 3, aviation trade group IATA reacted to the soaring oil prices and downgraded its airline industry outlook for 2011 to $8.6bn from the $9.1bn it had forecast in December. Airlines responded immediately, hiking fares and rolling out fuel surcharges, particularly for international travel. As TMI goes to press, JetBlue—a major carrier to the Caribbean – announced it was implementing a $45 one-way surcharge in select Caribbean markets, which could have dire repercussions on the region’s fledging recovery.

Prior to the latest crisis, tourism numbers were rebounding in most of the Caribbean: 21 destinations recorded increases over 2009 figures, says the Caribbean Tourism Organization, with overall stayover figures matching the peak levels of 2008.

And South America – driven by, but not limited to, a booming Brazil – turned in an excellent year. Passenger traffic –both domestic and international – grew over 20% in Brazilian airports, helping Dufry do Brasil post a 44% increase in sales for the first nine months of 2010. Sales at InterBaires in Argentina were up by 45% and at Duty Free

Uruguay’s stores in Montevideo airport by more than 50%.

Results from border operators London Supply and Mannah were just as impressive, up by high double-digits as well. The region, which was only marginally affected by the international crisis in 2009, seems unstoppable.

Indeed, the prevailing feeling in the Americas has been one of optimism, albeit tinged with caution. Suppliers in every category report that they enjoyed strong sales over the past year, and although not all are up to the 2008 level, quite a few categories have surpassed those records.

The industry has worked hard to achieve this rebound, however, developing creative, innovative animations and promotions to engage the consumer, and turn him into a buyer. Many companies

– as this issue highlights – have literally come off the walls to interact with customers in the store and beyond, with Diageo and Bijoux Terner being just two of the examples we present within these pages.

And as for now, people are still traveling, the single most critical driver in the duty free and travel retail business. This issue of Travel Markets Insider examines what happened in 2010 in Canada, the U.S., the Caribbean and Latin America, and what plans the industry has for the months ahead, even as it prepares to adapt to whatever changes may result from the latest crisis.

All this and more, Inside Insider.

Lois Pasternak

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IAADFS/MHA Issue March/April 2011 10

TABLE OF CONTENTSReta i l and News Features

COVER COMMENTARY Will latest oil crisis halt 2010’s strongrecovery in Americas travel retail business?

Airport/Airline/Tourism Numbers Page 12

Breaking News: Charters to Cuba; Air pax fees Page 14

TFWA prepares for next Asia Show Page 16

IAADFS: Advocating for the internat’l airport travel retail business Page 18

Canada: National marketing campaign; By the Numbers; Highlights from the Big 25; more Page 20

North America: $1.2bn expansion at JFK T4 underway for Delta’s relocation Page 26

T4-Delta expansion ushers in new eraof retail development for JFKIAT Page 28

BAA USA: on the defensive against “flawed” critical union study Page 32

South America Brazilian boom benefits all: Dufry do Brasil, London Supply, Mannah Duty Free, InterBaires,Duty Free Uruguay Page 38

Exclusive Interview: Jamaica’s Minister of Tourism discusses new duty free legislation, arrivals shopping and cruise portsas ways to boost visitors Page 44

Cuba: How Caribbean Tourism Officials are preparing for U.S. opening Page 48

Caribbean overview: region mostly bounces back in 2010, but will it last? Page 50

SMT expands in PR airport Page 53

Special Features: Actium’s 3-prong strategy pays off Page 54

Crystal Forest: A complete makeover for select Swarovski Boutiques Page 56

Bijoux Terner steps out and moves upwards Page 58

Yellow House renovates its flagship Page 60

American Designer Narciso Rodriguezreveals Light, Purity and a touch of musc& One on One with BPI’s Gerard Pichon-Varin Page 66

BEAUTY Page 68

SPIRITS - Where the Action isacross the Americas Page 96

DIAGEO: transforming the TRenvironment in the Americas Page 102

William Grant & Sons: focus onthe Americas with expanded teamand aggressive brand activities Page 108

Confectionery, Gifts, Accessories, Electronics Page 134

SPECIAL TRIBUTE:Givenchy’s Patti Grant retires & Her friends wish her well Page 144

People News Page 163

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2011 global traffic off to a strong start But skyrocketing oil prices lead IATA to downgrade airline profit outlook by nearly 50% as ACI

warns that airports must prepare for a doubling of traffic within the next 20 years.

Both major aviation trade organizations, ACI and IATA – the International Air Transport Association – reported strong starts to the new year. But within days of issuing their buoyant reports, soaring oil prices threatened the optimistic forecasts and forced a reassessment of the growth and profit estimates.

The International Air Transport Association (IATA), on Feb. 28, announced international scheduled passenger traffic for January was up — 8.2% on January 2010 and 2.6% on December – pointing to a positive beginning to the year.

But by March 3, reacting to the instability in the Middle East that sent oil prices soaring, IATA downgraded its airline industry outlook for 2011 to $8.6 billion from the $9.1 billion it had forecast in December 2010.

“Our current forecast is based on an average annual oil price of $84 per barrel (Brent). Today the price is over $100. For each dollar it increases, the industry is challenged to recover $1.6 billion in additional costs. With $598 billion in revenues, $9.1 billion in profits and a profit margin of just 1.5%, even with good news on traffic 2011 is starting out as a very challenging year for airlines,” said Giovanni Bisignani, IATA’s Director General and CEO.

IATA raised its 2011 average oil price assumption to $96 per barrel of Brent crude (up from $84 in December), which it says is in line with market forecasts. Including the impact of fuel hedging, which is roughly 50% of expected consumption, the industry fuel bill will increase by $10 billion to a total of $166 billion. Compared to levels in 2010, oil prices are now expected to be 20% higher in 2011. Fuel is now estimated to represent 29% of total operating costs (upfrom 26% in 2010).

On the positive side, IATA says that an increase in global GDP forecasts to 3.1% (from 2.6% in December) and a rebound in premium traffic, bodes well for continuing strong demand for air transport.

As a result, IATA revised its passenger demand growth forecast to 5.6% (from 5.2%).

For the region, North American carriers recorded an 8.7% yoy growth in demand and a 10.0% increase in capacity in January. International passenger traffic carried by North American airlines has now recovered to 2% above its pre-recession peak of early 2008.

Latin American carriers recorded an 11.0% growth in demand and 12.4% growth in capacity. Traffic volumes in January were some 16% higher than the pre-recession peak in early 2008.

At ACI, member airports reported total global passenger traffic growth of 7.1% in January 2011, with strong support from the international market (+7.8%) as well as good performance in the domestic sector (+6.5%). Europe, the largest international market, registered 8.3% growth compared to January 2010 and Asia Pacific, the second largest, rose by 9%. Both had strong domestic travel as well, with Asia Pacific up by 11.2% and Europe by 6.6%.

Latin America and Africa saw balanced growth in both markets, but with strongest expansion in domestic traffic (Africa +7.6%; Latin America +9.7%). The Middle East had total traffic growth of 8.6%.

North America, the largest domestic market worldwide rose by 1.7%

Angela Gittens, Director General of ACI World, speaking to over 200 delegates at ACI’s annual Airport Economics

& Finance Conference in London on March 1, emphasized the implications of sustained traffic development for airports worldwide. Looking at the long-term picture, she said:

“Analysis of future traffic expectations and trends further helps us to plan for twenty years down the road. The ACI forecast indicates an average growth of 4.1% per year for airports globally, with some divergent trends worldwide. By 2029 traffic will more than double, passing the magical 10 billion passengers a year perhaps as early as 2027.

“International traffic will be a key driver for expansion, even though domestic traffic with its slower growth rate may stay on top,” said Gittens.

As for today, “Traffic growth is clearly on the rise,” she said, pointing out that emerging markets are buoyant, and that the mature markets are returning to real growth compared to the pre-crisis levels.

“Although all markets are not progressing at the same rate, the global imperative is clear: airports must prepare to handle twice as many passengers in just twenty years,” she says.

Editor/Publisher: Lois R. PasternakIn Memoriam: Paul A. PasternakDeputy Editor: Michael PasternakEditorial Contributors: Larry Luxner, Federica Tojo, Diana Albiol, Wendy Burch, Dori Busell, Lara Pasternak Production Coordinator & Designer: Chris Hetzer Design and Production: It’s About Time, Inc.Webmaster: Michael PasternakPrinting by The Printer’s Printer. Ft. Lauderdale, FloridaThis publication is a special supplement of Travel Markets Insider, published by Pasternak Communications, Inc., 9697 North Springs Way, Coral Springs, FL. 33076 USA. www.travelmarketsinsider.netE-mail: [email protected], [email protected] (954) 344-3803 Fax (954) 346-2180 Travel Markets Insider is a weekly newsletter distributed 50 times a year via e-mail, on a subscription basis only. The annual subscription is US$200. Printed in the USA. All rights reserved.© 2011 by Pasternak Communications, Inc.

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U.S. approves 9 new airports for flights to CubaThe skyways between Cuba and

the United States opened a little more this month, when on March 8 and 9 the Department of Homeland Security, U.S. Customs and Border Protection (CBP) announced that eight additional airports had been approved and authorized to provide passenger air service between the U.S. and Cuba.

Specifically, the CBP has given the eight airports — Baltimore, Chicago’s O’Hare, Dallas/Fort Worth, New Orleans, Pittsburgh, Tampa, Atlanta and San Juan, Puerto Rico— permission to schedule charter flights to and from Cuba. Previously, flights had only been permitted from Los Angeles, Miami and New York.

The flights are the result of modified travel restrictions approved recently by the Obama Administration. These modifications allow “purposeful” travel to Cuba. Passengers must have close relatives in Cuba or must be involved in medical and agriculture business sectors; or traveling for education and religious activities.

The ruling could prove to be a bonanza for Tampa International Airport, who reports that three licensed charter operators have already formally indicated

their intention to provide service to Cuba from Tampa: Air MarBrisa, Island Travel & Tours, Ltd., and ABC Charter. Tampa expects to offer flights by summer or early fall.

The State of Florida, by U.S. Census statistics, has the largest Cuban-American population in the nation and the Tampa Bay service area is ranked second in the nation after the Miami-Dade County service area.

“I wish to thank the President and his administration for allowing more points of entry into Cuba. The flights of course will assist economic development for both sides. But more importantly, the new policies will better enable the tens of thousands of Cuban Americans in our City to reunite with their families whom they may not have seen for decades,” stated Steven Burton, Vice Chairman, Tampa International Airport in a statement released on March 7.

But flights to Cuba may not prove to be such a boon for most of the other airports on the new approved list.

Chicago Department of Aviation (CDA) Commissioner Rosemarie S. Andolino, for example, welcomed the opportunity to offer flights to Cuba, but noted that an airline would have to express

interest and ability to provide a charter flight service.

Aviation Forecasting and consulting agency, Boyd Group International, cautions that the enthusiastic reception surrounding the announcement may not translate into significant new air service.

“The excitement is not based on solidtraffic potential,” said a statement from the Boyd Group. “The hard reality is that for most of these airports, the new regulations will generate mainly a few charters. That’s all. Most of the qualified traffic for such flights is generated in Florida. This is the reason that LAX and New York – cities with Cuba authority —have generated very low numbers of flights over the years. The hard data do not point to any travel bonanza under current and forecast conditions,” stressed Boyd, which has prepared an independent study to forecastand analyze the potential for U.S.-Cuba traffic. More information can be found at the Boyd Group International website.

Note: Ft. Lauderdale-Hollywood International Airport was added to the approved list on March 10, bringing the total number of airports authorized to fly charter passengers to Cuba to nine.

U.S. Proposes hike in Air Passenger Fee from Canada, Mexico and the Caribbean; CAC warns of border “leakage”

The Obama budget proposes a $5.50 per passenger “Passenger Inspection Fee” be levied on travelers from Canada, Mexico and the Caribbean into the U.S. The fee would not be levied on automobile travelers, which the Canadian Airports Council warns would contribute to increased “leakage” of Canadian travelers driving over the border into the United States to take a trip using less expensive airline tickets for foreign travel.

The new fee would be in addition to the U.S. Agriculture Fee of $4.95, a U.S. Transportation Tax of $16.14 and a U.S. Immigration User Fee of $6.93, reports CAC.

The trade industry group reported in its February newsletter that 21% of Canada’s leisure travelers said they traveled by car to a United States airport

in 2010 to take a trip using less expensive airline tickets purchased for U.S. or foreign travel, and an additional 11% said although they had not done so in the past, they might travel to the U.S. for cheaper travel in 2011. This is up from 18% from 2010.

“This has the potential for almost one third of Canadian travelers spending money on foreign airline tickets and taking flights outside of Canada. The dollar at par and high costs for Canadian airports and travel mean that Canadian air carriers are at a distinct disadvantage and cannot offer the prices to match those in the United States,” said Tony Pollard, president of the Hotel Association of Canada, which conducted the annual study. “This growing trend has serious consequences for the Canadian travel industry and needs to be addressed

by the reduction of airport fees, travel security costs and airline surcharges.”

Eighty three percent of leisure travelers said they will be traveling in 2011. This is up from 78% in 2010. Only 76% of business travelers said they will be traveling in 2011; a figure comparable with 2010. In Ontario business travel is forecast to be up 5% year over year however.

The survey of Canadian travelers is the seventh annual Canadian Travel Intention study undertaken by the Hotel Association of Canada. This survey was fielded by TSN Canadian Facts and defines a traveler as someone who will stay at least one night in a hotel, motel or resort. The online survey was conducted in January 2011 among 1,627 “likely travelers” with a margin of error of +/- 2.4%.

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TFWA appoints Cécile Lamotte as marketing director

TFWA has announced the appointment of Cécile Lamotte as Marketing Director with full responsibility for all marketing and communication activities of the Association, effective immediately.

Lamotte will be based in the TFWA office in Paris.

In addition to her marketing responsibilities, she will oversee the business networking and social events at TFWA World Exhibition and TFWA Asia Pacific & GATE ONE2ONE.

Lamotte has a solid background in marketing and communications with 15 years experience in various roles including events management.

Erik Juul-Mortensen, TFWA president comments: “We are delighted to welcome Cécile who brings considerable

Luxury experts to address TFWA Asia Pacific & GATE ONE2ONE Conference in Singapore in May

Four topical workshops and a working lunch will follow the plenary session at the TFWA Asia Pacific & GATE ONE2ONE Conference, reports TFWA. At the first session, delegates will have a choice of attending a meeting on India or Japan.

In Workshop A, IndiaInside Out, Kapil Kaul, CEO CAPA India, Dilip Kapur, President Hidesign, Deepak Talwar, Chairman IDFS Tradings and Rolf Blaser, Country Head of The Nuance Group India will discuss airport retail in India and the prospects for all stakeholders in the short and medium term.

Workshop B Japan Inside Out* will aim to provide a deeper understanding of this historic market for the duty free and travel retail industry in the light of developments in the aviation sector and changes in consumer behavior. The panel will consist of Akito Abukawa, Chairman, Duty Free Shops Association of Japan, Harubumi Kobori, Senior Executive Vice President & Representative Director, Narita International Airport Corporation, Masato Takamatsu, President, Japan Tourism Marketing, Ming Lee Foo, Vice President Consumer and Trade Marketing Worldwide Duty Free, JTI. *(Ed. Note: This program was announced prior to the devastating 8.9 magnitude earthquake and Tsunami that struck Japan on March 11.)

Online pre-registration for the TFWA Asia Pacific & GATE ONE2ONE Conference and Trade Show taking place on May 16-19 at the Singapore Suntec Center is now open at www.tfwa.com.

Christian Blanckaert, President of Petit Bateau and former Vice President of Hermés International, will make the keynote address at the May 16th Conference.

Under the overall conference theme of AsiaPacific Inside Out, he will discuss the business of luxury and offer insights to the success of luxury brands in the region.

TFWA President Erik Juul-Mortensen will open the conference with an overview of the duty free and travel retail industry in Asia Pacific today, analyzing recent performance and summarizing the opportunities and challenges ahead.

Retail industry thought-leader Rohit Talwar, CEO of Fast Future, will explore key opportunities and challenges facing the duty free sector in Asia Pacific markets over the next decade. Talwar will address global trends shaping the economic and consumer landscape, the pan-Asian consumer outlook, innovation and technology, and suggest practical steps for duty free and travel retail businesses facing changing circumstances.

Rounding out the program, Sunil Tuli, President, Asia Pacific Travel Retail Association, will discuss the challenges facing the industry in the Asia Pacific region and call for support for APTRA’s efforts to address them.

TFWA has announced that the Diamond sponsor of the 2011 TFWA Asia Pacific &

expertise and experience to the role. Cécile joins TFWA at a very exciting time as the Association is in the middle of its strategy review. I am confident that she will also make a significant contribution to this process to the benefit of our members and the industry as a whole.”

Workshops address potential of emerging marketsThe TFWA Industry

Associations Working Lunch will highlight challenges faced by the industry and invite discussion of collaborative solutions. The session will include headlines from the new APTRA Consumer Index research into consumer behavior which is being produced in partnership with m1nd-set exclusively for APTRA members.

Workshop C, ChinaInside Out, led by Christian Blanckaert, President Petit Bateau, Paul Husband, Managing Director, Husband Retail Consulting and Charles Chen, Vice President China

Duty Free Group, will explore the growth of luxury brands in the flourishing Chinese market and the opportunities in China’s duty free and travel retail market.

In Workshop D Partnerships in practice: enough talk!, Emmanuel de Place, COO, Lagardere Services Asia Pacific, Patrick Bouchard, Travel Retail General Manager, PUIG, Jay Woo, General Manager Travel Retail Asia Pacific, GTME Diageo and Rohit Talwar, CEO Fast Future will provide some concrete examples of how airports, retailers and suppliers are collaborating.

GATE ONE2ONE Conference is Qatar Duty Free, the Platinum sponsor is Ajmal and other sponsors are Ferrero and Perfetti van Melle.

Cécile Lamotte can be contacted by email [email protected].

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Even as the International Association of Airport Duty Free Stores is preparing for the Duty Free Show of the Americas, one of the most important events on the duty free calendar in the Western Hemisphere, the organization keeps on with its behind the scenes work representing and advocating for the duty free industry on critical issues around the world.

Four main issues are key this year for the Washington-based trade association: tobacco, LAGs, interbank credit card fees, and customs documentation.

The effort of the World Health Organization to ban the sale of tobacco products in duty free stores remains a high priority issue, says IAADFS Executive Director Michael Payne. “Our intent is to awaken the industry to the fact that WHO is going to be in their life,” he explains.

“The IAADFS is continuing, and will continue until it is resolved one way or the other, to focus on the restriction on the sale of tobacco products in duty free. This is driven in large part by the WHO, which is part of the Framework Convention,” he says.

“This issue is not settled and there are still restrictions that are part of the larger framework control. We are working with our members and countries where we have representation to convince the representatives at the framework convention that banning the sale of duty free tobacco doesn’t make sense: it has minimal impact and is incredibly disruptive to the whole system, and there

is no equity at all involved with that approach. We are spending a lot of time, energy and funds trying to deal with this issue and, on a parallel track, deal with a number of individual countries that are passing legislation or taking actions that are also potentially restrictive on the sale of products in duty free. We are involved whether we are explaining the facts to members to assure that they are complying with the regulations or to advocate a different approach, where it makes sense.

Security remains an issue, with the restrictions on carrying LAGs (liquids, aerosols and gels) still on the table.

“We continue to work with TSA and others to ameliorate these problems. We don’t have any real progress to announce as far as liquids coming in to the U.S. for transfer passengers. Passengers still cannot bring liquids or gels in to the U.S. from an external country and re-clear security with them. Under U.S. policy, you either repack it or you lose it, especially with bottles of alcohol. Other countries have different approaches.

“U.S. policy hasn’t really changed in that regard. You can fly out of the U.S. with your LAGs purchased in the airport duty free store in a tamper evident bag (STEB) in most places. This was implemented about a year and a half ago. Not every country allows/or requires the use of the tamper evident bags, but the majority of the EU countries certainly do, the U.S. does and Canada and some Asian countries too. There are some exceptions but by and large, they are being used.

“The TSA is still focused on a technology solution to this problem and is moving forward with installing the right machinery and technology to try and capture the threat from any sort of liquid or gel. TSA has made some progress but at this point I have not seen any signal that they are going to allow people just to bring through what they want.

“Maybe that day will come but it is not here yet. And if there are more budgetary restrictions, which I expect there will be, this could slow down that pace. It is expensive technology and I expect there will be some delay in putting it in every airport that wants it, and not just in the States. This will remain an area of focus.

“We have some other side issues that are a little less visible, but still impact our members. We are part of the effort to deal with interbank fees on credit cards which can hit our clients pretty hard. We belong to an organization in Washington called the Fair Payment Coalition that is trying to deal with bank fees.

“We also continue our advocacy efforts here in D.C. working with Customs to try and simplify the documentation that our duty free operators have to use. These are very nitty gritty issues that have to do with paper work requirements and documentation of moving goods from the bonded warehouse into the store and tracking systems. But they are requirements that cost operators money and can cause problems if not handled correctly.”

Michael L. Payne, Executive Director, IAADFS

Alberto C. Motta, Jr.President, IAADFS

Advocating for the international airport travel retail business

19 March/April 2011 IAADFS/MHA Issue

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Canada’s Frontier Duty Free Association has embarked on the first phase of its National Duty Free Marketing Campaign and the rebranding of its industry with the debut of a newly designed website and a new slogan “It’s better at the border.”

The FDFA is repositioning its brand to better reflect the needs of travelers, as well as the quality of the products Duty Free lists. This national effort began in February with the launch of the new website, followed by retail and publicity campaigns developed and administered by Beakbane

Retail Connections, a marketing firm out of Toronto, ON.

The objective of the national initiative is to ensure that FDFA is creating a more cohesive message regarding the industry to the public. It also hopes to create greater awareness to the public about the industry and the value of shopping at Canadian duty free stores, says Laurie Karson, FDFA executive director.

On February 8, the FDFA hosted a webinar for its 27 land border duty free participating stores. Beakbane walked the stores though the new brand focus, introduced a style guide to assist the stores in identifying how to use the brand focus in conjunction

with their own store marketing strategies, and unveiled the new National Duty Free website.

The new program is not intended to replace the land border stores’ current marketing efforts, but is designed to enhance all of the stores’ marketing efforts and increase the public’s understanding of what duty free is, where the stores are located, what kind of savings can one really expect at duty free stores, and how does one calculate duty free allowances. Each of the participating stores has its own store page/profile.

Over the next few months, the National Marketing Program will be taking on more initiatives including the translation of the National website, e-banner campaigns, a public relations campaign, a national supplier advertising roll-out, a social networking launch, and more.

The new website is www.dutyfreecanada.com. The FDFA will be changing its site address to www.fdfa.ca . In the upcoming months, the FDFA will be recreating its website to be more member centric.

The Canadian Airports Council in February expressed concern over the prospect of an additional U.S. government fee being imposed on passengers flying by air between Canada and the U.S.

The CAC was responding to a proposed “passenger inspection fee” of $5.50 per passenger outlined in the draft of the 2012 U.S. federal budget that has been sent to Congress. The new fee, which would be in addition to about $45 roundtrip in U.S. government fees already charged on trans-border plane tickets and a host of Canadian charges on air travel, would add to a passenger ticket tax burden among the highest in the world.

“There already is a significant tax burden on air travelers flying between Canada and the U.S., which negatively impacts the ability of Canadian airports and the Canadian aviation sector to compete fairly,” said CAC Chairman and Interim President Bill Restall. “We share the concern of our tourism partners that an additional fee would further drive Canadian travelers to take to their cars and fly out of U.S. border airports.”

News of the proposed fee comes as increased focus is being given to Canadian air travelers flying out of U.S. airports due to lower costs. A travel intentions survey released by the Hotel Association of Canada (HAC) recently revealed that

21% of Canadian leisure travelers said they traveled by car to a U.S. airport in 2010 to take a trip using less expensive airline tickets for U.S. or foreign travel - up from 18% in 2009. An additional 11% of travelers said they had not done so in the past, but that they might do so this year.

The Canadian Airports Council (CAC) comprises 47 members representing more than 200 airports, including all of the National Airports System (NAS) airports and most significant municipal airports in every province and territory. Together, CAC members handle virtually all of the nation’s air cargo and international passenger traffic and 95% of domestic passenger traffic.

FDFA says “It’s better at the border”with new marketing campaign

CAC against proposed U.S. air fee

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treasurer. The three directors are Justin Guay of IGL, Nancy Enright of BHT de Philisburg and Len DaSilva of West Coast Duty Free.

FDFA Gold Standard AwardsThe winners of the FDFA’s 2010

Platinum Award, awarded to the shop demonstrating the highest quality standards determined by a specific set of criteria, were Boutique Hors-Taxes de Philipsburg Inc. (category A) and Blue Water Bridge Duty Free Shop (category B). Niagara Duty Free walked away with two awards: one for Best Marketing and one for Best Marketing Promotion of a Canadian-made Product. West Coast

Duty Free won the Best New Idea Award. Blue Water Bridge’s Richard Stebbins also won the Outstanding Customer Service Award. Courtny Becker of DFS Ventures Inc (Emerson Duty Free) won the Doug Waldie Student Scholarship Award. Supplier of the Year 2010(large) went to Pernod Ricard Americas Travel Retail. Supplier of the Year 2010 (small) went to Turkey Hill Sugarbush Ltd. Best Fragrance/ Cosmetic went to Michel Germain Parfums for Sexual Secret. Best new Spirits /Tobacco/Beer product went to Pernod Ricard Americas Travel Retail for Absolut Berri Açai. Best new Specialized product went to Distribution Fontaine for Kinder Chocolate

Former FDFA President Peter Brain (l) is now vice president of the association succeeded by new president, Abe Taqtaq (r).

Pernod Ricard TRA’s Sandra Welch and Lori Watson show their trophies to Windsor Duty Free’s Abe Taqtaq, the FDFA’s new president.

Niagara Duty Free General Manager Steve Richardson with the two prizes his store won at the FDFA Gold Standards Award.

The “founding fathers” of the FDFA, who started the Canadian land border association 25 years ago, at the Silver Anniversary celebration in Niagara Falls.

The Frontier Duty Free Association announced the positions of its new board, which was elected during the FDFA’s 25th Annual Convention in Niagara Falls in November.

Windsor Duty Free’s Abe Taqtaq has been appointed president, replacing Peter Brain of Blue Water Bridge, who remains on the board as vice president. Abbotsford Duty Free’s Paul Dickinson continues as secretary and Peace Bridge Duty Free’s Jim Pearce will remain as


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Transport Canada traffic data for the “top 32” participating airports indicates that total air traffic for 2010 was up 4.2% over 2009.

By segment, traffic was up just 1.6% domestically, but 7.1% on U.S. transborder and 8.7% on overseas flights.

But December increases of 2%, 5.5% and 5%, respectively for these three segments, represented a step down from much higher growth rates in September through November in the transborder and overseas traffic segments.

In international overnight visits for 2010, visits to/from non-U.S. international markets was quite flat, despite a healthy increase in traffic. Visits by U.S. residents by air were up 5.7%; visits by car were down 3.5% however.

The strongest growth in air was in Canadian visits to the U.S., which were up 13.2%. These were slightly outpaced by overnight automobile trips by Canadians to the U.S., which were up 14.9%.

For the year, the biggest gains in overnight visits were secured from mainland China (up 20.4%), Japan (up 18.2%), South Korea (up 17.9%), India (18.5%), Brazil (up 29.8%), and Australia (up 14.3%)Source: Canadian Airports Council

Canadian air traffic and visitation climbs in 2010

BY THE NUMBERS: CANADA Canadian airport duty free sales end year strongly up; land border sales stay flat

Canadian airports kept their strong recovery going throughout the year, recording double digit duty free sales growth in 2010, according to the Canadian Border Agency. But sales at land border shops did not show much progress, with final 2010 sales up less than one percent over 2009 sales.

Canadian airports finished 2010 with duty free sales up 13.24% over 2009 to C$201 million. For December, airport duty free sales were C$18.9 million, up 10% compared to December 2009.

All three of the major product categories had positive results in 2010. Perfume, Cosmetics, and Skincare (31.24% of total airport sales in 2010) rose 11.56%. Alcohol, (22.76% of airport sales), increased by 13.58%, and Tobacco (19.62%) was up 6.45%.

The Vancouver Winter Olympics helped other categories have a fantastic 2010. Although clothing only accounted for 3% of airport sales in 2010, sales rose more than 60% over 2009. Sales of Souvenirs (2.3% of total airport sales) were up 28.03%.

Canadian land border sales in 2010 increased less than one percent, or .84%, to C$141.8 million, with December land border sales down slightly, by -.73% versus December 2009, to C$10.6 million.

Full-year sales of two of the three major product categories were down in 2010: Alcohol, 38.36% of total land

border sales, fell 2.46%, while Perfume, Cosmetics, and Skincare (13.99%) slipped 2.31%. Tobacco (28.43%) was the lone bright spot in 2010, with sales up 7.95%.

Ontario was the only one of the four land border regions with negative sales in 2010, down 1.44%. Sales in the Atlantic/Quebec region were up 1.62%; Prairie was up 9.89%; and Pacific was up 3.34% in 2010.

January update: Canada’s duty free land border and airport sales maintained the same pattern set throughout most of 2010, with airport sales showing consistent double-digit gains and land border sales struggling to catch up. Overall, national airport duty free sales figure for January 2011 are C$17.3 million. This is an increase in sales of 13.86% compared to January 2011 sales. However, the January 2011 airport sales were down more than C$1.5 million from the December 2010 figures.

The national land border duty free sales figure for January 2011 reached C$7.1 million, a 0.37% decrease in sales compared to January 2010; and down C$43.5 million from the month before. By region, Land Border sales were up in the Pacific Region and in the Atlantic/Quebec Region, by 11.33% and 2.66% respectively compared to January 2010. Sales were down in the Prairie Region and in Ontario, 2.88% and 4%, respectively.

Canada eases carry-on restrictions; enhances airport security The Canadian Transport Department

has announced changes to airport screening that eases restrictions on carry-on items that can be taken onboard flights. The government says that the move came about after it “listened to travelers” and is designed to “increase convenience for the traveling public while maintaining a consistently high level of security.”

The initiatives are the result of the recently completed review of the Canadian Air Transport Security Authority (CATSA), announced in spring 2010. They also reflect investments in aviation security arising from The Government of Canada Response to the Commission of Inquiry into the Investigation of the Bombing of Air India Flight 182.

“Our government takes aviation security seriously, and we are unwavering in our determination to keep Canadian travelers safe and secure from terrorism,” said Chuck Strahl, Minister of Transport, Infrastructure and Communities.

“CATSA’s screening will be smarter, and more efficient and effective by modernizing passenger and baggage screening,” said Rob Merrifield, Minister of State (Transport). “Harmonizing our prohibited item list closely with international standards will improve the passenger screening experience.”

As a result of the CATSA review, air travelers can now bring in their carry-on baggage small scissors and tools that are no longer than six centimeters (excluding

the handle). Knives of any size or length remain prohibited. New equipment and lane configurations will enhance the flow of passengers and bags at the security screening checkpoint, says the Canadian government.

CATSA will be installing equipment that will automatically separate suspicious bags from cleared bags, reducing congestion. In addition, CATSA is expanding the use of the Trusted Traveler CATSA Screening Line for pre-approved travelers who hold a valid NEXUS card.

There will also be new dedicated lanes for families and those with special needs with equipment specifically designed for bigger items like strollers.


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$1.2 billion expansion of Terminal 4 at JFK underwayDelta Airlines to move to T4 as it builds NYC into its international hub

One of the largest, and potentially far-reaching airport renovations currently underway in the United States, began construction in February, a $1.2 billion redevelopment and expansion of New York JFK Terminal 4 to create space for Delta Airlines, which will move from its current location in Terminal 3.

The project follows a multi-year effort among Delta, the Port Authority of New York & New Jersey (PANYNJ), JFKIAT and Schiphol USA, as Delta moves forward to build New York into a hub for its international operations.

The announcement that the deal had been approved by PANYNJ was made in August with major fanfare, especially since the project is estimated to create more than 10,000 jobs over the next three years. The ground-breaking ceremony took place last November, and Insider understandsthat actual construction was underway by February.

The expansion of Terminal 4’s Concourse B includes the replacement of outdated facilities, the addition of nine new international gates sized to accommodate larger aircraft, an expanded baggage claim area, and inline baggage screening. It also includes the construction of a connector between Terminal 2, where Delta currently operates its domestic flights, and Terminal

4— which has been managed by Schiphol USA subsidiary JFKIAT for the past 10 years.

The project also includes construction of a new Customs and Border protection area and, in a move that will have major implications for T4’s retail concession program, the two security checkpoints will be centralized on the departure level creating what JFKIAT calls “a far larger, more passenger-centric, post-security area for accessing the terminal’s retail and food & beverage concessions.” (See page 28 for exclusive interview with Janice Holden, JFKIAT Chief Commercial Officer about the retail opportunities ahead.)

Later on, in May 2015, Terminal 3, where Delta currently operates its international flights, will be demolished, and paved for aircraft parking. This will allow for improved performance through dual taxiways and better on-time performance.

Since making a strategic decision to build New York into a hub earlier this decade, Delta reports that it has made major investments across the New York region, boosting its economic impact to more than $13 billion annually. Delta says that when completed, the total economic impact of Delta’s New York operation will contribute over $19 billion annually to the state.

Terminal 4 today serves 9.5 million travelers annually. With the new Delta gates, passenger volume is expected to increase to 15 million. JFKIAT and the Port Authority will continue their public/private partnership, and Terminal 4 will continue to operate as a multi-use facility serving both domestic and international carriers.

“This is a game-changing deal for our customers and the entire regional aviation system,” said Port Authority Executive Director Chris Ward in a statement during the announcement of the project in August. “It increases JFK’s capacity, vastly improves the customer experience and strengthens the economic competitiveness of the most important gateway in the country.”

“This remarkable expansion represents a logical next step in realizing the long-term vision for our terminal,” added JFKIAT President Alain Maca.

Completion of the first phase of development with full relocation of Delta’s Terminal 3 is scheduled for May 2013 with overall completion of Terminal 4 scheduled for 2015. The current 1.5-million-square-foot Terminal 4 opened in May 2001 and reached an annual passenger volume of 9.5 million air travelers in 2009. Terminal 4 is one of the largest terminals in the New York area, serving nearly 40 international and domestic airlines.

The artist rendering of the JFK Terminal 4 future drop-off area, scheduled to be completed in May 2013.

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T4 – Delta expansion ushers in a new era of retail development for JFKIAT

One on One with Janice Holden, Chief Commercial Officer, JFKIAT. Lois Pasternak reports.

Janice Holden, Chief Commercial Officer, JFKIAT says that Terminal 4 comes away with a number of significant wins from the expansion project and relocation of Delta’s international gates, particularly from the commercial and the concessions side.

“Today’s already robust concessions program is before security and that has always been a challenge for us,” says Holden. “It hasn’t stopped us from having some incredible performance, but it has always been a challenge because a pre-security environment –after 9/11 – is not really a trend in aviation today.”

Holden points out that the large international component of T4’s passenger mix drives its commercial offer even though the location of the stores is not ideal.

“Over 75% of our program is pre-security and despite the fact that our primary commercial offerings are pre-security, we do an incredible job because we have a very large percentage of international passengers. About 85% of our traffic is destined for international gateways. Of those probably 55 - 60% are non U.S. passport holders. These are foreign nationals for whom shopping, particularly in New York, is part of the reason that they come here. So a large percentage of our passengers continue to shop even as they are leaving the country.

This very large international program with so much foreign currency spend helps keep our sales trend plan very healthy.”

Holden says that she has not been able to find any specific studies that will forecast the anticipated increase T4 can expect when it converts its pre-security location to a post-security program. “But anecdotally, the experts are telling me that sales automatically increase between 15 and 25%,” she says.

Holden explains that T4 is not actually relocating the stores that are currently in the Retail Hall. Rather, what changes is the location of the security check-points.

“We are not moving anything. Our building is shaped like a U, and today the security checkpoints are located at the entrances to our two concourses, one on the left side and one on the right side of the U. Our retail program which comprises over 55, 000 sq feet in the retail hall, is in the base of that U, in what we call the knuckle. It is all pre-security. We have very little, not even 15% of our program, in our concourses, because that is not the

way the building was designed. And when we opened in May of 2001, the trend was different than it is today, clearly.”

JFKIAT officially opened Terminal 4 in May 2001: “And so in September, after 9/11, when the building had been open only four months, and with such a large pre-security environment, we really got hit hard,” she recalls.

Once the current construction is completed, the two security checkpoints will be centralized on the departure level however, plus the existing building will be expanded.

“Under the new configuration, T4 will have an entirely post-security commercial environment, which will be the biggest impact,” explains Holden. “In addition we will have the opportunity to add another 40-50% of square footage to the existing concession space.

“We are really very excited and this is an amazing time right now for everyone, including all of our concession partners who are also pretty excited about this opportunity. Even though, getting there,

Janice Holden, Chief Commercial Officer, JFKIAT

JFK T4’s current Retail Hall will be converted into a post-security environment once the current renovation and expansion is completed in 2013.

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we will have to suffer through noise, dust and construction. We are committed to managing that as best as we can. At least we know what is ahead for us.”

Holden notes that a lot of the construction that will be done is fortunately external — the concourse and inline baggage system are being built outside of the existing structure.

“So there is really no impact to our business from that,” she says.

“But doing business in the retail hall will not be without its construction challenge,” she admits. “The project is slated for opening in May of 2013, so we have basically two years to get this done.”

JFKIAT is working closely with Delta, and has issued an RFP for consulting candidates and, from the concession side, has a search on for a director for the concession management, both of which will be chosen shortly.

“We have our team, and a representative from Schiphol Airport, and from Delta. The plan for this year is to work together with the consulting firm and an architectural firm to come up with design, the flow, and the look and feel of the concourse. Then we work very closely with all of our incumbents, and

their design teams and architects, because they have a lot at stake here. We want to maximize what we put where and how we flow the passenger traffic. We basically have until 2012 to execute the plans, finalize negotiations, and start building in certain areas. By 2013, when the security checkpoint moves upstairs, we can complete the remainder of the build-out,” says Holden.

“It should be really quite an impressive program by then,” assures Holden. “This program is a chance to create something that is New York and new and really meets the needs of today’s passengers. Our passenger mix will change a bit, because the Delta passenger mix is slightly different than ours. Delta has made a huge commitment to Kennedy Airport to international service. They had a lot of feeder service into here, but they are operating a huge international program from Kennedy now.”

Holden says that the nine gates that are being added onto the existing B concourse are primarily international gates, since they are replacing Delta’s international terminal. “T2, which will continue to operate, does not have an international component. So in the future when you fly from Miami, you

could fly into T4 or you could still fly into Delta’s Terminal 2, and then connect to your international flight at T4.”

The question is what will happen with Delta’s concessions partners that are in Terminal 3 today? “All of the current concessionaires in T3 have leases that expire in 2013. So this change is not a surprise. And as much as possible, we will try to accommodate some of those concessionaires here,” says Holden.

“Delta has reached out to the concessionaires to say that there may be some opportunities in terminal 4. But we are not ready to discuss anything until after flows and designs are decided.”

The main priority, she says, is to accommodate and service the Delta passenger.

And how does JFKIAT envision the new retail program will look?

“We have the opportunity here to take the retail concessions to a whole other level,” says Holden. “We have the chance to take away the walls, and do away with glass. We have the chance to open things up in ways that may be more like our European colleagues are doing. For example, we have the opportunity to move passengers through our retail area, not just around it. If we can do this in a way that works, we are open to anything.

“So it is a great opportunity for us to try and figure out how best to progress. So often in the past you were stuck with the box that you were given, and then you have to work within that box. But in this case, we are going to try and open up the box and take down the walls and redesign things. Now the concessions will be an integral part of the plan.”

“It is a very exciting time for us and our concession partners and hopefully for the traveling public that goes through here,” says Holden in conclusion.

Right: Artist rendering of the future secu-rity arrangement in Terminal 4 where the two current checkpoints located on the right- and left-sides of the “knuckle” of the u-shaped terminal will be relocated to a centralized position on the departure level.Below: The Lobby of the renovated and expanded Terminal 4 will be open and spacious.

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BAA USA condemns “flawed” union study that attacks use of private developers in airport concessions

Airport developer and concessionaire AIRMALL USA is condemning what it calls a “flawed and misleading” study by the labor union interest group Airport Group, which attacks the use of private developers in the airport concessions industry.

The Airport Group, the national airport policy and development arm of Unite Here, has released the first in a series of analyses about the use of private developers in the airport concessions industry and what it calls “its negative impact on the airport community.” Unite Here is the union for

travel hospitality workers, representing 25,000 airport workers across the U.S. and Canada.

The first piece in the series, LessRent Generated under the Developer Model, demonstrates that the percentage rent of concessions sales paid to airports which utilize the concessions developer AIRMALL USA (Baltimore/Washington, Boston Logan, Pittsburgh, and Cleveland Hopkins International Airports) are lower than rents collected by peer airports.

BAA USA reacted immediately to the study when it was released at the beginning of March.

“Simply stated, Airport Group and Unite Here have conducted a flawed analysis of our model, and it misrepresents the truth. Instead of telling the whole story, they are being selective about the information they present,” said BAA USA President Mark Knight.

“Their tactics are both predictable and unacceptable, and their attempts to somehow undermine the validity of our business model with half truths will not go unanswered. We will pursue every avenue to be certain that the whole truth is out there about our success and the success of our airport partners in Boston, Baltimore, Cleveland and Pittsburgh.”

Knight spoke with Insider about the Airport Group study: “We are known for being all about our employees. Our model brings in multiple companies who then employ many more people. As the programs’ top line increases, as we generate more sales, and offer better service and better selection, those employees get to make more money. They prosper and everybody wins, including the customer. So, I think our model, ironically, is the model that should be embraced by the airport group, not vilified.

“Our goal is always to be a real part of the airport community,” stressed Knight.

AIRMALL USA manages and develops the retail, food and beverage concessions at its four airports. Founded in 1992 at Pittsburgh International Airport, the AIRMALL model has posted some of

BAA USA has operated the concessions in terminals B & E at Boston Logan International Airport since 1999 during which time rent revenue has gone up 165%.

The new AIRMALL at Cleveland Hopkins International Airport was substantially completed in 2010, but rent revenue jumped by 161% since BAA took over from a master concessionaire in 2008.

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the highest per-passenger spends in North America over the past two decades and has won numerous awards for innovation and customer service.

In its statement released on March 1, Knight went on to highlight some important statistics about each of AIRMALL USA’s projects, which demonstrate that they generate greater overall sales, more sales per passenger, and higher rent revenue for the respective airports:

At Pittsburgh International Airport, based on 2010 figures, sales per enplanement have risen by 400% (from $2.69 to $13.45), revenue per enplanement has gone up by 357% (from $0.47 to $2.15), and rent revenue generated by the property has gone up by 126% (from $3.9 million to $8.8 million) since AIRMALLUSA inherited a master concessionaire’s model when it began developing and managing concessions for the airport in 1992. The program at Pittsburgh International Airport has remained the gold standard for airport concessions since its inception. This despite the fact that the airport has witnessed a dramatic downturn in passenger traffic over the past 10 years.

At Boston Logan International Airport, as of 2010, sales per passenger had risen during that period by 149% (from $4.87 to $12.15), revenue per enplanement had gone up by 211% (from $0.69 to $2.15), and rent revenue had increased by 165% (from $5.1 million to $13.5 million), since AIRMALL USA began developing concessions in terminals B & E in 1999, taking over from a master concessionaire.

AIRMALL USA’s largest project is at Baltimore/Washington International

Thurgood Marshall Airport where it took over from a master concessionaire in 2004. Based on 2010 figures, sales per enplanement have gone up by 61% (from $5.47 to $8.81), revenue per enplanement has jumped 117% (from $0.65 to $1.41), and rent revenue has risen by 142% (from $6.4 million in 2003 to $15.5 million in 2010) since 2003.

The new AIRMALL at ClevelandHopkins International Airport wassubstantially completed in 2010, although AIRMALL replaced a master concessionaire model starting in 2008. Since that time, sales per passenger have risen by 30% (from $5.59 to $7.28), revenue per passenger has increased by 163% (from $0.35 to $0.92), and rent revenue has jumped by 161% (from 1.8 million to 4.7 million).

“The numbers really tell the whole story. The AIRMALL model trumpsother concessions models in terms of the revenue it generates, including rent revenue for the airport,” Knight continued. “At each of our projects, AIRMALL has been highly successful at partnering with the airport authority to develop an enhanced, profitable program that includes the very best international, national and regional brands. Moreover,everything is offered at ‘Regular Mall Prices…Guaranteed.’ This represents true value to the passenger, because they knowthey are getting quality goods and services for a fair price.”

To view the report issued by the Airport Group, go to http://www.airportgroup.info/AIRMALLed_LessRent_Feb2011.pdf.

The Ultra Diamond Store in BAA’s AIRMALL at Pittsburgh International Airport: rent revenue generated by the property has risen 126% between 1992 and 2010.

BAA USA President Mark Knight also points out AIRMALL’s track record of transforming its concessions programs into economic drivers that generate more business and employment opportunities. He offers some examples from AIRMALL USA’s most recent projects in Baltimore and Cleveland:

·AIRMALL USA has nearly doubled the number of local operators or concepts participating in the Cleveland program versus its predecessor. The new concessions program has also more than tripled the Airport Concessions Disadvantaged Business Enterprise (ACDBE) participation.

·In Cleveland, the number of concessions employees has more than doubled – from 343(pre-AIRMALL) to 772.

·In Baltimore, the number of concessions jobs has tripled since AIRMALL assumed management of the program in 2003 – from 500 employees to nearly 1,500 employees.

“Airport Group and Unite Here claim to be representing the interests of workers. Basedon AIRMALL USA’s track record of generating additional jobs for its programs, our formula provides plenty of employment opportunities,” Knight added. ”Many of the additional jobs available at the airport offer very competitive wages, because they are manager- or supervisor-level jobs.”

In addition, Knight underscored the added value that a developer brings to an airport authority – capital that is earmarked for infrastructure development at the airport. Heoffered two examples:

·In Cleveland, AIRMALL USA invested $8.4 million to transform the concessions program at Cleveland Hopkins International Airport, representing one of the largest construction projects in Cleveland at the time. Thedevelopment took shape during one of the most dramatic economic downturns in recent American history.

·In Boston, AIRMALL USA completed a two-year, $33 million concessions development project in 2008 to turn what was part of the roof of the terminal into shops and restaurants. This permanent improvement to the infrastructure of the terminal resulted in the addition of nearly 20 new concessions units to the program – specialty retail, restaurants and bars, fast-casual/snack units, specialty services, and news/gift units.

“Other concessions models simply do not have the motivation or the capital to make those kinds of permanent improvements,” Knight concluded. ”It’s another important component of AIRMALL’s model that makes us far superior. Once we finalize a shared vision with our airport partners, we can change the face of the airport to improve operations, drive sales, and ultimately enhance the passenger experience.”

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The economies of most Latin American countries have enjoyed a strong year. With the exception of Venezuela, most observers agree that economic growth has been solid, employment has increased and exchange rates have been relatively stable throughout the continent. In the short and medium term, the outlook seems to be positive as the region was only marginally affected by the international economic crisis in 2009. Skeptics will say that much of the growth has come from increasing exports of primary goods and whereas this is partially true, there seems to be an optimistic air throughout the whole continent.

Brazil is undoubtedly the power house that is fueling growth throughout the southern part of Latin America; the new President Dilma Rousseff seems to be coping with the pressure and the country finished 2010 with GDP growth of 7.5%, the highest rate since 1986. Rousseff’s economic policies are designed to control inflation and to diversify the country’s

exports and avoid dependence on the export of raw materials. The government is targeting 5% annual growth over the next three years and this would be positive news for the whole region.

Economic growth historically brings an increase in business and leisure travel and this certainly has been the case for Latin America. Passenger traffic at Brazilian airports rose by just over 20% last year with the Infraero network of 67 airports reporting year end traffic of 139.4m domestic passengers and 15.9m international passengers, increases of 21.2% and 21.6% respectively. This is not only good news for Dufry do Brasil, the duty free concession holder at the principal Brazilian airports, but also a boost for other travel retail operators in the region. Increasing passenger traffic has not only meant double digit growth in airports but also large numbers of tourists crossing international borders in buses and cars, taking advantage of the wide selection of luxury goods available at border and

low tax stores in Paraguay, Uruguay and Argentina.

Although Dufry do Brasil has not reported 2010 full year sales due to parent company stock exchange reporting restrictions, most observers agree that sales growth will be substantial. Sales in the first nine months of the year grew by 44% to 219.9m Swiss Francs and most analysts are convinced that the 4th quarter will be strong, given the 21.6% growth in international passengers at Brazilian airports. In its 3rd quarter report parent company Dufry AG announced that “Brazil continued its strong performance as Dufry has implemented several initiatives aimed to increase spend per passenger including innovative promotions and sales incentives programs.” With the Olympic Games to be held in Rio de Janeiro in 2016 and the Soccer World Cup in 2014, Dufry is already planning to take advantage of the new opportunities that increasing tourism will bring.

One of the region’s travel retailers who has become increasingly dependent on Brazilian travelers is border shop operator London Supply. The concessionaire at the mega duty free shop in Puerto Iguazu, on the border with Brazil and Argentina, makes no secret that the growth in their flagship store is almost entirely due to the increasing numbers of Brazilian visitors to Iguazu.

London Supply had a very positive year in both the north and the south of Argentina. Paco Heredia, the company’s commercial manager, confirmed to Insider,“2010 was a great year for London Supply with sales booming in our outlets in Iguazu and Tierra del Fuego. If we look at overall sales, Puerto Iguazu is clearly our most important store and we are pleased to report sales growth there of 57% in 2010 compared to the previous 12 months. The strong Brazilian economy has helped this really strong growth and the number of Brazilian visitors continues to increase.”

Such is the strength of the tourism industry in Argentina this year, the sales

Brazilian boom benefits allFederica Tojo, special correspondent for Travel Markets Insider reports on the leading Latin American duty free operators from her base in Buenos Aires

London Supply modified the central hall of its Iguazu store allowing it to stage events

INSIDER


boom at London Supply has benefited London Supply’s business in Tierra del Fuego as well as Iguazu.

“We have also seen really good growth in our airport and downtown stores in Tierra del Fuego,” confirms Heredia. “Sales grew by 52%, on a like for like basis. Tourism at Ushuaia is now virtually all year round with winter sports and cruise ships in the summer. In addition, this year we have the revenue from our renovated store in Rio Grande.”

London Supply has made some minor alterations at its stores in Tierra del Fuego, says Heredia, following the completion of the first stage of renovations at its downtown store in Ushuaia. “People passing the store can now see directly into the shop from the street and can see almost all of the products on display. We have been able to make these improvements without making major changes to the store’s frontage, which is one of the emblematic buildings of Ushuaia. In addition, we have also added some very attractive LED display lights which illuminate the building without detracting from the architectural style. These come in a variety of colors and we can change them in line with special promotions like sky blue and white when we are celebrating Argentine national holidays or the colors of the country of the cruise ship that is calling in the port that day.”

Halfway through 2010, London Supply modified the central hall of its Iguazu store, which the retailer often used to stage different events. “Given that shoppers must pass through here to get to the cash desks, it really is quite important. During the second half of 2010, we have been using it as a very special shop window for some liquor brands who want to build special displays using the two large walls that are available. A full promotional package includes tastings, and floor markings that can have incredible impact.The resulting sales have been remarkable

and with a little bit of creativity, the special displays can leave a very big impression with shoppers just as they prepare to leave the store. We are sure to continue these special displays through the rest of 2011,” says Heredia.

January and February have also been solid months for London Supply in Tierra del Fuego and on the northern border, says Heredia: “We are confident the strong start to the year will continue and we are now looking forward to the Carnival period and then Easter. The traditional winter holidays half way through the year are not too far away and we are planning strong promotions for all those periods. Sales continue to grow month after month and with the current stable economic situation, we can’t really see that stopping in the short term.”

The Mannah duty free group is also benefiting from the growth in intra-regional travel. Sales at the border shop and airport shop operator have pulled well ahead of expectations according to the company president and CEO, Alejandro Mannah. “2010 was a really good year for our shops at the border stores and our airport shops,” comments Mannah. “At the beginning of the year we were hoping for a good year, but it was really excellent and much better than expected. The regional economic situation is very stable. The dollar has also been relatively stable against all the local currencies, unemployment is down and that is great news for business and leisure travel and for everyone involved in the duty free business. We had been hoping for a good year but 2010 was much better than we had initially expected.”

“Given the strength of the tourist numbers in Ciudad del Este it’s safe to say that 2010 sales were better in the border stores than in the airport, with high double digit growth at our three border stores. However, we were also more than pleased with the way things went at the airport.

Sales at our arrivals and departures stores in Asuncion grew by 34%, compared with passenger traffic growth of 24%. The great thing during the whole year was that every month was important – we started the year well and then we had some great promotions for the World Cup and then we finished the year very strongly again with some great promotions which pushed sales ahead.”

According to Mannah, customer service and a solid promotional program have been the keys to last year’s growth: “For more than 30 years we have given our customers the best level of assistance and service - Brazilian travelers look for keen prices but they also want people to help them with product selection in the stores. We feel that customer service is really vital for success and this makes us different from our competitors. Both at the airport and downtown we really do our best to ensure that every single one of our customers leaves the store satisfied - this is the best way to make them come back the next time they are in town.”

Although the Mannah group has expanded into electronics and fashion, the company built its name as a retailer of perfumes and wines and spirits. Mannah notes that even though all categories did extremely well last year, it was the two traditional categories, wines and spirits and perfumes and cosmetics, which grew the fastest. “The performance of wines and spirits was actually quite astonishing with year on year growth of 68.5%. Perfumes and cosmetics also performed really well growing by 51%,” he says.

In a major departure in the way the company interacts with their customers, the Mannah group launched a web site at the end of last year that allows the company to talk directly to its customers. The site provides access to product and promotions information, and enables customers to reserve merchandise to ensure it is available when they come to the border.

“During the year we will be introducing additional benefits,” says Mannah. “As well as our own web page we will also be using social marketing sites such as Facebook in an effort to improve our customer service. As I have said before, we are really proud of our tradition in customer service and our web page activities are merely an extension of this.”

The Mannah group also plans some partial remodeling of the border shops, and will be making some changes to the electronics and accessories sections, as

London Supply has added LED display lights at its iconic store in Ushuaia

September 2010 23 ASUTIL Supplement

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well as adding more brands. “We are sure that more passengers will use the airport at Asuncion and more tourists will visit the area, all of which means more customers for our stores and a great 2011.”

Sales at Buenos Aires based duty free operator InterBaires followed the regional trend with strong double digit growth in 2010. Company CEO Martin Leal told Insider, “Sales throughout the year were exceptional and we finally posted a 45% increase in sales compared to the previous twelve months. The increase in passenger traffic was important but we also managed a 21% increase in our average sales ticket which is due to a solid promotional program and a very positive attitude from our sales people. We have also been working at increasing penetration and we managed to add 8 points to the rate during the year.”

The 45% sales increase has to be analyzed alongside a rise in international traffic at Buenos Aires’ principal airport Ezeiza of 11.1%, says Leal, adding: “Sales have been increasing constantly since the 4th quarter of 2009. We have seen increased numbers of every nationality but the strength of the Brazilian economy has meant that flights to and from Brazil are full. High numbers of Brazilians at Ezeiza and Aeroparque means that sales of all categories do well but Brazilian travelers are renowned for buying high ticket items and this was certainly true in 2010.”

InterBaires has been renovating both Ezeiza and Aeroparque, virtually rebuilding the arrivals and departures stores at Aeroparque in November.

“The stores are essentially the same size but we have taken better advantage of the available space. The new layout also takes into account newer categories that weren’t present before in both shops. We now feel that we have the right products given the new passenger profile of the airport user. Flights from Aeroparque now include several destinations in Chile, Paraguay and Brazil in addition to Uruguay. And the product offer now reflects this – we have the best-selling products for each category well displayed for shopper,” says Leal.

InterBaires also instituted a complete redesign of the cosmetic category at Ezeiza; a major overhaul since perfumes and cosmetics is the biggest selling

category in the store. The renovation added shop within shops for a number of brands like Dior, Chanel, La Prairie and Kiehl’s. “Chanel and Dior are well known brands [in Argentina] while La Prairie and Kiehl’s are less so. But they are doing a lot of new things around the world and the early results from these new shops justify the investment the suppliers have made,” says Leal.

Fine-tuning the product selection is an important and ongoing task for the commercial and sales team at InterBaires, one which will continue during 2011. Leal says, “We will look to bring in a number of new brands that are not on sale in the local market.”

The management team at InterBaires will be looking to consolidate the impressive sales growth experienced throughout 2010. In the medium term, a new passenger terminal at Ezeiza is bound to be a major boost for the company’s expansion plans. Most observers don’t expect the state of the art terminal to be ready before early 2013, giving the company additional planning time. Meanwhile, the company’s objective is to interact with customers in a more dynamic and innovative way offering new and better brands in traditional and new categories to ensure solid sales growth over the coming months.

Diego Arrosa, general manager at Duty Free Uruguay (DFU), confirmed to Insider that 2010 has been a great year for the company. “We set some very aggressive objectives and we bettered them. Year on

year sales at Carrasco airport were up by 52%, which is a tremendous figure when you realize that passenger traffic was up by 25%. We were helped by strong performances by almost every airline especially flag carrier Pluna’s new hub strategy bringing in increasing numbers. The Brazilian airlines have also brought in more passengers and there is no doubt that the Brazilian middle classes are traveling again and spending when they arrive and when they leave. The intercontinental flights to Europe and North America were up only slightly.”

DFU had a strong performance at Punta del Este as well as in Montevideo, says Arrosa.

“Traffic for the year was only up 10% but sales increased by 18%. This is a pretty decent figure and would have been higher but January last year was quite slow as we were putting new systems in and there were some hiccups, which couldn’t be avoided. However sales over the high season months from December through February have been extremely good with sales increases of over 60% month against month.”

In spite of the increase in total airport users at Montevideo to 1.65m, Uruguayan nationals are still the most important nationality for the duty free concession holder. “Uruguayan residents still account for 50% of those using the airport installations. Brazilians and Argentineans share second place with 15% each. However, the Brazilians are the second most important on their own in terms of purchasing power, being responsible for 27% of our total sales,” says Arrosa.

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Jamaican Tourism Minister Edmund Bartlett poses with Jamaica’s Ambassador to the United States, Audrey Marks (left), during a recent trip to Washington, DC. PHOTO BY LARRY LUXNER

Jamaica’s Minister of Tourism Edmund Bartlett:

New duty free legislation, arrivals shopping and cruise port to boost tourism A Travel Markets Insider exclusive report by Larry Luxner

When it comes to the all-important tourist industry, Jamaica’s best days are still ahead of it, says the country’s minister of tourism, Edmund Bartlett.

Bartlett, 60, went to the University of the West Indies in Kingston, where he earned his bachelor’s degree in accounting and business. Elected to Jamaica’s parliament in 1980, he served for 26 years in both houses. He has never actually worked in the tourism industry; rather, most of his private-sector career was with Texaco.

In an exclusive interview with Travel Markets Insider, Bartlett — who’s been on the job for nearly four years — said roughly two million tourists visited Jamaica by air and another million via cruise ship in 2010, generating $2 billion in foreign exchange and solidifying Jamaica’s position as a leading Caribbean destination.

That represents an increase of 4.7% over 2009 figures, though final numbers could put 2010 growth at 5%. He predicted that in 2011, tourism will grow by another 6.5%, thanks in big part to a 40% increase in cruiseship arrivals — not to mention aggressive marketing, an innovative product mix and what he called “adaptive pricing” as a strategy to encourage growth during hard times.

“What you do is give value to the customer rather than reduce the price of the room, for example, offering three nights for the price of two. So when the market turns around, the value of your room has not been discounted,” Bartlett explained. “The customer has no notion that your room is priced below its true value.”

Airlift improvesContributing to Jamaica’s success in

2010 was improved airlift.“Jamaica was able to have more

seats coming in for all seasons than the rest of the English-speaking Caribbean combined,” he said proudly. “The whole change in the aviation landscape required adapting our own strategies. We’ve gone into partnership with American, JetBlue, USAirways and other airlines. We also work very closely with tour operators to secure charters from the Canadian market in particular.”

He added that Air Jamaica, which has merged with Caribbean Airways, “seeks to refloat a number of routes that were suspended or discontinued. One such route is Baltimore, which is coming back with three flights per week to Montego Bay. We’re also now served by AirTran.”

At the same time, legacy carriers like American and Delta have been increasing their rotations. “What this meant was that Montego Bay’s airport, which has been newly refurbished, is now seeing larger volumes, and that’s important for us in terms of jobs. Margaritaville now employs 175 workers at that airport, where it has two restaurants.”

That’s especially crucial considering that Jamaica lost 40,000 jobs during the recession, especially in the once-important sugar and bauxite industries. Tourism, meanwhile, saw a 3% rise in employment. “Tourism now earns more than everything else and employs close to 90,000 Jamaicans directly and another 286,000 indirectly. It has economic influence over 10% of the entire population.”

The average tourist to Jamaica now stays on the island 9.3 days but spends far less on local purchases than do tourists visiting Puerto Rico, St. Maarten or St. Thomas.

“Visitors aren’t interested only in souvenirs, they’re interested in real shopping,” he said. “And some destinations, particularly St. Maarten and the U.S. Virgin Islands, have huge average expenditures, even up to $400 per person. The Cayman Islands is close to $250 per person. Jamaica is just under $100. It’s very low because our shopping is not at the level it should be.”

New duty free law enactedHowever, Bartlett said passage of a

new duty free law four months ago will allow for a much larger inflow of branded luxury products.

“This act will allow our duty free merchants to bring in high-end products like leather goods, eyewear and clothing, and to pay at the point of sale. Previously it was just jewelry,” he said. The only provision is that such goods must be kept in a bonded warehouse and may not be sold for on-island consumption. Since the law’s passage, Cartier has opened a new shop at Montego Bay airport, said Bartlett.

“The new duty free legislation will significantly expand the shopping experience in Jamaica — at airports, duty free shops and anywhere in Jamaica. This is a whole new ball game. You could even establish shopping malls and designer outlets,” he explained. “We’ve also amended the law to have incoming and outgoing duty free purchases at the airport.


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Previously, we had duty free shops only for those leaving the country. This gives locals a chance to buy duty free too. It will stimulate more commercial activity at the airports. It’s a strategy we’re employing to help reduce the cost of on-ramp operations.”

At present, said Bartlett, cruiseship passengers spend about $93 a day, while stayover arrivals spend $125 daily. The new legislation, he predicted, will bump those numbers up to $105-110 a day for cruise arrivals and $130 a day for stayovers.

That may not sound like much, but as Bartlett says, even $1.00 more times 9.4 days times 3 million passengers translates into additional sales of $28 million.

The advent of casino gambling should also boost those numbers, he predicted.

“Casinos bring a different atmosphere to your destination,” Bartlett told TMI. “It also enhances the shopping experience, because more people will come to buy high-end goods as these high rollers visit a destination. They bring their families to do shopping. Experience has clearly shown that shopping is a big beneficiary of casino gambling.”

The cruise industry is also looking up, he said.

New Falmouth cruise port welcomes first vessel in February

“Cruiseships had a difficult period. There was a repositioning out of the Caribbean and into the Mediterranean, but now we’re seeing a renaissance of cruiseship activities,” he said. “With the addition of Falmouth, which will accommodate Oasis of the Seas, we expect to see a 40% increase this year in cruises.”

On Feb. 17, the restored colonial town of Falmouth received its first vessel — Voyager of the Seas — following a $150 million facelift and construction venture between the Jamaican government and Royal Caribbean Cruises Ltd.

“It’s a Georgian town, so we sought to restore the architecture and give it a façade,” he said. Falmouth, located 12 miles east of Montego Bay along Jamaica’s north coast, has already welcomed 25,000 cruise passengers to the port, which was scheduled to be inaugurated Mar. 22 by Bartlett as well as Prime Minister Bruce Golding, Transport Minister Mike

Henry — who was instrumental in getting Falmouth built — and officials of RCCL and the Port Authority of Jamaica.

The tourism minister says he is not concerned whether Falmouth might act as a detriment to Jamaica’s two other cruiseship ports, Ocho Rios and Montego Bay:

“Our existing ports have a different appeal; they call for vessels of a different size. Falmouth will attract the megaships like Oasis of the Seas, while medium and boutique ships will continue to call on the other two ports.”

Falmouth has capacity for between 600,000 and 800,000 passengers a year, though Bartlett said he expects Ocho Rios to boost its arrivals from the current 340,000 to around 600,000 in the next two years.

“Jamaica has more attractions than any other English-speaking Caribbean port,” he said. “Besides, it’s a central stop on the Western Caribbean itinerary; you can’t have a Western Caribbean itinerary without Jamaica. And when Cuba comes in, it’ll be even more interesting.”

Jamaica currently has around 30,000 hotel rooms, and Bartlett expects that

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to reach 40,000 in the next five years. He says this new surge of rooms will be more EP, with less of the mass tourism appeal so common to both Jamaica and its competitors in Cuba, Cancún and the Dominican Republic.

“The all-inclusive is a valuable model that has served the development of tourism very well in the Caribbean, and Jamaica in particular. It responded to affordability issues and enabled the development of critical mass in key destinations, which allows for better airlift.”

But this is clearly not the model being pursued by Jamaican tourism officials anymore. Rather, Bartlett and his team are encouraging the construction of low-density luxury resorts with less mass-tourism appeal.

The tourism minister boasted that at 42%, Jamaica enjoys the highest rate of return visitors in the Caribbean.

“The loyalty factor is huge,” he said. “You go to any beach in Jamaica today, and I assure you that one out of every two people you talk to has been to Jamaica at least once before. I have the largest market at my doorstep. There’s so much more juice to squeeze out of America for us. There are so many gateways we have not yet opened.”

That’s one reason Bartlett doesn’t appear particularly worried about the

eventual opening of Cuba to U.S. tourism.“English-speaking tourists are far

more comfortable with English-speaking destinations,” he said. “When there is a choice of similar products, invariably the destination with the same language gets the benefit of the doubt.”

Bartlett said that in 2007 — the year he became minister of tourism — Jamaica got 163,000 visitors from Canada.

“Today, we’re at 330,000, and we’re expecting 350,000 for 2011, with a projection of 500,000 Canadians by 2015. This winter, in fact, I didn’t have enough rooms to meet the demand from Canada,” he said. “The Canadian market is growing, so we may increase our arrivals without doing any damage to the market share of Cuba, Dominican Republic or anybody else.”

He added: “We welcome Cuba’s return to mainstream tourism activities. Their proximity to Jamaica will be an asset to us, in terms of creating important packages that will enable visitors to have multiple experiences within the Caribbean. We see airlift being facilitated in this regard, as well as multi-destination marketing — particularly for long-haul destinations. Visitors from places such as China, Russia, Brazil and so on tend to stay for at least two or three weeks.”

In fact, he said the Caribbean could be marketed in those countries as a package, letting tourists visit Cuba, Jamaica, the Bahamas and the Cayman Islands all on the same trip. “Our marketing is so strategically focused that we don’t see Cuba getting people who should have come to Jamaica instead.”

And with only 1% of the U.S. tourism market, he said, “there’s so much room for growth out of the United States that to begin to talk about what’ll happen when Cuba opens up is almost idle chatter. Cuba can get twice the number of tourists we get, and we still won’t be affected because we’ve not tapped sufficiently into that market. American Airlines alone carries 23 million people through Miami airport every year. If I got only one million of that and Cuba got two million, we’d still be better off than we are now.”

Rendering of Jamaica’s new Falmouth cruise port which has undergone a $150 million facelift funded by the Jamaican government and Royal Caribbean Cruises. On Feb. 17, Falmouth received its first vessel, RCC’s Voyager of the Seas, shown above.


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Caribbean Tourism Officials prepare for U.S. opening to CubaCuba expert Larry Luxner reports.

The Obama White House has relaxed prohibitions on travel to Cuba by certain categories of Americans, seven years after President George W. Bush put those restrictions in place. Cuba-watchers say the number of U.S. citizens traveling to Cuba as a result could climb from the current 400,000 or so to maybe 500,000 or more.

When the ban is lifted altogether, however, more than a million Americans might hop on planes or cruise ships to Havana — leaving Caribbean tourism officials to wonder what that might mean to their own bottom line.

According to Cuba’s Oficina Nacional de Estadísticas, the island received a record 296,222 foreign tourists in January 2011, a 15.9% jump from January 2010 arrivals, and 33.9% higher than the number of tourists who came in January 2007. For now, a relatively small percentage of those were Americans, since U.S. citizens are still banned from spending money in Cuba as tourists.

John Issa, chairman of SuperClubs resorts, said in a phone call from Montego Bay that major resorts in Jamaica and other islands are monitoring the Cuba situation closely.

“What’s happened so far with the easing of travel to Cuba won’t have any effect [on the Caribbean], because it’s all related to exiles, organizations or study groups. But when relations between Cuba and the United States get normalized again, it’s bound to affect the region. We need to hope that it happens at a time when the

world economy is prospering and travel is growing.”

Issa added: “The supply will always be there despite market conditions, so what we really need is an expansion of demand — like the Chinese coming in large numbers to the Caribbean. Cuba will be just another factor to take into account. If Cuba opened up this coming winter,the rooms the Americans would occupy are currently occupied by Europeans and Canadians. So they’d have to find somewhere else to go.”

SuperClubs has 5,000 rooms in 20 properties throughout the Caribbean, including three all-inclusive hotels in Cuba: the 270-room Breezes Varadero, the 396-room Breezes Bella Costa (also in Varadero) and the 240-room Breezes Jibacoa.

The new U.S. rules, published Jan. 30 in the Federal Register:

* expand “purposeful travel” by offering general Treasury Department licenses for academic, religious and cultural trips to Cuba.

* provide specific licenses for “people-to-people” travel similar to the licenses provided from 1999 to 2003 by the Clinton administration.

* allow for non-family remittances of up to $500 per quarter for private entrepreneurial and cultural activities, provided those remittances don’t go to senior members of the Cuban government or the Cuban Communist Party.

* expand bilateral air links, allowing

new U.S. airports to operate charter flights to Cuba besides the three now authorized to do so: Miami, New York JFK and Los Angeles. (Ed. note: 8 additional airports were approved on March 8. See news on page 14.)

Last month, officials of Cuba, Jamaica and the Cayman Islands met during the Miami International Boat Show to draft a strategy to handle the predicted influx of pleasure boats heading south once the travel ban ends.

U.S. Coast Guard figures indicate that at least 600,000 boats in Florida alone are capable of making the 90-mile sea voyage to Cuba. The concern is that opening a floodgate of vessels would rapidly inundate Cuba’s few marinas.

The representatives — Commodore José Miguel Díaz Escrich of Cuba’s Marinas y Náuticas Marlin SA, Dale B. Westin of the Port Authority of Jamaica and Neville Scott of the Cayman Islands — say any relaxation of the U.S. travel ban to Cuba would effectively create a new Caribbean cruising ground encompassing the three countries.

The three officials also agreed to form a Caribbean Marine Trades Association that would serve as an umbrella group to promote yachting tourism to the Central and Western Caribbean. Today, the Eastern Caribbean — consisting of the U.S. and British Virgin Islands, Puerto Rico, the Bahamas and smaller islands south to Trinidad & Tobago — is far more significant when it comes to yachting.

Lisa Hamilton, president of the USVI Hotel & Tourism Association, said she’s not particularly worried that the Virgin Islands would suffer once large-scale U.S. tourism is allowed to Cuba.

“This Cuba opening has been talked

Marina in Grand CaymanPHOTO BY LARRY LUXNER

InterContinental Hotel, Puerto Rico

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about for years,” she said. “There might be some impact on our demand, but we have a very distinct market — the northeastern United States — that we feel will continue to be loyal to the Virgin Islands.”

Mario González, executive director of the Puerto Rico Tourism Company, feels much the same way.

“The opening of Cuba to the U.S. market for tourism will have an impact on the number of visitors we’ll receive in Puerto Rico. However, that impact won’t be as harsh as some may perceive — no more than 50,000 the first year,” said González, citing a study done on that specific possibility.

“You need to conduct studies based on supply currently available in Cuba, rather than how many people will want to go,” he said. “The important thing isn’t only the number of people who come to your island, but the quality of customers and what type of expenditures they make. With the development of the high-end luxury market, we’ll be attracting a specific segment of the market that would not come to Puerto Rico if not for the brands and flags being developed.”

He added: “Puerto Rico is not any less exotic because we’re under the U.S. flag. The fact that Cuba has been a forbidden place for U.S. citizens is of course an attraction. But that by itself does not mean we are going to lose a big chunk of market share.”

Rafael Romeu, author of an IMF study on that very subject, suggested that Cuba’s opening will prove to be a mixed bag for nearby countries.

“They would gain from redirected Canadians and Europeans who now vacation in Cuba,” he says. “But heavily U.S.-dependent destinations that do not have the ability to capture redirected Canadians and Europeans displaced by U.S. tourists will lose. Some of the most vulnerable include the Turks & Caicos Islands, the U.S. Virgin Islands, Cancún and perhaps Jamaica.”

I. Nelson Rose, one of the world’s leading experts on gambling law, predicts Cuba will have casinos within the next 10 years — with major implications for Cuba’s Caribbean competitors.

“The initial breakthrough will probably take place on cruise ships, with casinos, returning to the Port of Havana,”

he wrote in the Mar. 4 edition of RGT Online, a gambling website. “Initially, gaming will only be permitted on the high seas. But it is a short step from there to allowing the casinos to be open while the ships are docked.”

Rose, noting that bingo machines are sweeping Latin America, said it’s relatively easy to distinguish these gaming devices from true slot machines, at least for political cover.

“True casinos, with true slots and table games, are also common in much of Central and South America — but even more so in the Caribbean. A free Cuba will quickly allow casinos to reopen, in high-quality hotels designed for, and possibly even limited to, tourists.”

Michele Paige, executive director of the Florida-Caribbean Cruise Association, said the Cuba factor could cut either way.

“There’s a lot of pent-up demand for Cuba, and as cruise executives we’re equally very excited about the prospect,” she said. “Once Cuba opens up and as soon as it’s feasible, the cruise industry will be there. We’re very successful at taking passengers where they want to go.”

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Caribbean tourism mostly bounces back in 2010, but will it last?

Tourism numbers rebounded in most of the Caribbean in 2010, with 21 destinations showing increases over 2009, according to the Caribbean Tourism Organization. Mexico’s Cancún led the boom, up a healthy 16.5% in the first seven months of 2010. And among the smaller states of the Eastern Caribbean, Anguilla and St. Lucia recorded double-digit gains.

In fact, only seven destinations reported fewer stopover tourist arrivals than in 2009: Antigua & Barbuda, Bermuda, Curaçao, Grenada, Montserrat, St. Vincent and Trinidad & Tobago.

The Dutch-speaking Caribbean showed a marginal increase in arrivals, dampened by Curaçao’s 8% decline over the first three quarters of 2010 – a result of stringent spending limits on traveling Venezuelans, a primary source of tourism. The Spanish-speaking Caribbean continued growing however, with the number of visitors up 6% on average. Overall, stayover arrivals to the Caribbean are back to 2008 levels, said the CTO. Last year, the region welcomed 23.1 million tourists, up 4.7% from the 22.1 million who came in 2009.

“This figure takes us back to the peak arrivals levels we recorded in 2008,” said Winfield Griffith, director of research at the

Barbados-based CTO. He noted that cruise tourism registered a 6% increase for 2010, while the hotel sector saw a 1% rise in occupancy and a 5% increase in total room revenues.

“Indications are that the fortunes of Caribbean tourism are gradually changing for the better, but could take some time before experiencing robust, sustained growth,” Griffith said.

In sheer numbers alone, the region’s two leading tourist destinations are now the Dominican Republic (4.12 million tourists in 2010, up 3.3% from 2009) and Cuba (2.53 million tourists, up 4.2%). Other top Caribbean destinations are Cancún (1.39 million tourists from January to July), Jamaica (1.92 million arrivals, up 4.7%), Bahamas (1.09 million tourists from January to September, up 4.7%) and Puerto Rico (1.05 million arrivals from January to September, up 5.7%).

Ranked by passenger volume, leading cruiseship ports were the Bahamas (3.8 million arrivals in 2010, up 16.8%); Cozumel (2.56 million, up 31.8%); U.S. Virgin Islands (1.86 million, up 17.5%) Cayman Islands (1.60 million, up 5.1%) and St. Maarten (1.31 million, up 25.3%).

“There’s been an uptick in tourism. This season, the numbers were very good, and the region has gotten through

the downturn that a lot of people were predicting,” said Anton Edmunds, a Washington-based consultant specializing in the Caribbean. But he notes that the price of air tickets has gone up, so that access to the region is less than optimal.

Edmunds notes that smaller islands like Dominica, St. Vincent and Grenada “continue to lag,” and that St. Lucia,Jamaica and the Bahamas are seeing a slowdown in new tourism developments caused by difficulty in attracting financing.

Ronald Sanders, Antigua’s former high commissioner to Great Britain, is worried that the unrest in the Middle East could drag down the still-fragile recovery in the United States and Europe, source of the vast majority of tourists to the Caribbean.

“Apart from a decline in tourism, airlines have begun to slap increased fuel charges on airfares, discouraging travel from Europe to the Caribbean. The worst effect of this will be felt by tourism travel from Britain, whose government already has an air passenger duty that is higher than a similar duty on U.S. destinations as far away as San Francisco and Hawaii,” said Sanders.

“Measured by the effects of higher oil prices and costs of aviation fuel, a dramatic increase in tourism now looks unlikely this year,” he cautions.

Richard Kahn, spokesman for the Miami-based Caribbean Hotel & Tourism Association, said the cost of air travel is likely to rise around the world — not just to the Caribbean.

While he says that Jamaica, Aruba, St. Maarten and Barbados have been doing particularly well, Kahn warns that the Caribbean can forget about the 7-8% annual growth the region was used to seeing before the current downturn, especially if oil prices do not settle back down.Larry Luxner, Lois Pasternak

San Juan, Puerto RicoPHOTO BY LARRY LUXNER

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SMT opens expanded airport duty free store in Aguadilla

On Dec. 15, 2010, SMT Duty Free, the company best known for its innovative, fun-filled shops at the cruise port in San Juan, Puerto Rico, opened a new, expanded 1,300 sq-foot duty free store in Aguadilla Airport in Puerto Rico

Located on the island’s west coast in the Porta del Sol region, Aguadilla—which was formerly Ramey Air Force Base, is the second largest international airport in Puerto Rico and expects to serve about 600,000 passengers a year, says Eddie Ferenczi, SMT executive vice president.

SMT operated a small store in the airport prior to this; but has now moved into a larger facility that features an open floor plan and will carry a full duty free assortment. The older store that SMT operated is being renovated and will be operated as well.

Ferenczi, and SMT Executive Vice President Jorge Azel Jr, report that the San Juan cruise port should handle about 1.35 million passengers this year. Combined

with the 600,000 from Aguadilla, some 2 million passengers will pass through the SMT stores this year.

The cruise port saw a drop of some 240,000 fewer passengers in 2010 from the year before. Nevertheless, SMT reported that business was good in 2010, and that 2011 was beginning well.

As always, SMT works to attract as many passengers as they can to enter their stores and make a purchase – which more often than not in the San Juan stores is a bottle of spirits.

Masters of the retail-tainment philosophy, SMT started this year off running Free Salsa classes for cruise passengers in a project with Rémy Cointreau for its Passoa passion fruit liqueur. The three-day program proved to be very popular, says Azel, and was repeated with Cointreau in February.

SMT has added a few super-star products to the portfolio this year. Johnnie Walker Double Black, which was launched

as a duty free exclusive, continues to be selling very well, says Azel. SMT was the first retailer in the Caribbean to carry it.

SMT has introduced the highly-rated Ron de Barrilito, which is made in Puerto Rico in 2 star and 3 star varieties. The brand is developing a cult following but is not always easy to find. Crystal Skull Vodka is also doing very well. And Azel reports that Hennessy White is also developing a strong following.

Rémy Cointreau at SMT’s cruise port store.


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Miami-based Actium Group recently celebrated its sixth year in business – sometimes considered a critical time for many fledging companies.

But the luxury goods, spirits and beauty distributor continues to strengthen and grow:

“We had a tremendous year in 2010 – our best ever – both with strong organic growth and by recruiting new brands and territories,” Actium President Philippe Giraud tells TMI, adding that the company has been growing every year since it was started, including during the 2009 crisis.

Actium’s net sales, which include its new business, surged ahead by 179%, “almost tripling,” says Giraud. Organic growth was pegged at a more modest – but still impressive – 61% over 2009. Actium’s main business is divided into two main divisions, one covering Beverages and the other Fashion & Beauty, which is practically a stand-alone business.

Champagne, Spirits and WaterActium continues to be extremely

focused on its four main beverage brands, says Giraud.

Leading the way is Scotch whisky Whyte & Mackay, for which Actium is the agent for all local and duty free markets in Latin America and the Caribbean, as well as North America travel retail. The division also represents super-premium Voss water and Laurent-Perrier Champagne, both of which expanded their territories last year. Svedka Vodka rounds out the spirits portfolio.

In January 2010, Actium expanded its territory for Laurent-Perrier Champagne to include the North American duty free market, and now represents the brand in about 38 markets, including most of Latin America and the Caribbean, in both local and duty free channels.

“Our Laurent Perrier sales were up 109% last year in the region, a combination of both organic growth and new listings,”

says Giraud. “And we received a very nice listing for Laurent Perrier with Dufry Americas in many of their stores. That was a significant travel retail new listing for us.”

For Voss, Actium is now handling all of Latin America and the Caribbean, giving it all of the Americas except the U.S. and Mexico local markets. “Our Voss business grew organically by 43%, but it doubled with the new business,” says Giraud.

In general, Scotch sales were down somewhat in Latin America last year, due to problems in Venezuela, one of the key markets in this whisky-loving region. “Officially Scotch shipments to South America were down by 9%. But Brazil was up and our Whyte & Mackay business grew organically by more than 100%. In fact, we grew everywhere, including in Venezuela,” says Giraud of the brand, which includes The Dalmore and Isle of Jura. Giraud also reports the first travel retail listings for the Whyte & Mackay brands in the region, with International Shoppes, Dufry America and Fain & Swanson, with several other deals due to close shortly.

Svedka Vodka also had a very good year, with sales up by 83%, “although from a smaller base, with steady growth,” says Giraud.

Fashion & Beauty One major change in Actium’s

Fashion & Beauty division was the appointment of Paul Petit in October to head up the division after Hanan Fraysse left to pursue her own business. Petit, with 18 years in international management in the cosmetics business at such companies as Aveda, Cartier and Liz Claiborne brings a strong background to the role. Most recently, Petit was vice president of

Actium marks 6th anniversarywith “best yearever” in 2010

The Actium booth at theIAADFS Show highlights the spirits portfolio.

The Tumi luggage store in Mexico City.


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international at Clarins in Paris, in charge of Fragrances.

Actium reports even more development in its beauty division. Existing brands L’Oreal and L’Occitane both had very healthy increases, expanding territories and in the case of L’Oreal, new brands. Actium took on L’Oreal’s The Body Shop last year, and has successfully opened in Mexico with UltraFemme.

In an important new addition, Actium is now handling the cruise business for the Puig fragrances.

“Actium has a strong expertise in the cruise sector and Puig’s cruise business has increased 40%,” says Petit. “We now have the Puig brands on 30 ships – with Harding Brothers, Starboard and Dufry’s Flagship – with new openings all the time. The cruise business is very detailed work, that entails constant attention,” says Petit.

In another important development,Actium’s Fashion & Beauty division also began working with Juicy Couture, concentrating on inflight for the trendy fashion accessories.

Juicy Couture is currently being tested onboard Delta, through DFASS, and has been listed on LAN. “We understand the DNA of the brand and are working closely with Juicy Couture’s Galia Sandres,” says Petit.

When Actium acquired an agency agreement for premium luggage brand Tumi that went into effect in January 2010, the company knew this was an opportunity

to grow the business for both companies. The agreement covers Latin America and the Caribbean, local markets and travel retail; as well as North America travel retail.

“The business grew 49.8% in 2010, and this was all organic growth, balanced between North America and South America,” says Giraud. For 2011, Actium will be working with Tumi on the assortment and is looking at opening some free-standing stores and shop-in-shops, particularly in Mexico and Brazil local markets.

Luxury RetailActium’s Luxury Retail division is

currently made up of two Hermès stores, a 5,200 sq-foot boutique in Santiago, Chile that Giraud acquired in 2008; and a 160 sq-foot boutique that opened in Panama’s

upscale Multi Plaza Mall in Panama in December 2009.

The Hermès business in Chile – which stayed strong throughout 2009 – was up by 31% in 2010. The Panama store, which is a 51/49 partnership between Giraud and Faisel Abbas of St. Honore, has not been open long enough to have comparable sales.

“We are the only company in Latin America and the Caribbean authorized to have multiple doors,” says Giraud, commenting that the relationship with Hermès has opened many doors for the company.

“We are looking at expanding this division, looking at some other opportunities for Hermès as well as looking for some other high-end retail brands,” says Giraud. “Luxury Retail continues to fit right in with our strategy.”

The Actium co -owned Hermès Boutiquein Panama opened in December 2009.

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Crystal Forest:A complete makeover for select Swarovski Boutiques

Some 10 years after introducing its well-known Red and Blue retail concept, crystal specialist Swarovski is rolling out a revolutionary new look to select boutiques worldwide, including the Americas. Shimmering with crystals and light, the new look is much more closely linked to the identity of the brand and perfectly displays the crystal jewelry, fashion accessories and home décor objects in a manner that has avidly been embraced by consumers, says Gonzalo Almada, Swarovski Director for South America

With 40 of the Crystal Forest boutiques already open worldwide, Almada says consumers really seem to love the concept wherever it has launched. “The look uses a lot of glass and crystal and when you enter the boutique, you have a really good view of the collection,” he tells Insider.

In addition to rolling out its new look to selected stores, Swarovski restructured its operations in the region this year. The main change being that the Caribbean operations have been integrated into South America, with Nelson A. Rivera, Regional Sales Manager for the Caribbean & Mexico Travel Retail reporting directly to Almada, rather than to Europe as had been the case previously.

The division, which is headquartered in Miami, also comprises five subsidiaries – Chile, Argentina, Venezuela, Mexico and Brazil—and a second Regional Sales Manager covering Direct Markets, explains Almada.

While each country entails some different approaches, overall for the region

Almada says that the focus this year is on distribution strategy and the market landscape.

“One of the biggest challenges in Latin America for a company like ours is to find the right distribution. The region has a lot of potential, but if you look at a market like Brazil, which is an amazing market, you see it is very difficult to cover. Brazil has so many millions of people who can afford our products, but they are spread throughout the country and how can you reach them? You don’t have department stores. So we have to find the right distribution. This is the same challenge in the rest of the region. Mexico is another example. So we are doing a lot of studies throughout the region, and we are moving forward.

“And the business has been growing a lot over the past four years, so we are adjusting our structure to the market needs. We are hiring more people, especially in Mexico and Brazil,” said Almada.

Swarovski is also introducing new categories this year, like the eyewear collection from Marcolin and a perfume, developed with Group Clarins. “I am sure these are very promising and our consumer will really like them very much,” he said.

“We are a very unique case. It is very rare for a company to own the material it is made from. When you think of a crystal, the name Swarovski immediately comes to your mind. Nowadays the market is so competitive, and while we have some competitors in the fashion jewelry area, we do not in the crystal.”

Crystal Forest is very important to the company this year. “We just opened the first boutique in Mexico in February, but we have another 67 projects in Latin America to open this year, divided between boutiques, shop-in-shops and corners. We also have 10 Crystal Forest projects in the Caribbean and Mexico Travel Retail markets. To handle all these new projects, we are opening an architectural department in Miami. The corporate team in Europe develops all the boutiques for us, but it is the regional team that takes care of the follow-up. Each boutique is its own project and needs its own follow-up.”

Almada reports that Swarovski had a very good year in 2010: “2009 was a great year also for Swarovski. In Latin America we have been growing for the last 4-5 years, even though in North America we suffered a little more, but overall business for the company the last four years has been really good. We did not have to face what many other companies had to face, probably because our product is so unique and because Swarovski is more affordable and we attract many different consumers. So we went through the crisis very well. We are very proud of how we went through this but when you face a storm, you have to do something about it. So we have come up with this new scenario, and have come up with new collections, and Latin America is the region that has been growing faster than any other region the last three years. The brand is growing stronger and stronger in the region and we have very strong expectations for 2011 and 2012.”

Swarovski is rolling out its Crystal Forest concept, a revolutionary new look shimmering with crystals and light, to select boutiques worldwide, like this one in Santa Fe Mall, Mexico.

One on One withSwarovski’s Gonzalo Almada, Director for South America &Nelson A. Rivera, Regional Sales Manager for the Caribbean & Mexico Travel Retail


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An Exclusive Retail Design: ‘A Crystal Forest’Swarovski joined forces with Design Miami, ‘Designer of the Year’ award winner Tokujin Yoshioka to create its stunning new retail architecture, the “Crystal Forest.” Fascinated by the energy and life-giving properties of light, Tokujin Yoshioka created a multi sensory experience in the Crystal Forest. His vision unites multimedia with light and crystal to form an atmosphere totally in tune with Swarovski’s brand identity.

The concept highlights the infinite possibilities of crystal, including illustrating the luxury of crystals.

Inside the boutique, all walls are textured with reflective white relief prisms of various lengths.These faceted, multi-layered elements create visual depth and feature an interplay of both vertical and horizontal showcases that are integrated into the relief walls. Lighting is a key feature of the new architecture, which uses state-of-the art technology to create a soft ambience within the boutique through indirect light, and the gleam from LED illumination in the showcases that highlight the crystal figurines and jewelry

A key element of the new design is the Chandelier, made up of cut acrylic and geometric ‘icicles, backed by an LCD screen. Crystal masterpieces are displayed in the windows and on moving displays throughout the boutique. These ‘floating stages’ bring the pieces to life as they reflect a myriad of rainbows with every movement.Swarovski opened its first flagship ‘Crystal Forest’ concept in Ginza, in Japan in March 2008.

Swarovski continues to experience excellent growth in the Caribbean and Mexico Travel Retail as well, recounts Nelson Rivera. “We have been very busy in the region and our business grew by 30% in 2010, with fashion jewelry being very well accepted.”

Rivera says that Swarovski opened eight branded mono-boutiques at the end of 2009 – three in Mexico Duty Free and five in the Caribbean – and completed 15 retail upgrades over the past year. In a key development, luxury Caribbean duty free chain Little Switzerland – which carries Swarovski in 16 stores -- doubled the space in 2010.

Expansion revs up again this year: Ten Crystal Forest projects are planned for 2011 in the Caribbean region. “We already opened a Crystal Forest concept in the Blue Mall in Santo Domingo in March and are finalizing the design for a Crystal Forest concept in the San Juan Airport in Puerto Rico with Dufry. We are also opening a corner at the Hard Rock in Punta Cano, a corner with Dufry in its new duty free store at the cruise port of Puerto Maya in Cozumel (this month) as well as new projects in St. Maarten, among others,” says Rivera.

Swarovski’s ladies watches, which were added to the portfolio two years ago, were also launched in the new Island Time store in Philipsburg in St. Maarten, where they are doing very well. “We are getting a lot of interest in the watch line, especially in the Caribbean,” says Rivera, adding that the company has some very interesting opportunities under development at Basel this year.

“We are always looking for good opportunities at airports and cruise ports.

As a modern luxury brand, we are careful not to over-distribute. We focus instead on increasing our business in the stores where we are already operating.”

Swarovski’sCaribbean/Mexicanbusiness soars by 30% in 2010

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Bijoux Terner, the popular one-price gift specialist that has successfully brought its high-value, low-cost concept to travel retail venues around the world, will be unveiling a number of significant new concepts – and two new brands – at the Duty Free Show of the Americas. Bijoux Terner CEO & President Gabriel Bottazzi says the new offerings have been testing with select customers to excellent response.

Although Bijoux Terner is best known for its $10 retail price in the U.S. market – products sell a little higher in other countries-- the company is first about fashion trends and value, not price, says Panos Argyros, vice president of global sales operations. “We have design, fashion, being on trend, all the infrastructure to execute consistently and to always have the on-time fulfillment. In all those price-points we have the high value/price relationship.”

Its greatest strength – the high perceived value of its budget priced merchandise – has also been its greatest challenge. The company tried bumping up the Bijoux Terner price point to $15 following extensive research that indicated

shoppers consistently perceived the products at higher values. But the change was adopted at the same time that the economic crisis took hold, and when sales started slipping, Bottazzi immediately reinstituted the original pricing.

Maintaining that $10 price while jealously guarding the quality and style for which Bijoux Terner is known has, not surprisingly, put significant pressure on margins. But having experienced consumer resistance to tinkering with the Bijoux Terner price formula, the company decided to introduce two new price points under new brand names.

Voux (pronounced voo), a $20 brand, and X’est Jolie, at $30, will officially debut at the IAADFS Show.

“We are very excited about this. We have been testing the new lines with some of our partner customers for about eight months now, and we have not been able to make enough product because we under-planned the sales. Demand exceeded expectations,” says Bottazzi.

The original testing took place specifically with some of Bijoux Terner’s

Not only is Bijoux Terner unveiling two new brands and price points, but it is also launching a new concept in merchandising to its retail customers.

Lina Henao, Bijoux Terner CCO explains: “This time we wanted to move on to the next level. We are introducing mannequins, which is totally new to the Bijoux Terner concept. This will enable us to interact better with our customers, because we need to explain how to play with fashion.

“Now, instead of saying,’wear a stack of bangles,’ the consumer can see them on the mannequin. In this way we are moving into a new level of merchandising. We can have an aisle of mannequin displays combined also with our back walls with all the merchandising. We are planning on having those two things together. This is the concept we will be launching in Orlando.”

Bijoux Terner is receiving a lot of very positive feedback from the sales team about the new concepts, says Henao. On display in the company’s Inspiration Room, where the new trend concepts are shown to retail customers, Henao used these mannequins adorned with Bijoux Terner’s five major trends for this season. Using the mannequins will be a break through: five different mannequins in five different positions. Each mannequin has different space allocations, and tells a different story.

Bijoux Terner steps out with new merchandising

Bijoux Terner to launch new brands and merchandising concepts in Orlando

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cruise industry partners, but the company will be showing the new lines to all its partners at the Duty Free Show.

Bottazzi emphasizes that the company is not walking away from Bijoux Terner, but rather putting itself in a position to cater to some channels it has not been able to enter with its lower priced merchandise: “Our Bijoux Terner brand—our $10 price point – continues to be extremely sexy and powerful for us and we continue to be very focused on that. But there is incremental business to be had. There were channels that we were missing because we didn’t have enough value at $10. But now, when we are bringing in products that are worth $60-80 in the normal market and sell them at $30, that is powerful,” Bottazzi explains.

In fact, Bottazzi points out that the company is taking the same concepts of incremental value and product variety and assortment, for which Bijoux Terner is well known, and upgrading them into the new price points.

“In our Inspiration Room we have Pashimas that have leather fringes or are made from jacquard. We have woven silk ties with matching cufflinks, instead of just the printed silk. When you bring all those real product details that you find in high-end department stores and put them at a $20 price point, or $30 price point, and you package them in a way that is very high-end and very exclusive, when you present it this way, the products blow out the door.”

With the worst of the crisis apparently past, and travel numbers recovering strongly, the market may be more receptive to the new brands.

Bijoux Terner’s business is now very good, says Bottazzi. “The cruise industry is booming. South America is just exploding. The U.S. is stable. And Europe is actually showing interesting signs. We like what we see – in some places (Las Vegas

continues to lag). And we have outstanding relationships, outstanding business, great distribution, great locations. The Caribbean is doing very strong business for us. The numbers in our comp stores are very positive.”

Bottazzi credits the company’s good operators and partners for the positive results, but adds: “We have also done a lot to support our products and assortments, and our price point continues to be very powerful. Now more than ever.”

“I think that we have learned that there is an important element of our business model and it is not necessarily the specific price point. Rather, it is that there is value in the price point. Whatever the price point is, today’s consumer is looking for a lot more value than the price they are paying.”

Bijoux Terner intends to keep delivering this value, even as it is expanding to different price points, says Bottazzi.

“We are not one company, one brand, one price. We are one company with multiple brands that will make all of our clients successful. That’s who we are going forward.

“We are using all the learning that came with this great, wonderful Bijoux Terner brand. We are using all the same principals, the same supply chain, the same design process. Because design is not just a matter of having good taste, design is understanding what will sell. The challenge for our great designers is really to understand how to do research, how to plan a calendar, how to choose the key materials that are out there.

“We are having an amazing conversion ratio. Once consumers walk in and they “get it,” they don’t walk out with empty hands. So we are always finding ways to help our partners get consumers in the store. Once they are in, it’s done.”

Bijoux Terner is introducing five new trends this season, some of which are shown here, such as the 70s, the romantic, the minimalist. The company is also investing in customized A La Gate Carts(l) to help attract shoppers into their stores.

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The Yellow House (La Casa Amarilla) in Curaçao, the flagship perfume store of the La Rouge group, just finished a major renovation of the store, which is located only steps from the famous Queen Emma pontoon bridge that connects Punda to Otrabanda in historic Willemstad.

“We converted the store completely to self-service and made several structural changes to provide more usable floor space,” reports company director Meena Hemrajani.

“The change permitted us to accommodate more lines, as well,” she says. The Yellow House features personalized counters for Clarins, Guerlain, YSL,

Christian Dior and Sisley. The Yellow House is the only retailer in Curaçao to carry the exclusive Sisley line. The Yellow House is also the only shop to carry Christian Dior cosmetics in the downtown area.

Hemrajani reports that the shop has also begun carrying the H2O line, which is exclusive to them on the island.

“H2O is presented in a beautiful customized gondola, and has been doing very well. The brand is commercially priced and the products give very high value,” she notes.

Other top sellers in the perfume category for The Yellow House are the Carolina Herrera brand, which is having a record breaking year; Paco Rabanne, Shakira – both the women’s and the men’s version, and Antonio Banderas, all from Puig.

Yellow Houserenovates flagship shop in Curaçao

“Tous Curaçao has entered its 3rd year, building its loyal customers and growing positively each year,” says Meena Hemrajani, director of La Rouge, which operates the store in Willemsted. This past Christmas season, Tous Curaçao won the designation of “Best Window” in downtown Willemsted for its Make a Wish window, shown at left.

Currently Tous –producers of the famous Spanish jewelry and accessories line sporting the world-known bear emblem--has more than 400 stores in 42 countries around the globe, including over 20 stores in the U.S. since 2002. Last year Tous opened in Rockefeller Center in New York City.

According to Hemrajani, the Tous brand recently announced it would launch an exclusive collection that reproduces the world’s most famous shoe, Manolo Blahnik. In this exclusive collection, the famous shoe has been turned into a pendant and will be available at POS in major world cities and luxury shops around the globe starting in March.

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The Americas Travel Retail market now has access to a bright, affordable, award-wining casual timepiece with a difference from Lambretta, one of the brands from Capella Industries of Sweden. Cielo is represented in the Americas market by HananFraysse’s Luxury Consulting company.

Cielo (Italian for heavenly) is the latest addition to Lambretta’s ladies collection. The slim and stylish watch comes in seven attractive colors and is accessibly priced.

Winner of Frontier magazine’s Buyers Forum in April 2010, Cielo is earning excellent sales wherever it has launched in the past year, reports the company.

The watch comes in an amazingly slim package only 250x50x10mm in size, and weighs only 52 grams, making it particularly appropriate for inflight sales. Cielo’s ultra-slim and color-coded “revolutionary” packaging allows airlines or shops to store three boxes where normally only one traditional box would fit.

For duty free stores, cruiseships, etc., Capella has developed a space efficient, eye-catching “free access display” that is able to stock all seven Cielo colors.

Cielo has a recommended retail price (RRP) of €60/US$75 and a travel retail price of €45/US$56.

Lambretta’s Cielo Watches, from Capella Industries, is debuting in the Americas Travel Retail market through Hanan Fraysse’s Luxury Consulting company. Fraysse, a recognized international marketing and business development expert with a combined 20 years experience with some of the world’s top luxury brands, brings a unique set of experiences to her consulting services, with expertise in travel retail, the cruise sector and global marketing.

Working under the concept that Retailis detail and understanding that brandscan have different needs, her company is divided into two divisions, which she terms Retail is Detail and Expand.

“Clients might need an agent, which is a third party who would develop their business in return for a commission, or a client might need someone who just helps him place a development plan, for example to enter a specific market. Luxury Consulting is able to provide either of these services, be it a project-based development plan, or an agency, or even a distributorship agreement,” explains Fraysse.

“There are some brands where I can be an added value for them in a specific territory to bring in a specific brand. I can

determine what human resources structure they need to have; or what the clients in that territory need to have in order to enter the market. These are short-term projects. The client is buying your expertise on a short-term basis.”

Fraysse explains that the other division is the Retail is Detail portion, where she is representing a state of the art technology that is based on understanding the in-store activities of consumers.

“The technology looks at everything from penetration rates, conversion rates, average baskets, what we call heat maps, all based on understanding in-store customer activity and behavior. This information will eventually help the marketing team to get a better understanding of marketing and merchandising needs in-store. And this would be critical knowledge in category management,” says Fraysse, who is responsible for developing the technology in the travel retail industry.

“This is a state-of-the-art technology, and is used by a lot of brands, department stores, leading retailers and many major multinational companies.

“I believe that the travel retail industry today really lacks a lot of information about

the customer behavior and how much the consumer is buying for and how much time he is dwelling and looking at a specific brand or a specific fixture in a store. Just getting a better insight into this kind of data would definitely help the retailer and the brand have a better understanding of their business. This results in better product offers, better communication, revenue management, stock management and even staff management,” says Fraysse. For more information about how Luxury Consulting might help your business, please contact Hanan Fraysse at Tel:+1-305-984-8414| [email protected]

Luxury Consulting brings Retail is Detail expertise to travel retail

Cielo (Italian for heavenly) is the latest addition to Lambretta’s ladies collection. The slim and stylish watch comes in seven attractive colors and is

magazine’s Buyers Forum in April 2010, Cielo is earning excellent sales wherever it has launched in the past year, reports the

The watch comes in an amazingly slim package only 250x50x10mm in size, and weighs only 52 grams, making it particularly appropriate for inflight

Sweden’s Capella Industries enters Americas travel retail market with award-winning Cielo ladies watches from Lambretta


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P l e a s e c o n t a c t : L u x u r y C o n s u l t i n g – h f r a y s s e @ l u x u r y c o n s u l t i n g . u s o r c a l l : 3 0 5 - 9 8 4 - 8 4 1 4 .

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Luxury watch brand Philip Stein opens boutique in Grand Cayman; will open in Jamaica’s Falmouth this summer

The second Philip Stein Watch Boutique in the Caribbean opened in Grand Cayman in February in partnership with Island Companies, reports Philip Stein agent in the Caribbean Haygo Demir.

The first Boutique for the luxury watch brand, which embeds natural frequency technology in each of its time pieces, opened in 2009 in Cozumel with Diamonds International in the Forum Shops, says Demir. Both boutiques were designed and built by Artco Group.

Coming up next, a Philip Stein boutique will also open in the newly renovated cruise port at Falmouth, Jamaica sometime this summer.

Although ships began calling on the newly renovated port in Jamaica on February 17, the shops in the port are not expected to open until this summer. Falmouth, which just underwent a $150 million facelift funded by the Jamaican government and Royal Caribbean Cruises,

is viewed as “a lifeline of sorts” for Jamaica’s tourism, says Demir.

The new port will give Jamaica an international presence, with Diamonds International and Dufry’s Colombian Emeralds both scheduled to open for the first time.

“This will make Jamaica a more credible shopping destination, although the new stores might give some of the local operators a run for their money,” he commented.

The Diamonds International Philip Stein Boutique, located at the Forum Shops in Cozumel. Right. The Philip Stein Boutique opened last month in Grand Cayman with Island Companies.


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Party goers in tropical Grand Cayman had to bundle up warmly to attend a once-in-a-lifetime event held by Robby Hamaty of Tortuga Rum Company in February. The party, which was put together to promote Stoli’s top-of-the-line vodka product, Elit, which is relatively new to Cayman, and represented by Tortuga, was an ice party and it was held in a freezer.

It was a really big freezer, says company founder Robby Hamaty. The Grand Cayman-based Tortuga Rum Company had recently built a 27-foot by 70-foot walk-in freezer for one of its other businesses. When a new promotional company called ‘Over the Top’ wanted to launch themselves with a signature event, Tortuga delayed the switch over of the freezer for a few weeks in order to hold the party.

In warmer news, Tortuga has become the exclusive retailer in the Caymans for Sharper Image, and is installing the merchandise in several of its Grand Cayman stores, including at its Taste of the Caribbean store in the airport, at its store at the Royal Watler cruise pier, at its Turtle Farm location and at its main factory store, which is a popular tourist destination. Hamaty says he will open a stand alone Sharper Image store as well.

Tortuga is also the exclusive Bijoux Terner retailer on the island, and he reports that the brand is doing exceptionally well.

In an important development for the Cayman Islands, Hamaty reports that the island is waiting for the “go ahead” to finally construct a two finger cruise pier that will be able to accommodate four ships. At this time, Grand Cayman is still tendering passengers into the island, with no direct docking. Hamaty says that it will be at least a year and a half until the project is completed.

“If we continue to have tendering, we are going to lose tourists in a big way,” he commented.

Tortuga holds an Over the Top Stoli ice party in Grand Cayman

Tortuga Rum Company founderRobby Hamaty at the Stoli Elit ice bar constructed for apromotional party held inside a huge walk-in freezer in Grand Cayman last month.

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Beauté Prestige International is this month celebrating the global launch of the newest feminine fragrance from American designer Narciso Rodriguez, who personally presented the new fragrance to select international media at a reveal event in Miami last fall.

essence eau de musc is a light-imbued, sophisticated eau de toilette that evolved from and was inspired by Narciso Rodriguez’s award-winning essence fragrance launched in 2009. It features fresh citrus top notes that join with the powdery heart of white musk and iris mist. The airiness of the new scent is reflected in a slimmer, longer metallicized bottle described as sylph-like.

Christophe Fabrega, who recently joined BPI’s Parfums Narciso Rodriguez as Vice President following six years as Director of Marketing International Development for Chanel, said that Miami represented ‘Light and Purity,’ “which is the heart of essence.

“The Narciso Rodriguez fragrances are designed to create a special moment with a small group of people, they do not shout,” Fabrega told Travel Markets Insider during a private interview. “These are true luxury products. What you see outside is the truth from the inside.

“Our initial Narciso Rodriguez fragrance, For Her, was created in 2003 with the original essence not following until 2009. Narciso Rodriguez is the soul of the company. Our ambition is to make Narciso Rodriguez a major player in the perfume industry, creating great and modern fragrances that are inline with the Narciso Rodriguez fashions. With essencewe are creating a new benchmark and the momentum is building for the brand with the reviews.”

For Her and essence have won 10 awards worldwide, and are completely in line with the spirit of the house, says Fabrega.

“The name essence communicates the importance of the name to the house of Narciso Rodriguez. And musk is a special ingredient in For Her and in essence, as well as in eau de musc. So we incorporated musc into the name.

“The musk element reflects Narciso’s clothing designs. Musk expresses femininity, true elegance, something very classic, and when you look at Narciso’s fashion, you immediately see the link. His fashion is very elegant, very chic, and very soft and sentile. To me musk is the real link between fashion and fragrance.

“Musk is at the heart of all the Narciso Rodriguez fragrances. The initial

idea behind For Her was an Egyptian musk. Narciso found a little bottle with a drop of this oil inside. This was his inspiration. Narciso was able to give the perfumers this bottle with the oil inside, which was fantastic. With essence, we used a white musk, which is one of Narciso’s favorite fragrances.

“There are many, many varieties of musk. The art is to choose the right musk for the right fragrance. eau de muscis very fresh for a musk fragrance. The idea is to create a tension between the sensuality of the musc and the freshness of an eau.”

With these fragrances as a base, Fabrega says that the company is looking to the future.

“We are looking at the long term development of the brand by concentrating on our main pillars. We have our core business with For Herand then slowly but surely we developed essence. We are not in a hurry. We are taking our time to develop the business. It took us more than two years to develop eau de musc after essence. We do not want to confuse our consumers.”

CREATION OF A FINE FRAGRANCE

American designer Narciso Rodriguezreveals Light, Purity and a touch of muscOne on one with Parfums Narciso Rodriguez’ Vice President Christophe Fabrega

ParfumsNarciso Rodriguez Vice President Christophe Fabrega and Desigher Narciso Rodriguez at the unveil of essence eau de musc in Miami.


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Gerard Pichon-Varin, who joined Beauté Prestige International as General Manager of the Miami office in 2008, brings a strong background in luxury fragrances and accessories to the role, having held senior positions in Europe and the Americas with, among other companies, Sanofi Beauté, Guerlain and Boucheron, where he was President of the U.S. subsidiary in New York.

At the helm of a company that is 100% involved with fine fragrances, Pichon-Varin sees the main challenge facing his company as one of continuing to grow its market share in the region, both in travel retail and in the Latin American local markets.

Says Pichon-Varin: “Travel Retail was most affected by the crisis of 2009, so our first challenge had been to come back. For us, 2010 was a fantastic year. Globally, BPI increased its business significantly and passed the 2008 figures, which were very strong. The Travel Retail sector has also improved, although it has not yet passed the 2008 numbers — but it will.

“In this region, the Latin American local markets are driving the recovery. Even during 2009, these countries maintained market share and some places showed small gains. Our sales have been growing for the past 4-5 years. Our challenge is to keep this growth going. We

are being helped by some very strong local markets, specifically Brazil, Argentina, Colombia, and even Venezuela.

“Issey Miyake, for example, is very strong in the Latin countries, a top 10 brand. L’Eau d’Issey Pour Homme is a top 5 brand in the local markets.”

Pichon-Varin points out that Travel Retail is an important part of the BPI business in the Americas, more so than in many other parts of the world: “The way our brands are worked in the local market makes the success in Travel Retail. At the same time, airports are windows for our brands into the local market.”

The strength of BPI’s core lines is the company’s biggest opportunity for the future. “L’Eau d’Issey, L’Eau d’Issey pour Homme, and Jean Paul Gaultier’s Classique for women and Le Male for men, which have been top sellers for more than 15 years now, along with Narciso Rodriguez’s For Her, are the pillars that will grow our business. They are classics and we are very careful to nurture and maintain them – with animations, with special limited edition collectible editions. These encompass our values,” he says.

“The BPI values are based on building long-term relationships with our designers, to make them successful in fragrance by using a very qualitative and innovative approach in the creation and the marketing

of the products. The path that we follow at BPI is very clearly defined for us—to animate and promote our pillars and only introduce new fragrances when it is appropriate.”

This year, BPI will be introducing a new brand into the portfolio, the first fragrance for world renowned Lebanese designer Elie Saab, the Haute Couture designer known for his romantically beautiful gowns. BPI signed a license with Saab in 2009 and this fragrance will launch worldwide in early fall.

“This is the particular know-how of BPI, who has a history of identifying fashion designers with whom we have these common values and developing modern successful fragrances with them over the long-term,” says Pichon-Varin.

BPI will be giving visitors to its booth in the Atlanta Room at the Duty Free Show in Orlando a sneak peek of the new Elie Saab fragrance. The company is returning to the Show after an absence of several years: “It makes sense for us to be here now,” says Pichon-Varin.

“Each of our designers represents a specific part of the world,” he says. “Elie Saab is from Beirut; Issey Miyake is from Japan, Jean Paul Gaultier is from France and Narciso Rodriguez is American/Cuban. But each one is an icon in his particular field.”

Gerard Pichon-Varin, General Manager BPI, The Americas TR & Latin America Local Markets

For BPI, the product is always the hero, says Fabrega, explaining that worldwide, Narciso Rodriguez perfumes are in only 6,400 doors out of the 22,000 doors available in selective distribution.

“So we are in very limited, very selective distribution. We have consumers who love the fragrance and our staff is comprised of passionate, well-trained

sales people, who know how to speak about the fragrance.”

One way that BPI is working to develop the brand is to relate it to special experiences, so that the consumer feels an affinity for the brand and for the fragrance, explains Fabrega.

In a special initiative to prepare the market for the launch of Narciso’s new fragrance, BPI established VIP lounges in strategic airports in Paris, Milan and London. The lounges were located in an open space in the airport, post check-in, arranged with sofas and tables as a place where people could relax, and be introduced to the fragrance.

Fabrega explains: “We still have to recruit new customers and make them know that the brand exists. These lounges created awareness of the Narciso Rodriguez brand in a non-traditional, non-aggressive way using an intimate and inviting setting. We invited consumers to

smell the fragrance, to discover Narciso, and to share a moment with us, without saying “Buy it now.”

Despite its non-commercial design, Fabrega says that people had such a positive experience in the lounge that afterwards they went to the Travel Retail shop and bought the brand. “The sell-out of our existing fragrances increased dramatically. In Paris, during the time the VIP lounge was set up, the sell-out rose by 255%.”

Narciso’s international appeal is strong and growing. Italy is the top local market for the brand globally and the Americas is an important market. In local markets, Brazil is #1, followed by Venezuela, Peru and Argentina. In Travel Retail, Brazil and Argentina are the top selling markets. In the U.S. Travel Retail, some areas are stronger than others, such as at Miami International Airport, for example, reports Regina Lopez, Brand Manager at Beauté Prestige International, in Miami.

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Miami-based distribution company Essence Corp. has been tapped for several significant additions to its Caribbean portfolio over the past few months, which added several prestigious brands to business.

In November, it was announced that the company was assuming the exclusive distribution of Hermès Parfums products in the Caribbean, effective Jan.1, 2011.

“Hermès Parfums is delighted to partner with Essence Corp. which will allow the Hermès brand to further expand within the Caribbean Islands territories,” said Catherine Fulconis, chief executive officer of Hermès Parfums, in a letter signed by Fulconis and Essence Corp. president, Jean-Jacques Bona.

In December, Beauté Prestige International (BPI) announced that it was changing the way it would be distributing its brands in the Caribbean. Instead of continuing to handle the territory in-house, BPI appointed Essence Corp. to be its distributor in the region.

The change, said BPI General Manger Gerard Pinchon-Varin in a letter to customers, would “improve our mutual business and the efficiency of our supply chain.”

He went on to add: “The professionalism and integrity of Essence

Corp. are a guarantee for the success of this decision.”

Essence Corp. continues to make news with its core existing brands as well. Under Clarins Fragrance Group, Thierry Mugler’s innovative Womanity fragrancehas been rolling out with major animations and HPPs throughout the region, as shown above.

Clarins Fragrance Group is also behind one of the most anticipated fragrances of this year, the first fragrance from crystal house Swarovski, called Auraby Swarovski.

Aura by Swarovski will be available starting this Fall in the Caribbean and Canadian duty free markets and in 2012 for the U.S., Central American and Latin American duty free markets, but visitors to the Essence Corp. booth in Orlando will be able to sample the scent. This scent, which has been described by the creators as having captured “the grace of light” in a fragrance, echoes the way in which a cut and faceted Swarovski crystal captures light.

The Eau de Parfum comes in a refillable jeweled case. The Aura by Swarovski line also includes a perfumed body collection and crystal makeup jewels.

With his latest feminine fragrance, Womanity, designer Thierry Mugler appears set to break as many rules as he did with his now iconic Angel, which ushered in the original gourmand scent. Each element of the project—the juice, the bottle, the technology, even the theme, is an innovation. Essence Corp. rolled out Womanity through the Americas last fall. Shown above, the launch in Grupo Wisa’s La Riviera stores in Mexico City Airport (left) and Panama (lower right.)

Essence Corp. enhances portfolio with prestigious brand additions

“The creation of Aura by Swarovski fragrance required about 2,000 tries before we found the right formula and Swarovski remained fully involved in the process, from start to finish. Aura by Swarovski: all the grace, the magic, the magnetism and the energy of light transform a woman. Crystalis transformed into liquid energy to become luminous fragrance.”Joël Palix,President of Clarins Fragrance Group


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Kiehl’s garners awards, new shops as it rolls out across the Americas

After opening 1st door in South America last month, the award-winning concept will open next with DFA in the airport in Salt Lake City

Kiehl’s Since 1851, the venerable New York-based purveyor of high quality skin and hair care preparations, is rolling out across the Americas. Last month Kiehl’s opened it’s first travel retail store in Buenos Aires Ezeiza International Airport in Argentina.

Next up, Duty Free Americas, Inc. (DFA) will operate a 172 sq-foot Kiehl’s store in the international terminal of Salt Lake City International Airport (SLC), as part of the concession it announced in mid-March. The SCL location is the fourth U.S. airport store for Kiehl’s. DFA operates Kiehl’s stores at New York JFK and Miami International Airports. HMSHost operates the Kiehl’s store at Hartsfield-Jackson Atlanta International Airport.

The opening of the 160 sq-foot Kiehl’s shop-in-shop at Ezeiza Store 22 marks the company’s first step into a South American airport. Like the other airport locations, the Ezeiza shop features Kiehl’s signature fun apothecary aesthetic and its unique design and decorations show off the blend of cosmetic, herbal and pharmaceutical knowledge for which the brand is known since its founding in 1851.

Among the signature design touches are a modern bronze and crystal chandelier. This is an updated take on

the crystal chandeliers that have adorned the Kiehl’s flagship store in New York City for years. Each store also features vintage photographs and mementos that take customers through Kiehl’s rich family history, and replicated exposed brick wall that evokes the old-world, quality character of Kiehl’s in its original East Village neighborhood.

Kiehl’s at ATL wins “Best New Retail Concept” from ACI-NA

The Kiehl’s Since 1851 store at Hartsfield-Jackson Atlanta International Airport, which was opened by Parbel of Florida in association with HMSHost in 2009, was awarded “Best New Retail Concept 2010” by the Airports Council International for North America this past November.

“The competition was fierce but Kiehl’s successfully demonstrated its strong principles in providing efficacious products, excellence in customer service, quirky merchandising and impeccable brand image,” Gabriela Rodriguez, Division Manager of Kiehl’s at Parbel told TMI.

The award was received by Jim Schmitz, Vice President of Merchandising and Retail Concepts at HMS Host, the store operator at ATL.

The Kiehl’s store was also ranked as “Best Shop of the Month” in the Hartsfield Airport by the Atlanta Airport Authority this past September, says Rodriguez.

“I want to personally thank all the team at HMSHost as well as the forward-thinking airport authorities who believed in our innovative concept and strong sales potential,” she says. “We are pleased to see Kiehl’s receive more and more recognition amongst its peers and travel industry leaders.”

Kiehl’s in Atlanta

Kiehl’s in Ezeiza Airport, Buenos Aires

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Lancôme has signed actress Emma Watson as its newest ambassadress, the company announced on March 14.

The young actress, 20, rose to fame in her role of Hermione in the Harry Potter films. She joins Julia Roberts, Penélope Cruz and Kate Winslet as representatives of the beauty brand.

“Thanks to her charm, romanticism and her incredible modernity, Emma Watson has become the icon of her generation,” said Youcef Nabi, president of Lancôme International.

“We are delighted by this new collaboration with Emma who brings a fresh spirit to Lancôme.”

Lancôme names Emma Watson new Ambassadress

Giorgio Armani has tapped Megan Fox as the new Code woman, premiering in the new advertising campaign for the launch of Armani Code Sport in March. The new men’s fragrance, created by Giorgio Armani for the Code saga, will be on counter June 2011.

Dressed in an Armani sequin gown, Megan Fox embodies the sensuality and mystery of the Code woman with her luminous pale complexion and deep red lips, says the company.

“The signature red, Rouge d’Armani 400 and Luminous Silk Foundation N° 2 add smoulder to Megan Fox’s porcelain skin,” explains Linda Cantello, Giorgio Armani International Make up Artist, the talent behind Megan Fox’s fascinating look. “Her look is drop dead seduction.”

Armani taps Megan Fox as the new Code woman

Visual for Armani Code Man

Giorgio Armani launches Acqua for Life challenge, a global solidarity campaign

Giorgio Armani has launched a global information campaign to raise people’s awareness of the scarcity of water and the associated problems for people who do not have ready access to this ever-more precious resource.

Launched globally on March 1 on twitter, among other platforms, “Acqua for Life” will reach its height on March 22, World Water Day, which was initiated by the United Nations following the Rio de Janeiro Summit in 1992.

The goal of the Acqua for Life challenge is to provide a minimum of 40 million litres of drinking water this year to populations in need. Nine hundred million individuals do not have access to safe, clean and healthy water for their daily needs—water that is essential for drinking, eating, guaranteeing a minimum of hygiene and maintaining one’s health.

When Giorgio Armani decided to become involved, he wanted to “tackle

the problem at its root.” Long aware of the work carried out by Green Cross International, which strives to meet the interdependent global challenges of peace-keeping, reducing poverty and preventing environmental degradation, Giorgio Armani offered to make two of his most famous fragrances, Acqua di Giò and Acqua di Gioia, the vehicles for the “Acqua for life” campaign. As of March 1, 2011, every bottle sold will generate a donation of 100 litres of drinking water per year to children and their communities. The participants will then be invited to double their donation of 100 litres of drinking water by going onto the internet. A unique code per carton will allow each person to become a member or founder and create his or her own support group for this operation.

The facebook application - www.facebook.com/acquaforlife - will allow each participant to create their own community, send their own promotional kit and invite their friends to join the movement. In this way, everyone shares the awareness-raising message and creates a buzz via their network. Participants will be able to bring their friends onboard creating a viral effect.

By joining the community created, these friends will automatically donate 10 litres of water. The more members, the wider the reach, the more communities and the more funds collected. The statistics available will allow each user to measure the day-to-day activity and development of his or her community.

Travel retail will be participating with the campaign through Acqua for Life animations and visuals in airports throughout the world.


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ck one unveils first global advertising as it launches new ck one brand lifestyle lines

Calvin Klein launched the first global advertising campaign for the ck one brand last month. Building on the iconic visual legacy of the brand, the inaugural advertising campaign for the new ck one brand lifestyle lines debuted around the world on February 23, leading up to the full reveal of the campaign a week later, on March 1.

The launch, which took place across multiple digitally integrated platforms – on-line, mobile, print, and outdoor – were all linked by dynamic creative. The campaign was conceived by consulting creative director Fabien Baron of Baron + Baron, working with CRK, Calvin Klein, Inc.’s in-house advertising agency.

The multi-faceted campaign for ck one will be the largest digital initiative in the company’s history to date. The global hub of the ck one brand and campaign will be the newly launched ckone.com, which has been designed as the designated destination for all consumers and fans to personally experience the brand and learn more about the lifestyle, products, campaign and featured talent.

Interactive, user-based experiences will be a key component of all aspects of the campaign and events that surround it and social media will be a powerful component of the ck one experience around the world. In addition to the interactive video content featured on the site, ckone.com users will be able to generate their

own content and create conversations around that content via social media platforms like Facebook and Twitter, making this content viewable and shareable with friends and fans globally.

User generated content will not be separated from the cast content, but will rather be positioned alongside the cast videos. The site will be available in 11 languages and have a global retail store and e-commerce locator.

“This is an important global multi-product launch and represents the company’s largest digitally-focused campaign to date,” said Tom Murry, president & CEO, Calvin Klein, Inc. “The emphasis on social media and the interactivity of this campaign serve to redefine the ck one brand for a new generation. The creative is exciting and strong and the multi-prong platform is on target to reach a younger demographic, while remaining true to the legacy of the iconic ck one brand.”

Beginning March 1, the outdoor campaign was featured on LED billboards in high impact locations in New York City and Los Angeles, as well as key sites in Seoul, Rome, Madrid, and Barcelona. Starting March 1, the full outdoor campaign will roll out further to Paris, London, Milan, Hamburg, Shanghai, Guangzhou, Hong Kong, Singapore, Sydney and Melbourne, among other key cities.

The imagery for the campaign was captured during a multi-day shoot in New York City by renowned fashion photographer Steven Meisel, who shot the original campaign for the launch of the ck one fragrance in 1994, setting the tone for this powerful brand. The campaign imagery was filmed and all of the print images are still captures from the video footage.

The campaign’s dynamic creative brings together the men’s and women’s jeans, underwear, and fragrance categories with one unified concept featuring a cast of more than 30 distinct men and women who embody the authentic individuality that is such an inherent part of the iconic ck one brand. Some of those featured are professional models, musicians, performers, dancers, and artists, while many of those featured in the campaign were cast on the street around the world and represent a wide and different range of backgrounds, nationalities, and talents.

Ck one, in conjunction with the launch of the new lifestyle line of jeans, underwear and swimwear, and its first global ad campaign and new website, will become the exclusive, global sponsor of MTV PUSH, MTV’s breakthrough global artist showcase.

As part of the sponsorship, ck one & MTV PUSH will host live music events in five cities, across three continents, including Austin, London, Berlin, Beijing, and Mexico City.

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DFA chosen as new duty free concessionaire at Salt Lake City International Airport

Stores will feature new beauty concept Duty Free Americas, Inc. (DFA)

announced that it was recently selected as the new duty free concessionaire at Salt Lake City International Airport (SLC).

SLC services international flights to Tokyo, Paris, Mexico and Canada.

DFA’s operations at SLC will consist of four travel retail stores.

In the International Terminal, DFA will operate a 1,612 square foot duty free store and a 172 square foot Kiehl’s skin care and hair care store (see page 70). The Kiehl’s store will be only the 4th U.S.airport location for this increasingly popular brand. DFA reports that it has enjoyed great success with its Kiehl’s stores at JFK and Miami International Airports.

Terminal 1 at SLC will feature DFA’s new Glamour Walkway concept, a store that will carry a wide assortment of beauty and accessory products, according

to Jerome Falic, Chief Executive Officer of Duty Free Americas. DFA will also sublease one of its locations to Sweet Ventures, Inc., whose Rocky Mountain Chocolate Factory franchise has historically been successful at SLC.

“DFA is excited to be a part of Salt Lake City’s commitment to expand and improve upon the Airport’s overall retail concession program by offering international passengers the opportunity to purchase duty free goods,” comments Falic.

“Based on our strong relationships with the suppliers of the world’s most popular luxury brands, our operating expertise and our familiarity with the international passengers served by SLC, we have every expectation that DFA will create an exciting retail offering at the Airport. We intend to bring to SLC the very best in customer service, as well as outstanding

brands at attractive duty free prices.” DFA is the largest tax and duty free

specialist in the Western Hemisphere. The company now operates 110 duty free stores in the United States, including 47 U.S. airport stores and 63 border stores on the U.S.-Mexican and U.S.-Canadian borders. The company’s affiliates also operate duty free stores throughout Latin America and in Macao.

F&S to open new Baja DF in Tacate, CAFairn & Swanson’s retail division,

Baja Duty Free, plans to open its newest store in Tecate, California next month.

The Port of Tecate is located 35 miles east of the San Ysidro crossing into Tijuana, Mexico, which makes the port of entry an alternative to the long lines on the Tijuana-San Ysidro border.

The city of Tecate, Mexico, has a population of over 100,000, and it is best

In 2010, forty years after buying Fairn & Swanson, Wolfgang Uhlig retired from his position as President.

Nicole Uhlig, Wolfgang’s daughter, has been appointed President of Fairn & Swanson and will continue to represent the Uhlig family interests in the long-term strategy of Fairn & Swanson.

Achim Fritzen will continue to manage Fairn & Swanson as CEO, a position he assumed in 2008.

Martha Guerra has been hired as the new F&S Purchasing Manager for the Baja division. Martha’s primary responsibility is to oversee the purchasing and merchandise planning for the fragrance, accessory, and confectionery categories as well as the merchandise planning for the spirits category.

With over 10 years of experience in the retail industry, Martha has perfected her professional skills to include product development, purchasing and inventory management. Most recently Martha was overseeing the purchasing department at Robanda International, responsible for all of the brands within the Robanda umbrella.

Prior to joining Robanda Martha was employed by the Estée Lauder Companies, under the Prescriptives brand, where she served as Merchandise Planner developing and executing product assortments and inventory levels for 108 stores.

New President, Purchasing Manager at Fairn & Swanson

known outside its region as the home of Tecate beer.

“This area has grown so much in the last 5 years that it became strategically necessary for F&S to have a store at this crossing,” states Elisa Castro, Vice President of Retail for F&S.

The Tecate location is the ninth Baja Duty Free store owned and operated by Fairn & Swanson Inc. along the U.S.-Mexico border.


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Hermès:Un Jardin Sur Le Toit

Hermès launched the fourth fragrance from its collection of garden-inspired fragrances in Miami earlier this month, with a personal appearance from Hermès’ esteemed in-house perfumer, Jean-Claude Ellena.

The launch took place on the roof of one of South Beach’sseaside boutique hotels, The Betsey, which had been transformed into a magical garden for the evening. An appropriate setting, since Un Jardin Sur Le Toit translates into “A Garden on the Roof,” and is actually based on the hidden garden that lies on the roof of Hermès’ iconic headquarters in the heart of Paris at 24 Rue Faubourg Saint-Honore.

This was no ordinary reveal. Members of the press from throughout the Americas had to work for their dinner: donning aprons and first preparing dessert, a cake made with apples and pears, and then moving to a gardening spot, where we repotted some beautiful hybrid rose bushes into special Hermès orange pots.

It was not surprising then, when we learn that Un Jardin Sur Le Toit has notes of apple, pear, rose, green grass, basil, magnolia and a touch of humus. The scents of a private garden.

Hermes Un Jardin Sur Le Toit is available in 50 and 100 ml Eau de Toilette.

Un Jardin en Méditerranée, Un Jardin sur le Nil, Un Jardin après la Mousson, Un Jardin Sur Le Toit

Delphine Derome, Director of Collections Development, Arnaud Beauduin, Vice President Americas & Hermès perfumer, Jean-Claude Ellena

A rose garden, Hermès style.

Hermès perfumer Jean-Claude Ellena shares his inspiration for Un Jardin Sur Le Toit


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The Estée Lauder Companies has a full plate of new products coming, many of them quite exciting and perfectly in tune with the times.

MAC continues to be right on in terms of communicating with its customer.

MAC’s brilliant launch and campaign for its limited edition Wonder Woman Color Collection is still rolling out on Facebook and social media sites, as the elusive fantasy lady travels the globe in her virtual online journey to help turn “Plain Janes” around the world into dazzling beauties.

The collection is all about “transformation,” according to James Gager, sr. vice president and creative director of MAC Worldwide during the presentation at a Pop-Up store in New York’s Soho in early February, empowering women to be whatever they wish to be, in a light-hearted manner that in no way belies the excellent quality of the products, despite their pop-culture heritage.

The color collection – sporting fantastical colors, packaging and presentation based on the iconic comic book heroine – looked right at home in the Pop-Up shop on Spring Street. It was bedecked with a super-size image of the heroine herself, and shelves covered with reproductions of Wonder Woman comic books and seven decades of Wonder Woman collectibles.

The Collection – vividly packaged in Wonder Woman’s bold signature Red,

Blue and Yellow – is comprised of 33 themed pieces made up of mineralized skin finish, eye shadow quads, pigments, opulash mascaras, lipsticks, lipglass and nail lacquers, many of which are super-sized to fit the bigger-than-life theme. The collection also includes red, blue and gold metallic makeup bags, brush sets in belted utility bags and golden purse mirrors.

Every element of the collection was designed to tell the story of this transformation, and was developed in collaboration with DC Comics, down to a special Wonder Woman video and comic book, pages of which were used to wrap the products. It launched internationally on March 1, and is getting an online boost from a four-square program in seven countries, which is helping Wonder Woman in her travels across the globe.

MAC has always been in the heart of pop culture. No more so than with its now iconic VivaGlam program, which has raised millions of dollars to fund research to treat and eliminate HIV/AID. The MAC AIDS Fund (MAF) was established in 1994 to support men, women and children affected by HIV/AIDS globally. To date, MAF has raised over US$160 million exclusively through the sale of MAC’s VIVA GLAM Lipstick and Lipglass, donating 100% of the sale price to fight HIV/AIDS.

With Lady Gaga back in her second go-round as VIVA GLAM

GODDESS, MAC has created an exclusive Viva Glam site, www.vivaglam.com, featuring All Things Gaga, which went live on March 17. This is when the latest Viva Glam lipstick and lipgloss was revealed, which now remains on sale for a full year. Every cent of each Viva Glam product sale is donated to the MAC AIDS Fund.

A new travel retail exclusive fragrance from the Estée Lauder brand, Adventurous, will also be oncounter worldwide in March. Adventurous is said to evoke a “safari of the senses” with notes that evoke the warmth of the earth and beat of African woods, and comes with an accompanying color palette.

In skincare, Estée Lauder uses its reputation for science and technologically advanced products to connect with its core consumer. In its latest example, Estée Lauder has updated its DayWear franchise, with a new collection of products led by DayWear Advanced Multi-Protection Anti-Oxidant Moisturizers SPF 15, which the company says uses the brand’s most

effective anti-oxidant and broad-spectrum sunscreen protection ever.

And Clinique, in March, introduced a travel retail exclusive set for its break-through Repairwear Laser Focus Wrinkle & UV Damage Corrector. The set contains two 30ml versions of the product and will be available for a limited time.

the sale price to fight HIV/AIDS.With Lady Gaga back in her

second go-round as VIVA GLAM

effective anti-oxidant and broad-spectrum sunscreen protection ever.

March, introduced a travel retail exclusive set for its break-through

two 30ml versions of the product and will be

The Estée Lauder Companies

Using PoP Culture to connect with their consumers


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Air-Val presents enchanting children’s perfumes and launches a new line of NBA scents for sports fans

Air- Val International will launch a range of new children and adult fragrances at IAADFS 2011 in Orlando that encompass some of the most popular Disney characters and, for boys, a full line of scents based on six of the most popular teams in the National Basketball Association.

Based in Barcelona and with an office in Miami, Air-Val International was founded in 1979 and is one of the biggest Disney licensees in the perfumery category. Today, the company manufactures over 200 children’s perfumery references for Disney and Barbie in addition to fragrances for many other well-known brands and has a worldwide presence.

Air-Val’s target audience includes pre-schooler, children, tween, teenager and adult category. Today, Air Val has a portfolio of nearly 300 fragrances and personal care products for children and teenagers.

Barbie: The new selections for 2011 start with Barbie. A truly global sensation for 50 years, Barbie is recognized and celebrated around the world. Air-Val’s latest Barbie products include a Barbie jewelry set, containing three miniature EDT 10ML in Pink, Yellow and Blue scents and a kissing lipgloss.

Mickey and Minnie Mouse Fragrance: Since his debut on November 18, 1928, in Steamboat Willie, Mickey Mouse has evolved into a character who reminds all ages of the benefits of laughter, optimism and hope. Air-Val’s new fragrances for Mickey and Minnie Mouse come in an exclusive bottle and is presented in a fun metallic box.

Air-Val’s latest Disney Princess Fragrance is presented in a metallic round bag containing an enchanting fragrance EDT 50ML in an original bottle with a magical crown on the cap.

Disney Fairies Fragrance: Air-Val International presents its new Fairies perfume, featuring Tinker Bell and her friends in the world of Pixie Hollow. The fruity-floral EDT comes in an adorable metallic box shaped like a spring flower, with petals that open and close to reveal the delicately crafted perfume bottle within.

For boys, Air-Val has its Pixar Disney Cars collection. This year’s addition is a cologne that celebrates Lighting McQueen and his friends. Cars2 EDT 100ML

Air Val International and the NBA: Air-Val has developed entirely new products for this brand, which it says is key for the global youth market. The National Basketball Association has a dedicated, global fan base, with a strong tie to youth and popular culture. The NBA is a lifestyle brand that represents American culture, performance and style to millions of fans around the world.

As for the scents, Air-Val says that the highest level of basketball in the world needed unique and intense fragrances,

and that they created the line to share the same attributes as the game: Talent, Fun, Excellence, Trendsetter..

The line consists of two different fragrances and two gift sets. Each fragrance comes dressed in a sleeve that represents the most popular teams: Boston Celtics, Toronto Raptors, New York Knicks, Los Angeles Lakers and Chicago Bulls.

The NBA line includes an NBA Eau de Toilette Blue 100 ml, with top Notes of Tea, Green Apple, Bitter Orange and Aquatic Spices, Middle Notes of Lavender, Cedar Wood and Tonka Bean, and Base Notes of Musk, Moss and Vetiver.

The NBA Eau de Toilette Black 100 ml fragrance has Top Notes of Basil, Thyme, Orange and Rosemary, Middle Notes of Sage, Geranium and Coriander and Base Notes of Fir-Moss, Vetiver and Patchouli.

Air-Val will be showing all these new selections in booth number 733.


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Miami-based distribution and agency company Philippe Gerard Enterprises has added two major new brands to its portfolio, Majorica Pearls and Black/Up, a French make-up artist brand designed specifically for women of color.

Venturing into the jewelry category for the first time, fragrance and cosmetics specialist PGE will be representing Majorica pearls in the Caribbean and Mexico Duty Free (with the exception of the Aldeasa stores in Cancun airport and the Mexican department stores of Cancun).

“We will be the distributor for Majorica, although we will not hold inventory,” explains PGE President Jean-François Picot. “Orders from customers will be either cross docked in Miami ordrop shipped from Spain.

“Majorica is a little out of our normal scope of business, but we were impressed by its renewed brand acknowledgment in the U.S. and its quality distribution in the U.S. department stores. We also have found a deep interest by retailers in the Caribbean to carry or carry again this brand, which

had been forsaken for some time. We also think that a diversification of our portfolio is appropriate for our future development,” Picot tells Insider.

Picot is also tremendously enthusiastic about the new make-up brand, Black/Up, which PGE will be distributing from inventory in its usual warehouse, throughout the Caribbean, with the exception of the French Antilles.

“Black/Up is a high-end cosmetic brand manufactured in France and in Italy, specifically created for women of color, bringing quality, elegance and style. Presently, there are no brands that have this unique concept,” says Picot.

“We are very excited to be the company that will bring to the Caribbean people of color, a cosmetic line of high quality, modern and elegant, fulfilling their specific needs. When we first approached the company four years ago, they weren’t ready to expand. But today, Black/Up can claim the number one spot in Make-Up in the French Antilles.”

In the two months since PGE announced that it would be carrying the brand, the reaction from Caribbean retailers has been “super positive,” reports Picot. “We have a lot of interest.”

Lionel Durand, Managing Director of Black/Up recently launched the company’s U.S. website during a presentation in New York. For more information, please contact PGE at [email protected] and go to www.blackupcosmetics.com .

PGE expands portfolio with Majorica pearls and French make-up brand Black/Up

Rihanna’s signature sent sells out in CaribbeanIn its fragrance portfolio,

PGE has launched the first Parlux fragrance from super songstress Rihanna, Reb’l Fleur. Rihanna, who is from Barbados, is considered a national icon in her home markets. This appeal has apparently translated into demand for her fragrance—PGE has reordered four times since launching the brand in February.

The 2-day launch in Barbados held March 5-6, drew hundreds of people.

While Rihanna was on Tour in Australia, her mother, Monica, did the reveal of the fragrance, and was very well received.

Rihanna’s mother, Monica, (l) presented her daughter’s signature fragrance, Reb’l Fleur, in the launch at Cave Shepherd in downtown Barbados on March 6.


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Beauty industry icon Annette Green, President Emeritus of The Fragrance Foundation, has joined up with Benjamin Cohen, Founder and President of BobCar Experiential Media, as BobCar’s first ever “Beauty Brand Spokesperson.”

Green is bringing her 40-plus years of experience to this new, patented Retailing/Marketing concept - the BobCar MobileBeauty Boutique. Together, Green andCohen are striving to develop a new world of retailing outreach, allowing beauty companies to provide hands-on product information, education, demonstration and sales literally “on the streets” of America.

The BobCar is a zero-emission electric vehicle that can be customized for a brand or a retailer and used to reach out to,attract and involve consumers wherever they might be. As a mobile media showroom, the customized BobCar—decked out with client colors, logos, videos and product — has the potential to

be a powerful marketing tool in an airport or other travel retail environment.

Speaking with Travel Markets Insider, Green said the innovative BobCar caught her imagination – and enthusiasm – and she immediately saw its potential as a tool with which to connect with the consumer. “To me, the future is about being where your consumer is going to be. The BobCar, eco-friendly, interactive, brightly-colored and eye-catching cars, can engage potential consumers and become a mobile demonstration showroom or even a sales boutique. The idea is sensational and so appropriate for the beauty industry.”

Green points out that consumers love touching, feeling and trying-out the latest in cosmetics, fragrance or personal care products, and the BobCar, could be used for sampling, make-overs, launches, animations. The potential list is endless.

“I believe this break-through innovation

will influence the future of educational and experiential marketing as well as consumer purchasing patterns,” said Green.

Benjamin Cohen, who created the BobCar originally to drive foot traffic into retail stores, is in complete agreement with Green. “Annette’s expertise and years of success in the Fragrance and Beauty Industry will facilitate BobCar’s growth, as we alert this industry to a powerful marketing tool, never before available in the consumer marketplace.”

“With BobCar Mobile Beauty Boutique we’ll have the zero-emission electric vehicles in highly-trafficked areas where people can speak with trained Brand Ambassadors, try the latest colors, smell new fragrances and experiment with beauty care products. It’s a new and easyway to involve consumers whenever they leave their homes, office, entertainment centers or just make the street scene. Customers are stimulated to visit stores to purchase the products they have just discovered and experienced in the entertaining BobCar environment,” said Cohen.

Introducing the BobCar:Breakthrough Mobile Beauty Boutique Could drive retail traffic in airports Beauty, Fragrance icon Annette

Green joins BobCar Experiential Media as Beauty Brand Spokesperson to bring a futuristic, ground-breaking Marketing and Retail Concept to the Beauty and Personal Care industry.


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Cohen told Insider that the first customers who used the BobCar came from the consumer electronics sector, and that results were amazing: “Using the BobCars increased sales figures up to 200% in past campaigns. That’s real selling power, and we are fully synergistic with the local stores’ efforts. A definite Win-Win for all concerned.”

About BobCar Media, LLCCreated by Benjamin Cohen to drive foot traffic into retail stores, BobCar Media, LLC is a marketing company that utilizes their patented eco-friendly interactive mobile demonstration show rooms and sales boutiques to feature client products. The brightly-colored, eye-catching cars attract customers with their sleek design. Educated Brand Ambassadors are present to answer customer’s questions and help them understand which product best suits their needs.

BobCar Media’s mobile campaigns drive traffic and sales, generating impulse buying in high traffic city locations nationally. For more information about BobCar, visit: www.bobcarmedia.com

About Annette Green Ms. Green is a world-recognized industry futurist and leader. Her pioneering work has been a pivotal force in creating the modern-day Fragrance Industry. In her over 40 years leading The Fragrance Foundation, as Executive Director and President, Ms. Green developed a series of critically-acclaimed exhibitions which were mounted in museums across the U.S., developed industry conferences here and abroad, established the Sense of Smell Institute in the early 80s, working with hospitals and universities around the world. It was the first time an industry had committed itself to spearheading the study of our senses, emphasizing the psychological impact of fragrance

on behavior. Ms. Green also acted as an educator and spokesperson for the industry and helped establish Bachelor and Master degree programs in Beauty Marketing at the Fashion Institute of Technology (FIT).

Ms. Green founded The Fragrance Foundation’s Annual “FiFi” Awards, the “Oscars” of the Fragrance Industry, which has expanded to France, Germany, Italy, United Kingdom and most recently in Dubai and Moscow. Ms. Green developed and opened the country’s first fragrance museum, The Annette Green Museum at The Fragrance Foundation, which was named in her honor by the Foundation’s Board of Directors. She has received numerous awards and honors including the prestigious Medal of the City of Paris and a “Certificate of Appreciation” from the Mayor of New York “for her contribution to the well-being of the fashion and beauty industries in our City.”

WHAT IS A BOBCAR? – A small, patented, eco-friendly, zero-emission, sleek, eye-catching vehicle designed to traverse highly trafficked urban/suburban centers across the USA. The flexible BobCar Mobile Beauty Boutique can be parked indoors and outdoors at advantageous locations: Concerts and Events, Malls, Shopping Centers, Entertainment and Sports Centers, Street Fairs and Festivals, Parades, Marathons and College Campuses. Once stationed in a well-populated area, the BobCar opens up to reveal a beautifully designed product demonstration showcase.

Measurements:Overall: 11’ L x 5’ W x 6’ H, Display: 5’ L x 4’ W x 4’ H

OUR MISSION – To Provide a breakthrough opportunity for companies to connect

with potential customers firsthand, while introducing the companies’ products and marketing messages.

OUR ASSIGNMENT – To raise brand presence and awareness; showcase products, offerings and key brand messages; educate consumers on products; connect consumers with a retail outlet; stimulate sales during and after the program; drive traffic into the retail stores, in front of which the BobCars are positioned.

OUR STRATEGY – The highly-engaging, interactive BobCar Mobile Beauty Boutique allows customers to test out the showcased products on the street, right where they live, work or play. Educated Brand Ambassadors are on hand to answer any questions and help the customers understand which products are right for them. Purchase incentives may also be

employed. Customers are provided with contact information of the nearest retailers to complete their purchase.

OUR MESSAGE - The BobCar Mobile Program will be heavily promoted by our partnering Public Releations Firm, the Saxton Group Limited, working hand-in-hand with your PR Department. An official Mobile Beauty Boutique Facebook page and Twitter account will be created and managed by a BobCar digital team member, comunicating the most up-to-date BobCar locations, news, photos/videos, promotional opportunities, etc…

OUR RESULTS - In past technology client case studies, BobCar increased sales up to 78% when positioned in front of Best Buy stores, and up to 200% when positioned in front of T-Mobile retail outlets.

THE BOBCAR MOBILE BEAUTY BOUTIQUE FACT-SHEET


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Collections 2000 Inc. will be showing an exciting range of new and returning brands at the IAADFS Duty Free Show, on exhibit at Booth #437.

Debuting in Orlando from Collections 2000 are the fun, casual bags from Big Buddha, whose designer Jeremy Bassan was discovered by shoe mogul Steve Madden.

“The Big Buddha bags sport soft materials, pop hardware and great colors; and feature all the function you are looking for, such as plenty of pockets, adjustable shoulder straps and top zippers,” says Collections 2000 founder Kathy Levine.

“Bassan designs handbags for the modern woman who may juggle a career, school and family. Big Buddha bags are animal friendly, stylish, fun and won’t break the bank.”

The young designer at the core of Big Buddha, 27-year-old Jeremy Bassan, is a dual American French citizen, world traveler and entrepreneur who runs his company from his new office at the Steve Madden Showroom in New York City, says Levine, “and is continuing to grow in a competitive industry.”

Big Buddha is available in Macy’s, Dillards, Lord & Taylor and in boutiques throughout the country.

Another newcomer to duty free is Invicta watches, says Levine.

“With over twenty collections, Invicta is fully equipped to suit the most particular and diverse tastes,” says Seth Levine, Collections 2000 co-founder. Invicta is known for achieving creative and technical revelations from every point of view and offering engineering and design.

Among the Invicta watches are Subagua, Reserve, Russian Dive and Lupah to name only a few. This is one of the most collectible watches. Collections 2000 will also be featuring watches from Toy and Philip Stein.

Italian leather goods company, Alviero Martini, producers of the map-inspired 1A Classe accessories, is returning to the Duty Free show after an absence of several years. Alviero Martini 1A Classe is one of Italy’s leading brands of luxury goods, and an important representative of Italian Style around the world. Inspired by the era of legendary voyages, explorations and the Belle Epoque, today Alviero Martini 1A Classe has a strong, clear identity: the fabulous map designed by Alviero Martini in the mid 80’s. This year, the company will be introducing a new white look as well,” reports Kathy Levine.

Collections 2000 brings big bags, smart watches and Italian style

LATR is pleased to announce the sign-ing of a worldwide distribution agreement with GUESS for Jewelry products for the Travel Retail Market.

Since 2004 LATR, a worldwide Travel Retail distributor for luxury brands Parker and Vilebrequin, continues to strengthen its position as a central player in the distribu-tion of luxury products on the Duty Free market.

GUESS Jewelry is at IAADFS in Orlando and TFWA Singapore.

Contact: David Dayan

Harston Group is back in Orlando this year with a full range of watches, jewelryand accessories from leading brands including Puma Time, Esprit (MYWA), Jacques Lemans, Jacques Farel and Jacques Farel Kids Cuffwear and Arren.

Puma Time Motorsport, Active and Urban Mobility collections are inspired by innovation and color. The latest trends – such as the snake and crocodile leather-looks and bright plastics – will extend the diversity of the Core Collection from Esprit.

Esprit’s Houston line features new,elegant watches that offer features such as a delicate woven leather/metal strap. This season, the Houston range also offers a louder look with reptile skin-like straps, courtesy of the Pico models. Stand contacts will be managing director Margaret Taylor, commercial director Stephanie Hum and international sales director Hans Eulenhoefer. (Booth 931).

Guess Jewelry signs global deal with LATR

Harston watches, accessories make a colorful impact


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Be Fine, the original food-based skin care line, has made impressive inroads into international distribution since attending the Tax Free World Exhibition in Cannes last October, says Be Fine Managing Director Michael Barbanel.

Barbanel, along with Beauty2Market’s David Tillman, who represents the brand in these markets, had a very good response to the brand in Cannes, completing a number of important listings and distribution agreements.

“Be Fine was chosen as the only skin care line to be carried at Filthy Gorgeous, a fresh and edgy new beauty retail concept from Debenham’s department store in the UK. And we are rolling into four more of their stores in April,” Barbanel tells Insider.

“We have hired an agent for Germany, and signed worldwide distribution deals in the UK, Italy, Russia, South Africa, Korea, Ukraine, Saudi Arabia, Indonesia, the Czech Republic and Bahrain among others,” he says.

Be Fine is also taking a serious look at South America, and has named well-known fragrance representative Melanie Velasquez as Be Fine’s Latin America Sales Director. The company has already finalized a deal in Panama.

The company is also garnering attention from the airlines, and according to Barbanel, with good reason: “We are seeing 80% sell-through inflight with AirTran for our Lemon Balm, and we are on TACA with DFASS. We are being presented to quite a few airlines now.”

The brand could be taking off because it offers a distinctly different, and quite refreshing, rational to taking care of one’s skin. All of the products – which are listed as allergen-free fragrance, paraben free and made with vegetarian protein — use ingredients based on the foods that people eat: rice, oats, sugar, mint, ginger, rosemary, cocoa and pomegranates among them.

Described as Food Skincare inspired by nature, and made with over 50 food-based ingredients that include plants, vitamins, minerals and oils, the range is beautifully presented in clean, environmentally friendly packaging. The line is supported by a very savvy website, cleverly merchandised and attractively priced. And it is being carefully nurtured

by its new team of owners who, led by Barbanel, acquired the company late in 2009.

“The Be Fine concept was born from the food side of the industry, created by Florence Sender, who came from a food background as a chef,” Barbanel explains.

Sender put together a whole regimen of products derived from food products.

“Her theory was that if you ingest it, you eat it, it has to be good for you. If we eat it from the inside we can absorb it from the outside.”

Although Sender is no longer involved with the company, her concept remains valid.

The new owners – who have an extensive background in the U.S. fragrance and skincare distribution business – first repositioned the Be Fine brand as a specialty shop line rather than the drug mass where it had first been launched.

“In the U.S. Ulta Beauty is our flagship retailer and they are doing fantastic business with us,” says Barbanel.

“In domestic markets we are partnering with distributors who can put us into the masstige distribution channel, like the perfumeries and the pharmacies that exist throughout France and the EU,” adds Beauty2Market’s Tillman.

“We are really priced in the middle and we offer the same formula that some of

Markets are finding a taste for Be Fine’s skin nutrition

South Florida fragrance company Parlux will be launching a new fragrance brand for designer Vince Camuto.

The uber-shoe designer, a co-founder of U.S. brand Nine West who now leads a team that reportedly produces 22 million pairs of shoes a year globally, also acquired the Jessica Simpson master license in 2005, turning it into one of the most successful brands in the young contemporary market.

Parlux to launch fragrance brand for shoe designer Vince Camuto in Cannes

“Vince Camuto also launched his own line and it is doing very well,” says Parlux Vice President of International Sales Les Romer. She confirms that the Vince Camuto fragrance will be unveiled at a reception in Cannes in October, and that Camuto will be making a personal appearance at the launch.

the top prestige creams offer,” says Barbanel. Because Be Fine skincare is food

derived, it was natural to design the product portfolio as a menu, says Barbanel:

“We have the refreshing starter course, which are the Be Clean products, the cleansers, the toner and the scrub. Then we have the Nourishing Main course, which consists of our moisturizers, night cream, neck cream, and eye treatments. And then we have the final course, the Indulgence Course, which includes the specialty items, masks, lip products, and our best selling Rough Spot Lemon.”

“Following the food theme, our website even incorporates recipes using the ingredients that make up the Be Fine products. These recipes drive home the concept that the same food that you put into your body is what you can put on your skin,” says Barbanel.

The line is reasonably priced, simple to use and easy to understand, and finding success both in domestic and international markets.

Several new products are planned for the first quarter of this year, including three new facial masks in avocado, cucumber and mint, a natural bronzer and a natural skin brightener.

Be Fine is exhibiting at the IAADFS Duty Free Show of the Americas at Booth # 2208.

Parlux will be launching the fourth generation Jessica Simpson fragrance in the fall as well, she says.


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With all the attention being devoted to the upcoming royal wedding of Prince William and Kate Middleton on April 29 at Westminster Abbey, Ram Cherukuri believes it is an auspicious time to be launching his Guards Polo Club fragrance collection, which he is showing for the first time at the 2011 Duty Free Show of the Americas.

Cherukuri, president of New York-based American Fragrances, has the distribution rights for the Guards Polo Club Windsor Fragrance Collection for duty free and international markets. He tells Insider that the fragrances have been launched in parts of South America and in some markets in the Middle East, but the 2011 Duty Free Show of the Americas will be the debut of the brand in the U.S. — and the first time it is being shown in duty free.

The Guards Polo Club brand was first established 50 years ago and has a very prestigious pedigree. It was founded in 1955 by HRH The Prince Philip, Duke of Edinburgh and is, today, a real place located in the Royal Windsor Park. The Club is said to epitomize the best in English polo, with a profound sense of tradition and enjoying Royal patronage since it was founded.

The Club has grown considerably and is now firmly established as the largest premier polo club in Europe. In fact, the Guards Club has become a legend in polo circles, due in part to its idyllic setting, says Cherukuri.

“The Guards Polo Club has come to symbolize heritage, prestige and glamour within the world’s leading business, celebrity and Royal audiences,” Cherukuri tells Insider. “And now, polo, as a sport and as a lifestyle choice, is enjoying unprecedented popularity and exposure.”

This is the background behind the Guards Polo Club fragrances, he says, and with all things related to the British Royal family garnering so much attention right now, he is anticipating a solid, enthusiastic reception to the brand at the Duty Free show.

The three men’s fragrances in the set are Bearskin, Blues and Smiths Lawn; each presented in 100ml sizes in a crest- enhanced bottle. Bearskin is a traditional fougere; Blues is described as a modern masculine fragrance with citrus fruity top notes and a spice fougere heart. Smiths Lawn opens with bergamot, lemon and crushed basil leaves, and has an aromatic fougere heart with lavender, anise, cypress and rosemary

The two fragrances for women are called Celeritas, which means “fast” and is a fruity floral with a patchouli woody base. Aequitas, which means fair, is a warm chypre. They are each presented in a 75ml crest enhanced bottle.

American Fragrances will also be showing their own American Dream line of fragrances, for which the company has worldwide distribution rights.

Cherukuri notes that the American Dream fragrances for men and women are positioned as “patriotic fragrances.”

Aspirations:Royal Polo Clubs and

American Dreams

Share your dreams!

American Fragrances162 Port Richmond Avenue

Staten Island, NY 10302(718) 816-1112Booth# 2208

[email protected]


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“The concept evokes thoughts of freedom, aspiration, opportunities and a carefree life style for which America stands for,” he says.

The American Dream range was showcased two years ago at the Duty Free Show to very enthusiastic response, says Cherukuri, The company will also be showing some new sets.

Both the ladies and mens line are available in 30, 50 and 100ml sizes and accessibly priced in the U.S. market at $25, $30 and $40 respectively.

Cherukuri says that he is currently looking for business partners to market and distribute the products.

For more information, visit American Fragrances at Booth #2208.

Chicago-based EM Distribution will be showcasing two exotic, high-end perfumes at the Duty Free Show of the Americas: Puro and Puro Intense by Nejma.

The exotic perfumes were created for cigar lovers (men and women both) and are made using mainly natural and premium ingredients including cuban tobacco leaves, aged rum and Mexican lime. The Intense version is a bit deeper with coffee bean extract.

The Puro version is described as having a spicy bouquet of cinnamon bark and clove stems, embuing it the “exotic and vibrant feel of the Caribbean.”

“The fragrances are very distinctive and delicious,” says Sabine Hernandez, Business and Sales Development Manager at EM Distribution.

Puro has just been launched in the U.S. where it is selling in upscale boutiques. EM Distribution is now launching the line next month in Canadian and Mexican domestic markets, where they will be in key upscale boutiques and independent department stores.

“We would like to launch Puro this Spring in the Caribbean market,” said Hernadez. “These are beautiful blends! It is easy to get ‘drunk’ on it! Perfume connoisseurs will fall in love.”

The U.S. retail price point is $95 for both Puro and Puro Intense EDP 1.4 oz

EM Distribution will be exhibiting in booth #1517 during the Duty Free show.

EM Distribution introduces a perfume to create the exotic taste of Cuba

Share your dreams!

American Fragrances162 Port Richmond Avenue

Staten Island, NY 10302(718) 816-1112Booth# 2208

[email protected]

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Following the transformation of the liquor department at its pre-security store at Tom Bradley International Terminal at LAX, DFS has taken its spirits presentation to the next level at Singapore’s Changi Airport with the first-ever Master of Spirits event which ran March 11 and 12. The invitation-only event at Changi’s exclusive CIP Terminal included a series of private branded dinners and a gala event on March 12.

Leading distillers and craftsmen were on hand to describe the production processes they use and to explain the features of their spirits and wines. Connoisseurs tasted some of the most prized products from the world’s most distinguished distilleries and vineyards.

President of Worldwide Store Operations, Michael Schriver, says DFS’ ongoing partnership with the Changi Airport Group helped take the event to greater heights. “We are extremely pleased to have the full support of our valued partners to host such a world-class spirits and wine event,” he said.

“The Master of Spirits event is one of the very unique occasions where we have so many leaders in the luxury spirits world showcasing their fine and rare products all under one roof. This isn’t just another event – it’s the only event to be at if you’re a true spirit connoisseur,” said President of Merchandising, Harold Brooks.

Some of the highlights at the Master of Spirits event include:

The Royal Salute 50 Year Old, brewed from Scotland’s finest and most precious whisky selection, was created to celebrate the 50th Anniversary of Her Majesty Queen Elizabeth II’s coronation by the Chivas Brothers. There are only 255 individually numbered flagons in the world, one of which will be made available at the event. This is the last bottle to be sold from the distillery.

The Highland Park 50 Years Old, the distillery’s oldest and most prestigious release. Each bottle is uniquely sheathed in an intricate ‘net cage’ that reflects the elemental forces and medieval beauty of Scotland’s Orkney Islands. The bottle is specially designed and handcrafted by internationally renowned jewelry designer Maeve Gillies. Two bottles of this remarkable limited edition exclusive work of art were presented at the event.

Two bottles of The Macallan Lalique 55 Years Old in a Limited Edition Lalique Decanter, specially created and hand-crafted by 25 of France’s finest craftsmen were available at the event. There are only 420 decanters in the world and each piece is individually numbered.

The Macallan Fine & Rare Linley Cabinet, an ultimate collaboration with the renowned British furniture design company. The exquisitely crafted Linley cabinet becomes a distinctive showcase for the Macallan’s remarkable single malt Scotch whisky collection from six decades: 1937, 1949, 1952, 1960, 1976 and 1989. The collection is created exclusively for the Master of Spirits event.

The Balvenie Forty, a careful selection of rare whiskies obtained from seven hand-selected casks. Each of the selected whisky has been maturing for over 40 years. Created by Balvenie Malt Master David Stewart, each bottle is hand-numbered and presented in a bespoke wooden box, with only 150 hand-numbered bottles available worldwide. Only 2 bottles were available at the event.

The Louis XIII Rare Cask 43.8, a supremely rare cognac from the House of Remy Martin handpicked by cellar master Pierrette Trichet for its unique strength, richness and intensity in 2004.

One bottle was brought in for this event.

The Louis XIII Black Pearl Magnum, a cognac of royalty, rarity, sublime taste and dramatic presentation. Each bottle is a blend of 1,200 cognacs, ranging from 40 to 100-years-old, across three generations of cellar masters. There was one bottle showcased at the event.

The Hennessy X.O. Mathusalem Berluti Chest is a limited edition bottle that is housed in its bespoke leather bound wooden chest made by renowned French shoemaker Berluti. Only one bottle was made available at the event.

The Dom Perignon White Gold Wedding Jeroboam 1995, the most expensive champagne jeroboam available today. Officially launched in 2008, the three-liter bottle combines the exquisite craftsmanship of the finest jewelers and wine creators. Each exclusive piece is limited and numbered, two of which were featured at the event.

The Penfolds Bin 7 Coonawarra 1967, a rare and collectable blend of Coonawarra Cabernet Sauvignon with Barossa Shiraz sourced from Penfolds most treasured old blocks. Only 500 cases of Bin 7 were ever made and its estimated less than 20 cases remain in existence. Only 1 bottle was available at the event.

DFS creates the world’s first Master of Spirits event at Changi

Haleybrooke International has reached an agreement with Barry Global Innovation (BGI), the exclusive global travel retail agent for Paul Sapin Wines, to represent their Exclusive Travel Retail MLP (multi-layer PET) range of wines in North America, Central America, South America and the Caribbean.

Patrick Nilson, President of HI stated, “Yes, the Paul Sapin wines are very good quality with a range from all over the world. The MLP concept is extremely interesting for travel retail. A 750ml bottle of wine in MLP is 1/3 lighter than a bottle of wine in glass and is unbreakable which makes them perfect for traveling consumers who will find many uses when they return home including back packing or serving by the pool.”

Roger Thompson, Vice President of Haleybrooke International added, “A plus

to many consumers is the fact that the MLP bottles are ‘green’ and 100% recyclable.”

Barry Geoghegan, President of Barry Global Innovation said, “I am looking forward to working with Haleybrooke International and introducing our MLP range of wines in the Americas. We have already received listings in Europe and The Middle East with Aer Rianta, Aelia and Dufry and I am sure that we will have similar successes in the Americas.”

The wines in MLP bottles exclusive to travel retail include the following: Paul Sapin Vin du Pays d’Oc, Bourdeaux Rouge, Chablis, Fleurie (France), Casa Santa Maria (Chile), The Rocks (Australia), Giuliana (Italy), Whistling Thorn (South Africa), Ta Moko (New Zealand) and many others

Geoghegan will be on hand at the Haleybrooke International booth #207.

Haleybrooke signs up Paul Sapin Wines

INSIDER


IAADFS 2011: Visit Imperial Brands Inc. & Belvédère Duty Free at our Booth #736DANZKA® vodka, SOBIESKI® vodka, MARIE BRIZARD® liqueurs, Gautier Cognac® and 4Orange® vodka

are registered trademarks owned by BELVÉDÈRE S.A.© 2011 BELVÉDÈRE S.A.

our Bo® vodka

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With the unprecedented success of Sobieski Vodka in the U.S. and a growing stable of new markets for Danzka Vodka, the business in the Americas for Belvédère Duty Free and sister company Imperial Brands continues to reach new levels.

“2010 was an excellent year for our duty free flagship Danzka Vodka and Sobieski Vodka, the most popular premium vodka in Poland,” says Torben Vedel Andersen, Director Global Duty Free for Belvédère Duty Free. “We had a very good beginning of 2011 so everything looks fantastic. Our brands are growing throughout the Americas region and throughout the world.”

Sobieski Vodka continues to be one of the fastest growing brands in the U.S., and now it is gaining momentum throughout the rest of the region.

“Sobieski Vodka grew more than 40% again in 2010 in the U.S. We shipped about 800,000 9-liter cases,” says Paul Massey, Imperial Brands Vice President of National Accounts. “The goal for 2011 is one million cases. I think we have a really good shot of getting there, making us the fastest vodka in the U.S. to ever reach that milestone!”

According to Massey, Sobieski Vodka’s success in the U.S. domestic market is now spreading to travel retail.

“You have to have the visibility in the local market to drive those sales in the duty free market and we have the visibility in the U.S.,” says Massey. “We are excited because Dufry Puerto Rico just started carrying Sobieski on March 1. We continue

to great success, says Gonzalez. “Our Brazilian sales are fantastic. The domestic success in Brazil has helped the brand in the rest of the region.”

Danzka’s success is not limited to the Americas, as the brand expands throughout Asia, says Andersen.

“Danzka Vodka is dramatically growing in Asia and the Pacific Rim. We had our first order from New Zealand and hope to be in Japan this year,” he says.

In Cancun Airport with Aldeasa, Belvédère has combined its two main vodkas into a dual display featuring Danzka Vodka on one side and Sobieski Vodka on the other, that Andersen says looks great and has increased sales for both brands.

“The new displays are boosting the sales quite nicely,” he says.

Imperial Brands’ 4 Orange Vodka, which was introduced at the IAADFS Picnic last year, is attracting attention as a destination product. 4 Orange has been listed at SMT in Puerto Rico, DFA in Miami, and Aldeasa in Orlando.

“4 Orange makes a great gift for people traveling in and out of the islands as well as in and out of Florida. It is not a flavored vodka, and is unique since it is actually made from four varieties of oranges that only come from Florida,” says Massey.

Belvédère Duty Free and Imperial Brands will showcase their full range of vodkas at the IAADFS Duty Free Show of the Americas in Orlando along with the Marie Brizard liqueurs, on stand 736.

to do well with Sobieski with SMT in Puerto Rico, and it is doing very well at the Orlando Airport.”

Massey says the Sobieski two-pack has done very well along the southern U.S. border with Fairn and Swanson.

Imperial Brands launched Sobieski Vodka in Latin America in 2010, and the brand is already taking off with operators along the Brazilian border such as London Supply in Argentina, Shopping China in Paraguay, and Siñeriz Duty Free Shop, in Rivera, Uruguay, says Tito Gonzalez, Imperial Brands Regional Director, Latin America and Caribbean.

“We started in the domestic market in Brazil two years ago and now it is paying off for the rest of Latin America. We also have Sobieski in Central America with Grupo Wisa,” says Gonzalez.

Sobieski is also growing in the domestic markets in the region. The brand is in Peru, Chile, Argentina, Brazil, Panama, El Salvador, and Mexico and the company plans to launch in the rest of Central America in 2011.

Sobieski Vodka is also well represented in key Caribbean islands including in Curaçao, the Virgin Islands, St. Martin, and the Cayman Islands.

For Danzka Vodka, which introduced a slimmer, sleeker new bottle last year, Imperial Brands is taking advantage of the buildup to the 2014 World Cup and the 2016 Olympic Games in Brazil to further

build the business.“Brazil’s border

business is thriving. The economy is growing, which has led to more border crossing and travel retail business. This is why Shopping China, Mannah, and London Supply are booming,” says Gonzalez.

Danzka Vodka was launched in the Brazil local market last year through the

Belvédère Brazil Subsidiary

Sobieski Vodka and Danzka Vodka lead the way for Belvédère Duty Free and Imperial Brands in the Americas

which has led to more border crossing and travel retail business. This is why Shopping China, Mannah, and London Supply are booming,” says Gonzalez.

launched in the Brazil local market last year through the

Belvédère Brazil Subsidiary

Sobieski was featured in the Central Hall of London Supply’s Iguazu store

The dual Sobieski/Danzka display in the Aldeasa store in Cancun airport

IAADFS 2011: Visit Imperial Brands Inc. & Belvédère Duty Free at our Booth #736DANZKA® vodka, SOBIESKI® vodka, MARIE BRIZARD® liqueurs, Gautier Cognac® and 4Orange® vodka

are registered trademarks owned by BELVÉDÈRE S.A.© 2011 BELVÉDÈRE S.A.

our Bo® vodka

Duty FCognac® a

ELVÉDÈR

FFree at oand 4Orange®

RE S.A.

Free at oFFree at operial BBIESKI® vod

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ADFS 2011:DANZK

: Visit ImpKA® vodka, SOB

are regist

INSIDER


Brown-Forman has announced that it has agreed to sell Fetzer Vineyards to Chilean wine producer Vina Concha y Toro S.A. for $238 million. The decision to sell was made after the company completed a strategic review of its Hopland, CA wine assets, following an announcement in December that it was exploring strategic alternatives for the wine assets.

Included in the sale of Fetzer Vineyards are the Fetzer winery, bottling facility, and vineyards, as well as the Fetzer brand and other Hopland-based wines, including Bonterra, Little Black Dress, Jekel, Five Rivers, Bel Arbor, Coldwater

Creek, and Sanctuary. A facility in Paso Robles, CA is also included in the sale.

The sale does not include the Sonoma-Cutrer brand or the company’s long-term agency relationship with Korbel California Champagnes.

The sale is expected to close in April 2011, subject to regulatory approval.

Brown-Forman acquired Fetzer in 1992 from the Fetzer family. At the time of acquisition, the Fetzer company was selling nearly two million cases annually. Under the Brown-Forman stewardship, Fetzer’s depletions grew to more than three million cases in 2010.

The fiscal 2010 net sales contribution

Brown-Forman to sell Fetzer Wine to Vina Concha y Toro

Brown-Forman Travel Retail is launching a new bottle, dubbed “melting ice,” for Finlandia Vodka in Orlando.

Known for its pristine vodka and innovative package design, Finlandia Vodka is made from the purest water in the world -- born from the glacial ice that covered Finland 10,000 years ago, says the company.

The new bottle is designed to capture the gentle ripples at the precise moment before ice moves from solid to liquid, evoking the clarity of the Finlandia it holds.

“Finlandia was the first global premium vodka on the market and is known for its award-winning, progressive design work,” said Jim Perry, managing director for Brown-Forman Travel Retail. “This new bottle once again sets the bar for stunning, yet functional package design. The new design is a work of art, and we hope consumers will be as creative as possible when imagining sustainable ideas for reuse – from a flower vase to a water carafe.”

The new package strives to maintain its strong connection to Finnish design. The bottle was developed through the collective

effort of people like Harri Koskinen, a world-renowned Finnish designer who was instrumental in the development of the prior Finlandia bottle, and Ken Hirst, an award-winning package designer based in New York.

Along with the new look, the brand has revived an iconic piece of its history: the facing reindeer on the logo. The original Finlandia logo depicted Finland’s reindeer locked together while the Midnight Sun glows brightly above.

The bottle also features a redesigned label.

Finlandia is also introducing a new display shipper case for both its classic and flavors. The shipper cases feature close-up images of the new package to emphasize the natural melting ice motif.

Finlandia Vodka launches new “melting ice” package in duty free

Brown-Forman was one of the first spirits companies in the Americas to enhance its POS presentations when it opened the Jack Daniel’s store in Houston airport last year.

Jim Perry, managing director for Brown-Forman Travel Retail, says the Houston store was only the first step in his company’s plans to bring its products past the walls of a typical duty free store.

“The store has been a great experience. Even in the face of declining passenger numbers in that particular terminal during the height of

from these assets was $156 million, including excise taxes.

Vina Concha y Toro S.A. is Latin America’s leading wine producer and currently exports to 135 countries worldwide. Uniquely, it owns around 9,500 hectares of prime vineyards, which allows the company to secure the highest quality grapes for its wine production. Concha y Toro’s portfolio includes a wide range of successful brands at every price point, from the top of the range Don Melchor and Alma-viva to the flagship brand Casillero del Diablo and innovative stand-alone brands such as Palo Alto and Maycas del Limarí.

the recession we saw our Jack Daniel’s sales grow very nicely. The store has given us and our partner, Nuance, the opportunity to engage with consumers at a much deeper level. I believe that traffic has picked up at that terminal over the last several months. Additionally, the use of STEB bags has helped convince European bound passengers to purchase,” says Perry.

“We launched a ‘pop up store’ concept in Sydney, Australia, that we intend to begin introducing into the U.S. and Canada.Away from the airports we created a unique

Finlandia vodka sampling program with Carnival Cruise Lines.”

As Perry looks at what lies ahead for Brown-Forman Travel Retail in the coming months, he pinpoints the return of travelers as the catalyst for his company’s continued growth.

“It may sound simple, but the rapid recovery and huge growth in international airline passengers is the major story. With over 1 billion travelers, the majority above legal drinking age, the global airport travel retail market is an enormous and growing opportunity.”

IT’S NOT SCOTCH.IT’S NOT BOURBON.IT’S JACK.

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INSIDER


Fly through Miami Airport, JFK or LAX. Swim in Half Moon Cay in the Bahamas. Take a trip to Dallas. Visit any of these places and it will be hard to miss a Diageo brand. Over the past year Diageo GTME has prioritized its Americas business and the results are right in front of travelers, touching all of their senses. In these locations, through these activations, travel retail in the Americas has caught up to the rest of the world.

Diageo GTME’s new regional director for the Americas Gregorio Gutierrez has vowed to put the Americas “back on the map.”

“The Americas represent 19% of the total GTME business and growing,” says Gutierrez. “We are investing more in our team, in our talent. We have invested a lot of time not only in bringing new resources, but also creating a breakthrough culture, working on our leadership skills, which is paying off big time.”

Gutierrez is particularly proud of his team, which in the past six months has grown by seven people to thirty-four, representing fifteen different nationalities.

Diageo’s ambitious goal in travel retail is to double the size of the liquor category.

“Our vision for growth for the overall channel is doubling the category, increasing footfall, and retail transformation and innovation through partnerships,” he says.

Diageo’s brand activations and retail transformations are spreading throughout the Americas.

“Retail transformation is a huge part of what we think will compel people to walk into a store. It’s about experience. In the Americas GTME has already experienced retail transformation this year in fourteen outlets. It’s our goal to impact the top twenty before year’s end,” says Eric Breiding, Cruise Customer Director at Diageo GTME. “Retail transformation can enhance the store if you have stores that are low in the evolutionary path of a retail

outlet. Enhancing can make it smarter, correct adjacencies and the brand mix. Transformation can also be as audacious as LAX.”

Tom Bradley International Terminal at LAX

In the beginning of 2011 Diageo partnered with DFS to transform the liquor category within the DFS store located before security at Tom Bradley International Terminal (TBIT) at LAX. The strategy behind the project is to connect with the terminal’s changing passenger mix and to redesign key categories within the store’s original footprint of 12,000 sq ft.

“LA is a prime example of both retail transformation and partnering with DFS. We used DFS’ passenger store data to really understand and pinpoint who are the

passengers going through this airport and this terminal and what they prefer to buy. The liquor section is right in the flow of the store and is the exact category that this passenger prefers. It is all about Scotch in this store and that is what we are taking advantage of,” says Breiding.

In DFS’ TBIT store ultra premium Scotch such as Johnnie Walker Blue and The John Walker sit alongside high-end cognacs and other rare spirits.

TBIT has seen a sustained change in its passenger mix, with more new international flights bringing a significant influx of North Asian passengers plus strong growth from Australia and New Zealand, as LAX is the principal gateway to and from the Asia Pacific region.

DFS and Diageo combined their knowledge of these new travelers and potential shoppers to devise a sophisticated

Diageo partnered with DFS to transform the liquor category within the DFS store located before securuty at Tom Bradley International Terminal at LAX

Diageo GTME “Trinity” partnerships transform the travel retail environment in the Americas

INSIDER


and contemporary approach to category management in these core categories.

“The changing passenger mix is a positive opportunity to do something radical with our store space. We asked Diageo to help us leverage the latent power in the leading brands across key categories. As such they looked beyond their own portfolio and indeed beyond liquor to help us create a holistic approach that provides subtleties of flow and navigation, making the shopping experience both easy and a pleasure,” says John Hoover, Global Vice President- Merchandise Manager Spirits, Wine and Tobacco at DFS.

“LA is the latest example of a total retail transformation where we have been major partners in the design and implementation. Underneath it all you have our trinity model, sometimes even quadrinity, of partnering with airports, with retail, with different stakeholders in our value chain, to create amazing activations,” says Gutierrez.

Tanqueray Exploratorium: JFK, Toronto, Cancun

Before Diageo partnered with DFS in LAX, they worked with several operators

on an immensely creative Tanqueray brand-building activation at JFK T4, Toronto International Airport and Cancun International Airport that ran from April through June 2010.

The centerpiece of the campaign was an Exploratorium; a 4m x 4m square, interactive, free-standing experience mirroring the shape of the Tanqueray bottle. The Exploratorium took consumers through a sensory, educational experience using sight, smell and taste. Each corner featured a various aspect of the spirit, and included an Aroma Wall featuring scents of the botanical ingredients; the Charles Wall conveys a brief history; the Cocktail Wall featured a list of signature cocktails recipes; and the Bottle Heritage Wall further expanded on the heritage of Tanqueray.

At JFK T4 Diageo took its “trinity” one step further, to what Gutierrez called “quadrinity.” Diageo GTME and DFS worked with restaurateurs SSP America and the airport authority to offer live product sampling on the concourse, a first for JFK Terminal 4. The drinks that were offered were also sold in the bars throughout the concourse.

Zacapa in MiamiOne of Diageo’s most visually

stunning brand showcases took place at Miami International Airport in October with its Ron Zacapa Tasting Bar.

The tasting bar, located in a rotunda between gates D25 and D41, in American Airlines and American Eagle’s Latin American and Caribbean hub, was themed upon the legendary aging process of Zacapa Rum “above the clouds.” After distillation, the rum is transported 2300m above sea level, the highest aging facility in the world. To take the shopper on this

journey “above the clouds” the bar used a blend of design and state of the art technology including a projection canopy atop the black and gold-colored circular bar, reminiscent of a hot air balloon. The bar was surrounded by four columns wrapped with Zacapa 23 bottle images on a backdrop of clouds. To further enhance the brand messaging, a series of ceiling-height columns were wrapped with graphics throughout the terminal.

The activation was the first-ever major theatrical brand activation on this scale in North America for Zacapa Rum and is the first in a series of projects Diageo plans for Miami as part of an enhanced focus in the region. The core aim is to raise awareness and sales through exceptional visibility and engagement with target shoppers. An additional focus was sampling activations for the multiple award–winning Zacapa 23. The activity was also complemented by a value offer of 2 bottles of Zacapa 23 for $80 in the DFA store.

“As the vibrant and radically enhanced gateway to Latin America, Miami International is the perfect location to host this unique creation. This activation emphasizes Zacapa’s appeal and we are committed to significantly strengthening its international and premium development in the region this year,” said Emmanuel Herrera, Commercial Manager for Diageo NorthLac.

Gutierrez calls the “above the clouds” activation another example of Diageo GTME’s commitment to its brands in the Americas.

“You see what we did with Zacapa here in Miami. This was the first time that anybody did a program like that in the Miami Airport. It is really breaking through in how we do our business, how our brands show up everywhere,” says Gutierrez.

Diageo’s new Don Julio activation at Dallas/ Fort Worth Airport

The Ron Zacapa Tasting Bar at MIAThe Tanqueray Exploratorium at JFK T4

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INSIDER


Don Julio in DallasDiageo partnered with DFASS and

Reata in Dallas/ Fort Worth International Airport’s first Travel Retail trinity to create a high-energy consumer interaction for Tequila Don Julio on concourse, in duty free stores and in restaurants and bars in Terminal D, which serves both domestic destinations and all international flights.

The promotion kicked off on February 1, 2011, in time to connect with the Super Bowl on February 6, when the city of Dallas was expecting an influx of 250,000 visitors.

The activation centered around Tequila Don Julio’s recently revealed Luxury Drop, which brings together the concepts of shots and high-end mixology in a unique hybrid, creating a premium specialty cocktail in a smaller portion. On February 1, Tequila Don Julio’s master distiller Enrique De Colsa and the Global Brand Ambassador Brian Van Flandern, demonstrated the first luxury drops on the DFW Terminal concourse, educating consumers about the heritage and authenticity of Tequila Don Julio. Mixologists and Brand Ambassadors will follow their lead throughout the activation, which runs through to the end of March.

Van Flandern has led extensive training for brand ambassadors, in-store and restaurant staff to ensure consumers receive an engaging, informative and seamless brand experience.

After experiencing the concourse demonstration, consumers are then invited to the nearby Buckaroo duty free stores, run by DFASS, where there is further in-store theater and sampling of Luxury Drops and Tequila Don Julio neat. Consumers are also directed towards nearby restaurants and bars in the terminal to enjoy a Tequila Don Julio Margarita or Luxury Drop. Menus and table tents in the bars and restaurants provide further visibility for the Tequila Don Julio variants.

“The Don Julio concourse initiative, timed to coincide with the Super Bowl activities, is creating a buzz throughout the airport. I believe this will set the benchmark for future breakthrough projects in Dallas/Fort Worth International Airport and other key venues where Diageo and DFASS can exploit our strategic partnership,” says Jon Potash, Executive Vice President Airport Retail Management & Development DFASS.

Dallas/Fort Worth International Airport is the world’s 3rd busiest airport and one out of every ten connecting passengers in the U.S. passes through it. In 2010 the airport handled 55.6m passengers.

“On the Rocks” in the BahamasDiageo has partnered with Holland

America Line and Carnival Cruise Lines to create an extraordinary new bar experience for passengers sailing to Half Moon Cay in the Bahamas.

They created Captain Morgan on the Rocks, a new bar featured inside an immense 101-foot long twin decked, three-masted schooner on the Holland America owned 2,400 acre private island, which officially opened on Jan. 29.

The bar’s offerings are focused on Captain Morgan Original Spiced Rum and the Captain Morgan range as well as a wide selection of premium drinks from across the Diageo portfolio.

“Captain Morgan on the Rocks expresses our intent … of building amazing relationships with the world’s leading cruise companies and creating fantastic consumer experiences to provide ‘on-trade’ entertainment that gives guests of Holland America Line and Carnival a truly original, engaging and memorable experience,” says Breiding.

The shipwrecked bar/ship-inspired by the history of the real-life privateer Captain Henry Morgan when he sailed the waters over 350 years ago—is full of engaging nautical and historic references, including rum casks for seats, cannon barrels for bar stools and palm leaf-styled ceiling fans.

With a total capacity of 326, the bar features a range of branding concepts, including Captain Morgan logos, messaging and images that are ‘burnt’ into the wood.

“The fun, light- hearted spirit of the Captain Morgan brand is a perfect tie-in to the vibrant and relaxing beach experience of Half Moon Cay. The bar is a wonderful enhancement to the guest experience,” says Paul Goodwin, Executive Vice President, Onboard Revenue, Planning, Port Operations and Tours for Holland America Line.

“Captain Morgan on the Rocks is another fantastic example of a breakthrough in the way we are portraying our brands in a channel that is different from the traditional airport shops where we are also creating innovative new experiences,” concludes Breiding.

Diageo has more plans in the pipeline in the Americas.

“The amazing Tanqueray trinity activation at JFK has spawned a number of different trinity activations throughout the region. This past holiday we activated a trinity partnership with Panama Airport with Johnnie Walker Blue Label and the Greg Norman promotion. We did the same with Blue Label in the Dominican Republic Airport, a trinity approach,” says Heather Volman, Diageo GTME. “There are a number of different areas where we are looking at trinity in the Americas. It has definitely been something that has been a major focus for us in 2011 and will be in 2012 and beyond.”

Captain Morgan’s “On the Rocks” at Half Moon Cay in the Bahamas

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Americas is to increase the amount of dedicated brand space for key brands in store; increasing visibility. In comparison to Europe, the Middle East and Asia, I would say stores in the Americas are still – in some cases – less open to brands being able to create the premium image they require through high profile promotions, in store theater and brand activation. If brands were given more space, they could carry out more sampling, more events and generate more excitement – thus building brand awareness, conversion and sales.”

Elaborating on more of the challenges of the travel retail business in the United States during an interview late last year, Taylor said:

“U.S. Duty Free is a bit of a conundrum for us. We are having a fantastic year in Europe, we are seeing a huge amount of activities. We are seeing a positive response to brands, we are seeing the Middle East pop forward. The Far East business is very much back on track. The States has definitely been slower for us. Historically U.S. Duty Free still has a Duty

With the expansion of its Americas team, highlighted by the appointment of highly recognized spirits executive Stephen Corrigan as Director Travel Retail North America, along with a series of high-profile activities for its award-winning brands throughout the region, William Grant & Sons has a renewed commitment to expanding its business in the Americas.

The company recently announced the appointment of Corrigan, and Pablo Boggio as Brand Activation Manager for the Caribbean Cruise Lines, and will shortly confirm the appointment of a new Trade Marketing Manager for the region.

Ian Taylor, WGS Global Trade Marketing Manager, says the new hires signal a particular focus on the Americas in 2011.

“WGS continues to invest in GTR globally, but with a specific focus on the Americas. We have significantly strengthened our travel retail team in this region,” Taylor tells Insider. “With this significant increase in team size, WGS is well placed to exploit the many opportunities we see in this region, particularly in key airports across the Americas and the Caribbean cruiseline business.”

Taylor sees the global travel retail business as integral to WGS and says the

brands will be highly visible in Americas travel retail in 2011.

“The Global Travel Retail Channel is seen as a vital showcase for developing our global brands. Its importance can be gauged from our approach to Glenfiddich and our mission to rejuvenate the brand this year. That project is entitled ‘The Seven Pillars of Glenfiddich’ and suffice it to say that Global Travel Retail is one of those Pillars. This year, in particular, we are keen to gear up our activity in the Americas and thus this year’s Duty Free Show of the Americas is key for William Grant & Sons. We look forward to meeting our customers there,” he says.

“We would like to be seen as a highly active brand in the Channel and be considered as the leader in innovation and added value within the liquor category, generating in store theater and high profile promotions designed to create exciting brand experiences for the consumer. We see real opportunities to grow our brands in the Americas.”

Taylor says the hiring of Boggio will help seize on the opportunities for WGS on cruise ships.

“We are going to invest quite heavily across the channel. Pablo Boggio is going specifically into the Caribbean to activate on-trade on the Caribbean cruise lines. Pablo has been brought in to create on-trade experiences in bar supported by in-store activity, which I think is absolutely what we need to do,” he says. “If you are talking about appealing to American customers in U.S. Duty Free, surely the Caribbean cruiselines are the most obvious example of U.S. consumers traveling on holiday within the duty free environment. There is huge potential out there.”

While Taylor sees potential in the Americas, he also says there are some obstacles that WGS and all suppliers have to overcome to be successful in the region.

“The biggest challenge in the

Stephen Corrigan,Director Travel Retail North AmericaWilliam Grant & Sons

This year WGS will be launching Glenfiddich Age of Discovery, a 19 Year Old global travel retail exclusive

William Grant intensifies focus on the Americas with expanded team and aggressive brand activities

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INSIDER


Free mentality rather than a Travel Retail mentality. Some operators are very quick to go to price offers, or two for ones, rather than an added value. For us we have made a conscious decision to invest in U.S. Duty Free. It is definitely something that we are looking to do,” he told Insider.

“The experience is absolutely core to everything we do. Our mission statement is to create passionate and engaging brand experiences for the international traveler to share in the home market. It is about positivity. It’s about interaction, and a little bit of learning. If we don’t ask the questions to the consumer, how do we know where to go? With a couple of reasonable questions, you can guide them towards a product that hopefully has more relevance. If you can do that, and then sample it, that is fantastic. Travel retail is a great place. It is a showcase for brands around the world. I think previously we might have missed the link back to the home marketplace. You don’t have to purchase the brand there and then to have a positive experience with it. It may well be that two or three months later you are back at home and you are going to buy a gift for someone and you remember.”

With Corrigan now onboard the WGS team from New York Taylor thinks there will be more of a link between the travel retail and domestic divisions.

“Travel retail and domestic are totally separate business divisions. However, Stephen Corrigan is based out of the William Grant & Sons Inc. office in New York and therefore there will naturally be

a much closer connection. The U.S. duty free brand plans are currently written with close consideration to the U.S. domestic plans and we try, where possible, to link our activity to the domestic plans. This will continue and, indeed, increase.”

Taylor says the biggest advantage for WGS in the Americas is its “outstanding portfolio of premium and super premium brands and products and our passionate and professional staff.”

GLENFIDDICH. This year sees a massive investment in a new look and feel for Glenfiddich, exclusive to travel retail. This is the largest investment in cutting edge merchandising across the channel that Glenfiddich has ever undertaken. It features three ‘Glenfiddich Crystal Stag Gondolas’ placed in travel retail at London Heathrow T5, Frankfurt Terminal 1B Schengen and Dubai T3. Next it rolls out across key airports and venues, including Los Angeles, Vancouver and Toronto, while the new ‘golden’ imagery becomes the flagship for Glenfiddich in all travel retail advertising and promotional activities. This new look and feel in travel retail supports the new global advertising campaign, ‘One Day You Will’, Glenfiddich’s largest global marketing campaign in its 124 year history.

This year WGS will also be launching Glenfiddich Age of Discovery, a 19 Year Old global travel retail exclusive aimed both at gifters and whisky connoisseurs. In Orlando WGS will also be introducing new premium packaging for Glenfiddich 21 Year Old, moving it into the rare range alongside 30, 40 and 50 Year Old. This packaging will be exclusively in travel retail for at least 6 months.

HENDRICK’S GIN. WGS’ super premium gin continues to build distribution in travel retail and is focusing on creating greater image in the Americas in 2011. The past year has seen a number of high profile promotions in the region, including branded till points with International Shoppes at JFK. “We have a number of stand-out, show-stopping promotions planned for 2011, using themes such as our Grandfather Clock, Penny Farthing, and Ice Cream Cart, supported by new retail furniture, sampling and added value promotions to drive sales,” says Taylor. “Our U.S. domestic team is creating a Hendrick’s bar with HMS Host at Newark this year, which will be a real focus at the airport and will help to increase brand awareness.”

THE BALVENIE WGS’ handcrafted Single Malt Scotch Whisky this year launches batch three of The Balvenie Forty. The first batch of just 150 bottles, was launched at TFWA Asia Pacific last year exclusively to travel retail; batch two is available in domestic markets across the globe and due to the incredible demand a third batch, again of only 150 bottles, will be made available this year. The Balvenie offers a truly unique range in travel retail with two global travel retail exclusives in GoldenCask 14 Year Old and The Balvenie Forty, while the limited edition 17 Year Old Peated Cask and The Balvenie PortWood 21 Year Old are bottled at a higher alcoholic strength and are not chill filtered as they are in domestic markets, appealing to gifters and collectors alike.

GRANT’S. For Grant’s Blended Scotch Whisky, the focus continues to be on premiumization with the ongoing roll out of the global travel retail exclusive 25 Year Old and the premium 12 Year Old. This is supported by the global travel retail exclusive Distillery Edition. To support the complete range of Grant’s whiskies, William Grant & Sons is installing a new range of wall bays at key airports across the globe and creating theater in store with a series of high profile sampling activities.

SAILOR JERRY With sales well in excess of 500,000 cases now in U.S. domestic markets, the potential for Sailor Jerry rum in global travel retail, and particularly the Americas, is considered significant. “In 2011 we are looking to

WGS will be introducing new packaging for the Glenfiddich 21 Year Old

Batch three of The Balvenie Forty, limited to just 150 bottles, will be made available this year.

THE RICHARDS GROUP JOB #: 11-0011-PTR CLIENT: Patron TRIM: 8.5 x 11 LIVE: 7.5 x 10.0625 BLEED: 8.75 x 11.125COLORS: 4C/? PUB: Travel Market Insider RELEASE DATE: March 2011 FOR QUESTIONS CALL: Kelley Cowles 214-891-5823 INSERTION DATE: 2011

Perfectionhas a darker side.

An extraordinary blend of Patrón tequila and the pure, natural essence of the finest coffee.

simply perfect.patronspirits.com

The perfect way to enjoy Patrón is responsibly. © 2011 Patrón Spirits International AG, Schaffhausen, Switzerland. 35% Alc./Vol.

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build new distribution across the channel with a particular focus on U.S. airports and the Caribbean,” says Corrigan. “We have now classified Sailor Jerry as one of our core brands, and focus will be put behind it to drive listings in 2011.”

TULLAMORE DEW The purchase of Tullamore Dew last year was the largest acquisition ever made by William Grant & Sons and gains entry into one of the fastest growing and dynamic categories in spirits, Irish Whiskey. Tullamore Dew is currently the world’s second largest Irish Whiskey and has already become a core brand.

STOLICHNAYA. Since 2009 William Grant & Sons has handled the distribution for Stolichnaya in U.S. Duty Free, USVI and Puerto Rico. Sales have grown steadily over the past year and “the activation of the brand will continue apace in 2011. Our plans center around premiumizing

the brand through increased listings of the super premium ‘Elit’ and widening the distribution of the flavors,” says Corrigan. “In Orlando we will also be displaying the first global travel retail exclusive bottle available for many years in U.S. Duty Free. The new travel retail exclusive has incredible impact with a really beautiful label designed by the leading New York artist Yuri Gorbachev. It seems extremely fitting that the exclusive has been designed by a Russian with incredible taste and flair who has made his home in America.”

Stand contacts in Orlando are: Stephen Corrigan Director North America; Jeff Orson, Regional Manager Canada; Jose Castellvi, Regional Manager Latam/Caribbean/US Southern Border; Erik Thomsen, Region Manager Europe; Pablo Boggio, Brand Activation Manager, Caribbean Cruise lines; Ian Taylor, Global Marketing Manager; Emma Humphreys, Marketing Assistant.

2010 was a comeback year for the world’s biggest spirits brands and leading marketers, according to the February issue of Impact magazine, which featured an updated list of the World’s Top 100 Spirits Brands.

Eight of the world’s top 10 premium spirits brands experienced growth in 2010, and five surpassed their volume totals from 2008. Out of the top ten brands only Jose Cuervo and Captain Morgan did not pass their 2009 numbers.

Impact reported that Pernod Ricard chalked up the most spirits in the top 100 premium spirits brands with eighteen brands listed, while Diageo had sixteen brands on the list. Beam Global Spirits & Wine came in third with nine brands on the list, followed by Bacardi with seven, and Brown-Forman with five.

Smirnoff and Bacardi, the world’s two top-selling premium spirits brands, enjoyed solid gains in 2010, and have nearly recovered the ground they lost during the worst of the economic downturn, says Impact. Both brands posted growth in the U.S., their biggest market, as well as in other markets. After losing 1 million cases in 2009, Bacardi gained back 700,000 last year.

In 2010, Johnnie Walker, the number three top-selling premium brand, expanded

by nearly 1 million cases to clear the 16-million-case threshold—more than 2 million cases above where it was four years ago.

Absolut enjoyed its best performance in several years in the U.S., by far its biggest market, with sales up by 2.6% to 4.6 million cases. However, the brand’s growth outside the U.S. was more impressive, jumping 15% to around 6.3 million cases.

Jack Daniel’s posted 4% growth in 2010 (following a 100,000-case increase the previous year), despite a slight dropoff in the U.S. Exports now account for nearly 55% of total brand sales. Along with Captain Morgan, Jack Daniel’s was the only top ten brand to show increases in 2009.

Led by Smirnoff, the world’s top premium vodka brands had a positive year in 2010. Each of the top five sellers—Absolut, Grey Goose, Skyy and Svedka—were on the rise.

While the vast majority of premium entries in the top 100 grew in 2010, the leading liqueur brands continued to struggle. The top five sellers—Baileys, De Kuyper, Southern Comfort, Di Saronno Amaretto and Kahlúa—all either declined, remained flat, or grew by less than 1%.

The non-premium segment of the

overall top 100 list is dominated by three groups: indigenous giants like Jinro Soju (South Korea), Ruang Khao (Thailand), Cachaça 51 (Brazil) and Takara Shochu (Japan); Eastern European and Russian vodkas, such as Khlibniy Dar, Green Mark, Nemiroff and Khortytsa; and Indian whiskies.

Last year, 14 Indian whiskies cracked the top 100 reports Impact, and their aggregate growth rate was more than 13%, following up on 17% growth in 2009. In 2010, only two of the 14 declined. For good measure, eight other Indian spirit brands made the list—all from the rum and brandy categories—and five of them enjoyed double-digit gains.

The fastest growing premium brand from 2005 to 2010 was Pinnacle Vodka, according to Impact,followed by Svedka Vodka, UV Vodka, Three Olives Vodka, and Patrón Tequila.

Grant’s 25 Year Old

Impact magazine calls 2010 a “comeback year” for world’s biggest premium spirit brands

Jack Daniel’s was one of only two of the top ten spirits brands to grow in both 2009 and 2010

aggregate growth rate was more than 13%, following up on 17% growth in 2009. In 2010, only two of the 14 declined. For good measure, eight other Indian spirit brands made the list—all from the rum and brandy categories—and five of them enjoyed double-

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With a full variety of innovative and cutting edge premium spirits and wine brands in its portfolio, Chase International, Inc. reports that its spirits sales enjoyed an excellent year in 2010, with double digit sales growth.

Chase International President Chase Donaldson says that by breaking tradition through representing uniquely different and edgy brands in the U.S. Duty Free market, his company was able to once again have a fantastic year.

“This past year was no exception, breaking from the spirits norm, with the successful launches of Proximo Spirit’s Three Olives Bubble and RangTang Vodkas, Kraken Dark Spiced Rum, Romana Black Sambuca, and Gosling’s Stormy Ginger Beer,” he says. “In the packaging area, we also successfully launched a whole new upscale look on 1800 Reposado, Silver and Añejo Tequilas, the #1 Super-premium Tequila in the U.S. The introduction of these new brands, and the continued success of Appleton Estate Rums, Hpnotiq Liqueur, 1800 Tequilas, Three Olives Vodkas, and Peller Estates Ice Wines, helped Chase International spirits sales rise double digits above the previous year.”

To keep up the momentum, Chase International is introducing an exciting new brand at the IAADFS Show in Orlando that Donaldson thinks will perfectly complement the other spirits it represents.

“We are very pleased and excited to be introducing Hangar 1 Vodkas, a new super-premium brand from Proximo Spirits. Hangar 1 is Pot distilled, and crafted with rare, expensive exotic fruit and flower blossom ingredients which yield a wonderful authentic flavor. Voted ‘Best Flavored Vodka’ by Wine and Spirits Magazine, ‘Vodka of the Year’ by Food and Wine Magazine, and ‘White Spirit of the Year’ by Spirit Journal, Hangar 1 is the only widely-available vodka to our knowledge that doesn’t contain additives or ‘neutral blender.’ Hangar 1 Straight is made from Viognier wine and blended into the finest mid-western wheat vodka,” says Donaldson.

Hangar 1 is also available in a range of other exotic flavors - Buddha’s Hand Citron, Kaffir Lime, and Mandarin Blossom Vodkas, as well as some seasonal varieties, such as Fraser River Raspberry Vodka and Spiced Pear Vodka. Hangar 1 will retail for around $25.00 for the 750ml size in U.S. Duty Free.

After successfully introducing Three Olives Vodka Bubble at last year’s Duty Free Show of the Americas, Chase International is featuring a new unique flavor to launch this year: Three-O DUDE.

“Three Olives Vodka is the fastest growing flavored vodka in the U.S. and growing at double digits. Three Olives is growing at double the national growth rate of 13%. From the seriously fun, super-

premium vodka comes the hottest new flavor of the year, Three-O DUDE, a wild fusion of imported English Vodka and the zingy taste of lemon and lime,” he says. “Last year, we successfully introduced Three Olives Bubble and its sales have been beyond our expectations! Three-O DUDE will be priced around $20.00 for the liter size in duty free. The brand will be backed again by a multi-million dollar ad and TV Campaign for 2011.”

Three Olives Vodka is in the midst of a run of phenomenal success. The brand was just listed as one of the top 75 of the world’s top premium spirits brands by Impact magazine and highlighted as one of

The new Three Olives Three-O DUDE

Chase International is introducing Hangar 1 Vodka at the IAADFS Show in Orlando.

The new ultra-modern packaging for 1800 Tequila

Innovative and cutting edge brands drive growth in the Chase International Spirits Portfolio

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the top five growth brands from 2005-2010.“For Three Olives our sales on the

brand tripled in 2010 due to a number of new listings, extensive advertising and promotional support domestically in the U.S., and two ‘Hot’ new flavor introductions – Three Olives Bubble and Three Olives RangTang Vodka,” says Donaldson.

“We added many new duty free listings for Three Olives this past year including Alpha Orlando, Ammex Detroit Duty Free, Baja Duty Free, Duty Free Americas, EJE Newark, HMSHost, International Shoppes, and Stellar Partners. On the cruiselines the brand is on Carnival, Celebrity, Harding Brothers and Starboard Cruise Services. In the Caribbean new markets are Bermuda, Grand Cayman, St. Maarten, St. Kitts and USVI, among others.”

Donaldson says to expect to see big things this year from 1800 Tequila.

“Our flagship Tequila, 1800 Tequila, remains the #1 Super-premium Tequila in the U.S. 1800 experienced incredible growth in 2010 due to a new facelift, with ultra-modern new packaging, and a multi-million dollar TV advertising campaign running year-round on ESPN, featuring the well-known actor Michael Imperioli, from The Sopranos,” he says.

Chase International added two other new tequilas to the portfolio this year: El Zarco Tequilas – a new, ultra-modern mixto premium double-distilled Tequila in unique and iconic packaging and Bear Hug Tequila Infused Papaya, which joins the other Bear

Hug flavors, Vodka Infused Cranberry, Vodka Infused Espresso, Rum Infused Wild Berry, and Rum Infused Mango.

“We have had solid success with Bear Hug, which is now available through Duty Free Americas and Ammex Detroit Duty Free in the U.S., and throughout the major Caribbean markets of Bermuda, Grand Cayman, St. Maarten and USVI,” said Donaldson.

Stranahan’s Colorado Rocky Mountain Whiskey is another unique new offering from the original American ‘Micro-Distillery’ located in Denver, Colorado. Available in extremely limited supply, Stranahan’s was awarded the Best Small Batch Distillery Whiskey of the year in 2009.

Appleton Estate Rums from J. Wray & Nephew International in Jamaica, which sells well over a million cases a year in 64 countries, and is one of the top 100 premium brands sold in the world today, will be unveiling a new package for its ultra-premium Appleton Estate 21YO Rum. The company is introducing to the Travel Retail market Coruba Jamaica Rum with all natural spices and flavors - available in dark rum, spiced rum, and mango, pineapple and coconut flavors and Appleton’s Master Distiller, Michael Delevante, The Rum Doctor, will be hosting free Appleton Rum Seminars every afternoon by the Appleton Estate bar in the Chase International booth.

Chase International also reports year on year growth with Gosling’s Black Seal Rum imported from Bermuda, sales of

which were helped by the successful launch last year of Gosling’s Stormy Ginger Beer.

Chase International’s Italian spirits -- Pallini Limoncello Liqueur and Romana Sambuca Liqueur from Pallini Internazionale –also grew by double digit sales in U.S. Duty Free retail and major cruiseline accounts, such as Carnival, Celebrity, Royal Caribbean and others. And its distinctive Gozio Amaretto, from Franciacorta S.p.A. is now available throughout the U.S. Travel Retail market. Franciacorta will be introducing a new line of ultra-premium Chardonnay Grappas called Borgo Antico San Vitale.

Other highlights include the expansion of Sazerac Company’s Buffalo Trace Bourbon Whiskey through the cruiselines and a number of U.S. travel retail accounts, the launch of Sazerac’s Eagle Rare Single Barrel Bourbon Whiskey and Firefly Sweet Tea Lemonade and Southern Lemonade RTD’s in a 4-pack. Chase International is also introducing a new gift 50ml 6-pack for Peller Estates Vidal Ice Wine. Another new product Chase International will be introducing this year is Mozart Black Pure Chocolate Liqueur, the only Pure Chocolate Distillate Liqueur on the market made with 87% Cocoa-macerate and precious cocoa distillate.

Donaldson says Chase International owes much of its success to its relationship with its customers and suppliers.

“With the support and partnership of our many customers and suppliers, the strength of our current portfolio of top selling spirit brands, and the introduction of many truly innovative brands, we are confident that we will be able to continue our strong growth in 2011 and beyond. By breaking away from the norm in new products, these brands will also supply some much needed excitement and ‘newness’ to the spirits category in the U.S. Travel Retail market.”

The new Peller Estates 50ml 6-Pack

Buffalo Trace Bourbon Whiskey

Bear Hug Tequila Infused Papaya


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Patrón XO Cafe, which achieved triple-digit percent growth in travel retail sales last year, has quickly become the fastest-growing spirit in the Patrón Spirits portfolio of ultra-premium tequilas, liqueurs, vodka, and rums.

The brand, a unique ultra-premium coffee liqueur made with Patrón Silver tequila, will be of particular focus for the company this year at the 2011 IAADFS Duty Free Show of the Americas in Orlando.

“The success and excitement surrounding Patrón XO Cafe has definitely energized the coffee liqueur category in travel retail,” says Patrón Spirits International COO John McDonnell. “Patrón XO Cafe is now our third-largest selling Patrón product in the duty free channel, behind Patrón Silver and Patrón Añejo, and based on the trends we’re seeing, we predict this product will become our second-largest duty free offering in 2011.”

Patrón Spirits International posted a 53.4% increase in total travel retail sales in 2010, and the company’s total international business was up 59%. Patrón XO Cafe was a significant driver of much of that growth.

In addition to availability in airport, cruiseline and border stores, Patrón earlier this year finalized an agreement with Tourvest Duty Free to list Patrón XO Cafe for the first time for onboard duty free sales, on South African Airways and Kenya Airways.

Much of this success has been influenced by the increasing global acceptance and preference for Patrón tequilas, says the company.

“We finished last year very strongly. Our international business last year was up just shy of sixty percent, which we could not be more proud of. Every brand we had in the portfolio was up and Patrón XO Cafe was really a driver of a lot of that growth,” says Jason Nussbaum, Patrón’s International Brand Manager. “We are seeing great traction both in domestic and duty free arenas. Patrón XO Cafe is a great entry point for consumers both for taste

profile and cost point. It allows consumers into the Patrón franchise and it is a great extension of our brand.”

Distilled at 70 proof, Patrón XO Cafe is a blend of Patrón Silver tequila and coffee to create a unique high-quality liqueur. Because it is tequila-based, the taste is dry, not sweet as with most low-proof coffee liqueurs. The coffee and tequila in Patrón XO Cafe come together to produce a dark, rich spirit, with an aroma and taste of fresh coffee balanced with vanilla notes.

“Consumers across the globe have discovered the unique taste, versatility, and high-quality of our ultra-premium luxury spirits, and that’s reinforced by the growing number of duty free retailers – on the ground and in the sky – that have found success in offering our products to their customers,” added McDonnell.

Patrón products are available in 125 airports worldwide, and almost 700 total duty free outlets.

Also, starting February 1, Patrón Silver tequila was listed for duty free sales on Swiss International Air Lines, where it’s already served inflight in the airline’s first class cabin. Patrón tequilas are also available for purchase during international flights on American Airlines, USAirways, British Airways, Virgin Atlantic, Air Canada, Air Transat, CanJet, Philippine Airlines, Hong Kong Airlines, Hong Kong Express, Air Macau, and Air Niugini.

With its success in travel retail, Patrón has begun creating travel related gifts-with-purchase.

“Within the GWP arena we are trying to develop traveler related items that really are useful to the travelers. Whether it is the personalized luggage tag program, which is really helpful, or the laptop case, which is an extra level of protection, we’ve had a great response from travelers,” says Nussbaum.

Patrón Spirits International will showcase its full portfolio of ultra-premium spirits at the show (Booth 531), including Patrón tequilas and liqueurs, Pyrat rums, and Ultimat vodka.

The Patrón Spirits portfolio includes Gran Patrón Burdeos (a limited-production añejo tequila racked in Bordeaux barrels), Gran Patrón Platinum tequila (triple distilled from top agave), Patrón Silver tequila (smooth, soft and light tequila without an oak flavor), Patrón Reposado tequila (oak-aged for at least two months), Patrón Añejo tequila (oak-aged for a minimum of 12 months), Patrón Citrónge (extra‑fine orange liqueur), Patrón XO Cafe (coffee liqueur), ultra-premium Pyrat rums, and Ultimat ultra‑premium Polish vodka.

Patrón products are available in 125 airports worldwide, and almost 700 total

Also, starting February 1, Patrón Silver tequila was listed for duty free sales on Swiss International Air Lines, where it’s already served inflight in the airline’s first class cabin. Patrón tequilas are also available for purchase during international flights on American Airlines, USAirways, British Airways, Virgin Atlantic, Air Canada, Air Transat, CanJet, Philippine Airlines, Hong Kong Airlines, Hong Kong Express, Air Macau, and Air

With its success in travel retail,

Booming Patrón XO Cafe pushes Patrón Spirits’ international sales to new heights


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Please visit us during IAADFS in MONARQ booth # 1037

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After being unveiled at the TFWA World Exhibition in Cannes, Absolut Vodka’s latest limited edition flavor Absolut Watkins, created exclusively for global travelers, has now launched in duty free/travel retail markets throughout Europe.

“We are thrilled to see yet another innovative product launch from Absolut,” says John Smailes, marketing director Pernod Ricard Travel Retail Europe. “We are confident the flavor combination will appeal to the adventurous European traveler and the unique bottle design will become a covetable collector’s piece. The in-store tastings will add theater to the launch and encourage consumers to experiment with the original cocktail recipes.”

Absolut Watkins is a truly innovative new flavor; rich, and smooth in taste and aroma with the distinct, luxurious qualities of freshly ground coffee with notes of almond, caramel and warm chili.

The extravagant decor of the unique limited edition Absolut Watkins bottle is created by celebrated Swedish fashion illustrator and artist, Liselotte Watkins, famous for her designs for fashion brands such as Miu Miu, Anna Sui and Barney’s as well as for magazines such as VOGUE andThe New Yorker.

“Having my name on the Absolut bottle is crazy and fantastic,” said Stockholm and Milan based Watkins. “I’m Swedish, so the brand has always been there for me, and looking back at previous Absolut collaborations, it’s truly a great

honor to be in that company. With my bottle decor and the campaign imagery, I wanted to convey something of my own vision regarding the archetype of cosmopolitan glamour.”

The Absolut Watkins launch is backed by a powerful 360-degree marketing campaign in duty free/travel retail, including unique in-store brand installations. The launch premiered in Amsterdam Schiphol in January 2011, followed by launches in Sweden at Arlanda airport in February and in Paris Charles de Gaulle later in the month. Absolut Watkins will be rolled out throughout April in London Heathrow, Istanbul, Rome and

Frankfurt and the Americas.“Absolut Watkins is a most exciting

launch for us indeed,” said Anders Olsson, Director of The Absolut Company Global Travel Retail. “Since our target group is global travelers, and all of our operations are all about traveling, it’s a treat for us to be able to celebrate the entire concept of stylish travel with a brand new and unique product.”

A special signature cocktail has been created, Absolut Watkins and Cola, with Absolut Watkins and cola simply poured over ice. The exclusive Absolut Watkins campaign is being executed worldwide by Pernod Ricard Travel Retail.

Distilleria Bottega has expanded its range of sparkling wines with the

introduction of Bottega Diamond, “a jewel bottle” enriched by a series of small crystals that reproduce the Bottega logo.

The sparkling wine, produced according to the long Charmat method with a selection of Pinot Noir grapes from Oltrepò Pavese, is a well-structured wine with a long finish and full width that is an excellent aperitif and goes well with appetizers, seafood and cheeses, says the company.

Bottega Diamond joins Bottega Gold, a sparkling wine featuring an exceptionally aromatic bouquet that comes from a special selection of grapes picked in a slightly late season on the province of Treviso, in Eastern Veneto, about 60 km from Venice.

The gilding of the bottle, besides its aesthetic impact, serves to protect the wine against any source of light, keeping the features of the grapes unchanged for over 12 months.

Artsy Absolut TR exclusive rolls out to global travelers

Diamonds and Gold sparklefor Distilleria Bottega

AbsolutWatkins at Amsterdam SchipholAirport during its launch in January


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Rémy Cointreau Travel Retail Americas will present Rémy Martin Centaure de Diamant at the IAADFS Duty Free Show of the Americas.

The new expression from Rémy Martin Fine Champagne Cognac, which was created exclusively for travel retail and previewed in Cannes in October, is set to appear in key airports across the Americas including New York, Washington, Los Angeles, San Francisco, Chicago, Vancouver, Puerto Rico and also on cruiselines.

The new Rémy Martin Centaure de Diamant is presented in a chiseledglass carafe with highly polished facets which set

off its deep mahogany tones, topped with a silver collar and cabochon stopper bearing the centaur emblem of Rémy Martin.

The carafe nestles in an elegant presentation coffret in metallic silver with beveled edges which is designed to open backwards to reveal the decanter and act as a display case on shelf.

Rémy Martin Centaure de Diamant consists of between 300 and 400 of the most precious eaux-de-vie selected by the cellar master from the coveted Grande and Petite Champagne crus and blended to enhance their individual characteristics over many years.

These rare eaux-de-vie each gained the highest rating that can be awarded by the House of Rémy Martin to the wine grower and distiller.

Rémy Martin Centaure de Diamant Fine Champagne Cognac offers a myriad of rich, intense flavors on the palate. On the nose it presents delicate floral notes of honeysuckle and iris, with an aromatic heart of late summer fruits such as plum and fig, followed by a suggestion of grated hazelnuts, candied orange and saffron, and ending with a touch of jasmine.

RCTRA will also be previewing the Rémy Martin VSOP Limited Edition, a travel retail exclusive created especially for the 64th Cannes Film Festival which starts on May 11, 2011.

Rémy Martin Fine Champagne Cognac has been the official partner of the Cannes Film Festival for seven years and this spring will focus on the Limited Edition, which celebrates the art of cinema.

Last year a Rémy Martin VSOP Cannes Limited Edition in glamorous red

attire took center stage in a few key airports including Nice and Paris.

Rémy Cointreau Global Travel Retail will stage-manage the debut of the Rémy Martin VSOP Cannes Limited Edition 1.5 liter magnum in dramatic black, dressed with gold-colored celluloid film to celebrate the golden era of cinema.

Just 700 individually numbered Rémy Martin VSOP Cannes Limited Edition bottles will be available exclusively in travel retail and duty free outlets in major airports around the world from March to May 2011. A one-liter limited edition will also be available.

Rémy Martin Centaure de Diamant and the Rémy Martin VSOP Limited Edition will be exhibited by Rémy CointreauTravel Retail Americas at booth 113 at the IAADFS Duty Free Show in Orlando.

Retail Americas will present Rémy Martin Centaure de Diamant at the IAADFS Duty Free Show of the Americas.

Rémy Martin Fine Champagne Cognac, which was created exclusively for travel retail and previewed in Cannes in October, is set to appear

airports around the world from March to May 2011. A one-liter limited edition will also be available.

Rémy Martin Centaure de Diamant and the Rémy Martin VSOP Limited Edition will be exhibited

Maxxium Travel Retail is partnering with Virgin Atlantic to offer VA’s Upper Class passengers a unique, premium experience with Courvoisier both onboard and in the airline’s Clubhouse at London Heathrow.

Onboard, Courvoisier is the new pouring cognac and bottles of Courvoisier VSOP are available for purchase, with a pre-order service for Courvoisier XO and L’Essence de Courvoisier. Marketing support includes a 3D film about the heritage of Courvoisier on the inflight entertainment system.

At the Virgin Atlantic Clubhouse bar, passengers can now enjoy Courvoisier XO and Courvoisier Exclusif, served neat or in cocktails. Bartenders will undertake training on the Courvoisier brand and

specifically Courvoisier Exclusif, the marque designed specifically for cocktails.

A dessert paired with Courvoisier has been specially created for passengers dining in the Clubhouse and there is a competition to win a bottle of L’Essence

de Courvoisier, which retails at €2000. The sensory experience, Le Nez de Courvoisier, designed to help consumers understand the complexity of cognac and to have a greater appreciation of the Courvoisier house style, ran weekly at launch in December.

Rémy Cointreau TRA launches two extraordinary travel retail exclusives

Courvoisier begins cognac alliance with Virgin Atlantic


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Courvoisier® Cognac, 40% alc./vol. Courvoisier Import Company, Deerfield, IL, USA. Courvoisier, the Napoleon device and Le Cognac de Napoleon are trademarks of Courvoisier S.A.S. ©2010 Courvoisier S.A.S.

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Courvoisier® Cognac, 40% alc./vol. Courvoisier Import Company, Deerfield, IL, USA. Courvoisier, the Napoleon device and Le Cognac de Napoleon are trademarks of Courvoisier S.A.S. ©2010 Courvoisier S.A.S.6PT

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Russian Standard Gold, will make its debut in the Americas in March at the IAADFS Duty Free Show of the Americas “stage-managed” by Rémy Cointreau Travel Retail Americas.

Russian Standard Gold is a unique combination of Dmitry Mendeleev’s classic vodka recipe dating from 1894 using the finest Russian ingredients and carefully selected extracts of Siberian ginseng, or ‘golden root’ in Russian, providing it with an exceptionally soft taste.

This premium expression, which was unveiled in Russia in 2008, is already listed in major travel retail outlets in Europe and Asia.

After being previewed in Orlando it will be launched with International Shoppes in New York JFK airport in May before being rolled out across the Americas.

Russian Standard Vodka is the global leader in authentic Russian premium vodka with 70 export markets across Europe, Asia and the U.S. and 60% of premium vodka sales in Russia.

Rémy Cointreau GTR and Russian Standard Vodka launched a high visibility duty free promotion for Russian Standard Original and Russian Standard Platinum in

key U.S. airports last year which created considerable excitement around the brand.

In 2010, Russian Standard successfully consolidated its position in focus markets, showing impressive results for a post-crisis year with total sales of 2.5 million 9L cases, according to the company.

In Russian Standard’s key international markets – the U.S., the U.K., Germany, and Australia – the brand achieved significant growth in 2010. In the United States, Russian Standard grew by over 30%, with Russian Standard Platinum showing 62% growth.

Last year, Russian Standard Vodka purchased the Buinsky Spirit Distillery through an agreement with the government of the Republic of Tatarstan. This acquisition will result in the creation of a vertically-integrated company by providing Russian Standard with its own spirit production facility.

In 2011, a full-scale modernization program is planned for the newly acquired spirit distillery with an investment volume of $8 - $10 million.

“While many premium brands struggled in 2010, Russian Standard achieved a clear breakthrough in its

international expansion, surpassing established brands such as Smirnoff and Absolut in some markets. In the last decade, no other premium spirit brand has been able to achieve the global reach and success of Russian Standard Vodka, achieved just in 11 years,” said Roustam Tariko, founder and chairman of Russian Standard.

Plans for 2011 include further global expansion via increased sales both in Russia and abroad; continued investments in marketing and advertising; and production tweaks at the brand’s new distillery. Russian Standard’s global aim is to become one of the three leading premium vodka producers in the world.

Russian Standard will be exhibited by Rémy Cointreau Travel Retail Americas at booth 113 at the IAADFS Duty Free Show in Orlando.

Rémy Cointreau launches Russian Standard Gold in Americas

Beam Global Spirits & Wine has launched a range of premium, city-specific gift travel retail exclusive packs for its handcrafted bourbon, Maker’s Mark, as part of its longer term strategy to grow the brand globally.

Designed to inspire travelers, the

achieved just in 11 years,” said Roustam Tariko, founder and chairman of Russian Standard.

Plans for 2011 include further global expansion via increased sales both in Russia

investments in marketing

production tweaks at the

Russian Standard’s global

producers in the world.

range of collectible packs is available in major passenger hubs.

Each of the 12 ‘The Mark Of…’ limited edition packs features a different city, including six European cities - London, Paris, Amsterdam, Moscow, Madrid and Barcelona and six across the

U.S. - Manhattan, Washington DC, Miami, Los Angeles, Chicago and San Francisco. The packs, which are available exclusively in these cities’ airports from January 2011 for 12 months, show a classic and instantly recognizable skyline of each city, with the iconic Maker’s Mark bottle boldly planted throughout each vista. Other cities are expected to join the line-up later in the year.

The new travel retail packs are part of Beam’s up-weighted focus on Maker’s Mark internationally.

A high impact airport campaign, created to enhance the travel experience, is underway and will raise awareness for Maker’s Mark amongst passengers and encompass advertising, in-store education and secondary displays.

Beam’s director for European travel retail, Gareth Brown, says: “This launch is part of the international expansion of the brand outside of North America. Travel retail is an important channel as it is a showcase arena and the conduit between key domestic markets. These unique and innovative packs illustrate Maker’s Mark’s character and demonstrate our commitment to building Maker’s Mark in travel retail and around the world, establishing an emotional link with passengers and enriching the travel experience.”

Maker’s Mark is distributed via Maxxium Travel Retail.

Miami, Los Angeles, Chicago and San Francisco. The packs, which are available exclusively in these cities’ airports from January 2011 for 12 months, show a classic and instantly

with the iconic Maker’s Mark bottle

vista. Other cities are expected to join the line-up later in the year.

Maker’s Mark launches skyline gift packs


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World Equity Brand Builders will showcase the new additions to its portfolio from the Edrington Company, along with it strong and growing existing brands, at the IAADFS Duty Free Show of the Americas in Orlando this year.

“The big news at this show is that at the end of 2010 WEBB signed with the Edrington Company. We are now the distributor for the Edrington brands in the Caribbean,” says Andy Consuegra, president of the Miami-based marketing and distribution company.

Consuegra says WEBB will handle the Caribbean domestic markets as well as some of the smaller duty free markets in the region for the Edrington portfolio.

“We continue in the Caribbean with Cutty Sark, which Edrington acquired last Spring. We added in Q4 2010 the number two single malt in the world, The Macallan Single Malt, for the Caribbean. Plus we added Highland Park Single Malt and The Famous Grouse to the portfolio.”

Consuegra is also particularly pleased about the addition of Brugal rum to the WEBB portfolio

“Edrington put Brugal in our portfolio for the Caribbean. That is just fantastic. Brugal is a very strong brand, the number three rum brand in the world. We think it complements the whole portfolio very well.”

Even before the new additions, Consuegra said 2010 was the best year WEBB has had in its now three years in business.

“I am happy to report that we had a great year, our best year yet. We grew our business 69% last year, helped by the organic growth of the brands we had at the beginning of the year as well as the brands that we launched at the show last year, which were Armand de Brignac champagne, the number one rated Champagne in the world, and St-Germain liqueur,” he says. “We are operating now in 30 markets and working with 60 distributors, plus the cruiselines. We are pretty much on every cruiseline. We are working from everywhere with one to six distributors per market primarily in the Caribbean and Central America.”

The two brands the fast-growing company launched at last year’s IAADFS Show have quickly become two of WEBB’s best-selling products.

“We are now selling Armand de Brignac champagne in just about all of the islands in the Caribbean and some markets in Central America. Armand de Brignac exceeded our expectation and is one of our top brands now in the company. It is a brand that continues to get incredible press, and is in demand from both wine collectors as well as artists and musicians. So it is a nice combination. It has done very, very well for us.”

WEBB also introduced St-Germain liqueur, an all natural artisanal French liqueur made from hand picked elderflowers near the Alps, which does very well on-premise.

“St-Germain had a great year for us as well. We are now in thirteen markets with the brand, very focused mainly in the on-trade business and in duty free stores in the Caribbean,” he says. “We have St-Germain at International Shoppes at JFK and it has done very well there. We have tastings in the stores at T1 and T8 about once a month and are pleased with the sales there. St-Germain is focused. Where we are promoting the brand it is doing very, very well. It is one of our top brands as well.

St-Germain creator Robert Cooper, the former owner of Chambord, will be in WEBB’s booth in Orlando showing off his creation, which is the darling of bartenders in many top bars.

“The consumers are discovering St-Germain, but what is driving it is the bartenders have really gotten behind the brand. You can make so many different types of drinks with it. It is really like a cocktail enhancer as opposed to a cocktail ingredient.”

Consuegra says WEBB continues to seek the right balance between spirits and wine.

“Overall our portfolio is very balanced between spirits and wine. Our business with wine continues to do very well. The Spanish wines had a really good year last year. They grew 35%. They are part of the Diego Zamora brands, which includes

Licor 43,” he says. “Mar de Fardes, a brand from northern Spain, is doing very well in the Caribbean. It goes really well with seafood and it is very refreshing. The Spanish wines do well in the Dominican Republic and Puerto Rico, but it has gone beyond that now. The Spanish segment in the U.S. is doing very well and the Caribbean is now following that trend.”

“We are also adding five brands from the Treasury Wine Estates Group, which is part of Foster’s. We are just starting to roll them out in the Caribbean.”

“A brand that has really surprised us, a sparkling wine with fruit from Chile called Envy, is now in five markets in the Caribbean. It’s doing exceptionally well in Barbados. We launched the brand Q4 2010 and it has just been on fire for us,” he says. “We also launched Jamaica, USVI, and the Bahamas and hope to be in all the markets by summertime.”

“We grew our Flor de Cana business by 50%. It is doing very well in Cayman, both domestic and duty free, as well as in St. Martin. We are also just now getting listed into International Shoppes in New York. We call it the most medaled brand in the world, because it has won wore medals than any other rum brand over the past five years.”

Consuegra also praises Blanton’s bourbon, calling it one of those boutique brands that talks primarily to the American male consumer.”

WEBB will be exhibiting at Booth #1433.

WEBB moves forward with Edrington; reports best year ever in 2010


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Monarq Group has reached an agreement with Mott’s Snapple, for the management, distribution and marketing of Mr&Mrs T, Rose’s, ReaLemon / ReaLime and Clamato in the majority of the Caribbean markets as of January 1, 2011. As part of the new strategic direction, the brands will be repositioned, whereas the regional marketing strategy will be linked more closely to the alcoholic beverage distribution.

Robert de Monchy, MD and owner of Monarq Group says, “Our portfolio did not include non-alcoholic mixers, and it was an area where we saw a real business synergy, so we are proud to welcome the leaders in their respective categories to the Monarq family. This is obviously a great addition to our portfolio of leading alcoholic beverages and a perfect fit with our current business.”

Geoffrey Markle, Regional Director Caribbean & USA Duty Free adds: “We are looking forward to working with the Mott’s Snapple International team and, of course, our Caribbean distribution partners to build a new success in partnership.”

Monarq B.V. was established in 2006 by Robert de Monchy, former General Manager of Remy Caribbean & Latin America, as a regional distribution and brand building company for the Americas (excluding USA and Canada domestic markets).

Besides the newly added Mr&Mrs T, Rose’s, ReaLime / ReaLemon and Clamato, Monarq represents and manages a portfolio of premium beverages such as Heineken, Bols, Galliano, Molinari, Norton, Voga, Taittinger, Verdi, Laroche, Cachaca 51, La Fée, Disaronno and Tia Maria.

In a significant development for the company, Harston Group launched a new division, Harston Cellars, which will specialize in the distribution of premium quality and niche wines from Europe and the New World.

“We’re very excited about this new departure, and are very much looking forward to discussing our vision and strategy for wines in travel retail at the Show in Orlando,” says Margaret Taylor, Harston Managing Director.

According to Taylor, the company has been studying the wine sector within travel retail for some time. “It’s clearly growing and becoming more established as a viable category that retailers are taking more seriously. We believe there is definitely room to introduce medium and top level wines into travel retail, aimed at an increasing population of wine connoisseur,” says Taylor.

During the past year, Harston, formed agreements with a number of wine companies to represent them in travel retail. The portfolio they put together includes superior, award-winning wines from leading wine-making groups and specialist wineries, initially in France, Italy, Spain, the U.S., Chile and Argentina.

Harston Cellars has highly respected vintner Michel Rolland offering his Rolland Collection, which includes a range of Bordeaux wines with five appellations from the Right Bank as well as carefully chosen selections from Argentina, South Africa and Spain.

Harston Cellars is also working with the much acclaimed Barton & Guestier, which offers Thomas Barton, Ch Magnol and a diverse range of AOC and Varietal wines from the main French wine growing regions.

From Chile comes the premium Montes wines (initially only available to Asia), including the acclaimed Montes Alpha ‘M’, Montes Folly, and Purple Angel. Harston has also agreed to represent Stag’s Leap of Napa Valley, CA and Chateau Ste Michelle, of Washington.

From Spain come wines of the Herederos de Marqués de Riscal, a leading and pioneering company in the wine producing sector.

Harston offerings from Italy include the wines of Castello Banfi, a family-owned vineyard estate and winery in the Brunello region of Tuscany.

Harston Cellars is exhibiting at the Duty Free Show of the Americas at Booth 931. W.B.

Harston Cellars launched to offer quality wines for travel retail

Monarq Group mixes it up with Mott’s in its Caribbean portfolio

Highland Park will launch the travel retail exclusive Highland Park Leif Eriksson in Orlando.

Following the duty free show, the limited edition Single Malt Scotch Whisky, which celebrates the achievement of the first European traveler to reach America over a thousand years ago, will be available in selected airports across the U.S. and then rolled out in key travel retail outlets worldwide.

Highland Park Leif Eriksson is bottled at 40% ABV and will retail at US$88.

Leif Eriksson returns to America


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were presented with a cash prize of $5,000.00 each and the other semi-finalists awarded $500.00 each. Bacardi will also sponsor an onboard event for the ship that enters the most submissions.

In addition, the MHA offers the Bacardi Bartender of the Year and Bacardi Chef of the Year a five-day intensive High Performance Leadership course of study for cruise industry professionals at Florida International University (FIU) School of Hospitality & Tourism Management.

The judging panel included key food & beverage executives from Norwegian Cruise Lines, RCCL, Princess, Celebrity and Celebration Cruiselines, plus cocktail specialists and journalists within the

The winners of the sixth annual Bacardi Cruise Competition were announced just days before the start of the 2011 Duty Free Show of the Americas during an exclusive dinner at Miami Beach’s famed restaurant, The Forge Restaurant.

The awards dinner took place at the same venue as the VIP judging, which was held in January, with a distinguished panel of cruiseline executives, media and spirits experts meeting to choose the Chef and Bartender of the Year.

Since Bacardi launched the competition in 2005 as a way to support the cruise industry and its talented artisans, recognize innovation onboard the world’s best cruise and ferry lines, and foster a path for staff to further their trade expertise, the contest has grown into a key industry event.

This year, the BCC had a record-breaking 1600 entries; up 77% from last year. Entries came from 27 different cruise and ferry lines around the world. The 1600 recipes were narrowed down to five cocktail category winners and five culinary category winners chosen by global brand ambassadors and mixologists, as well as local culinary experts from Le Cordon Bleu and Chef Dewey Losasso from the Forge Restaurant.

In cooperation with the Marine Hotel Association (MHA), the Bacardi Bartender of the Year and Bacardi Chef of the Year

food and drink media. Both the cocktail and culinary recipes included the use of different Bacardi products.

Bacardi’s 6th annual Cruise Competition Bartender and Chef of the Year attracts record number of entries

SMT Duty Free’s Jorge Azel, Jr. with Bacardi’s David Hogan, Travel Retail Manager, and Zachary Sulkes, Regional Travel Retail Manager

The VIP Judges for the 6th Bacardi Bartender & Chef of the Year Cruise Competition

Bacardi Global Travel Retail has announced that Leigh Irvine has been appointed as the new Regional Director for the Americas Region. Leigh was previously the Regional Director for Western Europe where for the last three years he has been instrumental in developing the growth of the Bacardi Travel Retail business across the UK, France, Spain, Italy, the Netherlands and Belgium.

In the 15 years he has spent in Travel Retail, Leigh has gained invaluable experience as both supplier and customer. He began his career as a buyer for the Nuance Group and prior to joining Bacardi Travel Retail in 2007, he was a senior

buyer for World Duty Free, part of the Autogrill Group.

Commenting on the appointment, Andrew Carter, Managing Director, Bacardi Global Travel Retail Division, said: “No one is better qualified than Leigh Irvine to lead our Americas Travel Retail team. His understanding of both the retailer and consumer means he is ideally placed to build strong customer partnerships and engaging experiences across the Americas airport and cruise channels.”

Leigh will be based in Miami and will commence his new role from April 1.

The new Regional Director for Western Europe will be announced shortly.

Bacardi Global Travel Retail appoints Leigh Irvine as new Regional Director for the Americas

Leigh Irvine

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taste is incredible. Ginger is on fire right now. There are so many drinks with ginger as an ingredient. We are going to expose it at the show. We will have one of their head people at the show.”

Prairie Organic Vodka is also garnering attention.

“Prairie Organic Vodka, which was just listed by Harding Brothers, is certified both kosher and organic,” he says.

“Another interesting brand is Bombora, the only vodka produced and distilled in Australia. It looks like P & O is going to put this onboard the ships out of Australia as a destination item. Cruise passengers will see it in the local market in Australia and then know that the price on the ship is better,” he says. “We have a program set up for duty free where the consumer can win a free surfboard.”

UV Vodka is one hot brand that Specialty Brands will have in Orlando. Impact magazine just named UV Vodka as the second fastest-growing premium spirits brand from 2005-2010.

“Our value-priced UV Vodka now sells more than a million cases in the U.S. We are starting to get domestic placements in the Caribbean and Latin America and are already selling it in Guatemala,” says Syner.

No. 209 Gin, which Syner thinks has great potential, features a unique history dating back to 1882.

“The packaging is beautiful and it really tastes good. We are just getting it off the ground,” says Syner.

One of Syner’s duty free successes is Rum Chata, which has been at Dynasty Dazzlers in St. Thomas for half a year.

The company will also introduce T-1, Tequila Uno at the show.

“T-1 is doing very well in Mexico. We have a very unique program where a consumer or a retailer can buy a barrel, which holds 37 cases, and have it personalized, aged, and you can tell them when you want it bottled. Each bottle will be numbered. This is very high end, in the $45 range.”

Specialty Brands will also be introducing Glen Scanlan Scotch at the show.

“I try to do something a little different all the time. My crazy sleeper item of the year is Cream, infused whipped cream in a can, 30 proof. You can do anything with it. It is on and off-premise. It retails for $13.95. It is doing phenomenal in the U.S. It is a wild item that goes after the 21-35 year olds.”

Specialty Brands has also limited its wine portfolio to only California wines.

“Going into 2011 we have made a decision to reduce our wine portfolio to California winesand have droppedall of our imported brands.We have securedbrandsthat have a very strong presencein the wine spectatorwith ratings in the high 90s and brands that are at a price level that allow our current distributor network to have high volume levels.”price level that allow our current distributor

Specialty Brands brings “21st century brands” to Orlando

South Florida-based Specialty Brands Wines & Spirits continues to grow its business in the domestic export markets, and will be exhibiting in an expanded booth this year in Orlando, says company President Bob Syner.

“There are six different suppliers that will be on hand in the Specialty Brands booth. We have some exciting new products that we are anxious to show off. We’ve got marketing programs to back up almost every one of the key brands,” says Syner, who will be exhibiting at booth 901.

Specialty Brands is focusing on filling both the high-end and low-end segments of the market, plus filling in with brands that fall in the middle, says Syner.

“We continue to strengthen our portfolio in each of the three spirit categories: Ultra Premium, Premium, and Value price brands,” he says. “Even with distribution in many of these areas we have many brands that we can place with additional distributors that are looking to fill holes in their current portfolios.”

While Specialty Brands deals almost exclusively in domestic markets, Syner says his brands also should have success in duty free, where several of his brands are already listed.

“We’ve got a lot of what I call ‘21st century brands.’ If you give these brands a chance, they can prove that they can do well. I don’t know

how to break into duty free except come up with more innovative ideas. To our friends in duty free we continue to wait for that company willing to go out side of the box and try one of our ‘21st century brands,’” he says.

One of Syner’s most exciting brands is Domain De Canton Ginger Liqeur.

“Domain De Canton is the only ginger liqueur made with VSOP Cognac. It is doing 40,000 cases already in the U.S. The package is to die for and the


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Travel Retail veteran José B. Chao has officially launched Horizon International Duty Free, a new company that will represent premium brands in traditional travel retail channels.

Chao, with more than 25 years of experience representing luxury goods, including 12 years in the world-wide duty free industry, brings his expertise to

promoting both established and developing brands as President of the new company.

Horizon International Duty Free will represent the full range of duty free/travel retail categories including wines and spirits, cigarettes, confections, beauty, and accessories, primarily in the Americas but also globally.

“Horizon’s points of difference include being ‘shopper-centric’; fact-based; innovative; corporate yet entrepreneurial; and fully committed to the brand-building process, which will be a major focus of the company,” explains Chao.

“Our aim is to drive value and market share growth for our customers, as well as for their retail partners. Our activities will focus on raising brand awareness and enhancing brand image.”

Chao says that Horizon International Duty Free has the flexibility to serve brands as agent, distributor, and/ or marketing

consultant. In addition, Horizon has the capability to provide complete logistics services – including customs clearance, bonded warehousing, and real-time inventory tracking -- making it one of the few truly integrated travel retail companies.

Chao tells Insider that one of the new brands in the portfolio is U’Luvka, a luxury vodka that is perfectly suited for Travel Retail. Chao is representing the brand in the Americas as well as providing additional consultancy services for the launch in other markets, both domestic and Travel Retail.

The new company is already working with a number of other brands as well, which will be announced shortly. In the coming months, Horizon International will attend IAADFS, MHA, TFAP and ASUTIL.

For more information, contact José B. Chao at [email protected].

TR Veteran José Chao launches Horizon International Duty Free

José B. Chao

We’re building the brands of the future - Find us at IAADFS Stand #801© Horizon International Duty Free - phone - 305-716-9993 - fax - 305-591-3547 - www.horizonintdf.com

A BRIGHTER FUTURE IS JUST OVER THE HORIZON

Horizon International Duty Free showcases an exciting line up of premium and luxury brands with a global reach and regional focus in US, Caribbean, and Latin American markets.

WE VALUEINNOVATION BRAND BUILDINGCUSTOMER SERVICE

Portfolio Brands IncludeU’Luvka Polish VodkaVice Vodka IcewineTortuga Rum CakesTequilas de la Doña

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The first official Guinness Store in the United States had its grand opening inside the Shoppes at Mandalay Place on the world famous Las Vegas Strip on St. Patrick’s Day, Thursday, March 17, 2011.

Home to a wide range of Guinness merchandise, including unique Las Vegas products, the 1,500 square foot Guinness Store Las Vegas will feature items ranging from pint glasses to clothing; accessories to gift items, which graphically celebrate more than 250 years of the iconic Guinness brand.

Exclusive Las Vegas themed merchandise will include men’s clothing, women’s clothing, pint glasses, hats, accessories and much more. Several of the clothing items for men and women will be part of the one-of-a-kind “Guinness On the Strip” clothing line, which combines the uniqueness of Guinness merchandise with the extravagance of the Las Vegas Strip.

“When researching destinations for the first Guinness Store in the United States,

Las Vegas immediately jumped out at us as a perfect fit,” said Patrick Hughes, Brand Director, Guinness. “We want to offer our customers an experience that they cannot find anywhere in the United States and this store will surely provide that experience.”

With the largest selection of Guinness merchandise located in one venue outside of Ireland, the Guinness Store Las Vegas will be a “must see” destination filled with true Irish hospitality, says the company. Visitors to the store will not only have the opportunity to purchase quality Guinness products, they can learn about the brewing process and the Guinness brand through visual exhibitions showcasing its legacy and the strength of its advertising.

Visitors will even be able to get customized official Guinness pint glasses with their name or with a commemoration date of their trip to Las Vegas. Another interactive element within the store will be a unique touch screen where visitors can learn about the rich history of the Guinness

brewery and even see if one of their ancestors worked for the brewery.

The Guinness Store will be open from 10 a.m. to 11 p.m. daily inside the Shoppes at Mandalay Place.

With increasing restrictions on glass bottles at sporting events, on cruise ships, and on airplanes, Colorado Foods CEO Joe Peleg thinks he has the perfect product to fill in the gap: Friends Just Wine Genuine French Wine in a Can.

Peleg says that the lightweight aluminum packaging on Friends Just Wine, developed with a company called Rexam, gives his wine several advantages over wine in glass bottles.

“Friends Just Wine is a special can with a long shelf life that tastes great. If you taste the wine you are going to see that it is excellent. It is ideal for both airlines and cruiselines,” says Peleg. “The

aluminum is 100% recyclable and the wine comes in a non-breakable, tamper proof container. The wine-in-a-can preserves and maintains its composition unchanged for 36 months and the product is canned without any preservatives or additives. It is lightweight and easy to store.”

The individually sized aluminum containers are ideal for situations where an individual serving is required, such as airlines, trains, boats, outdoor events, nightclubs, cafes and sporting events, says the company.

“The three things that were really the most important that I had in my head when I started to develop this project was that the wine would sell at a great price; it would taste great. This is a daily wine for people who understand wine and also for people who do not; and third was the design. The design is beautiful.”

Peleg says both cruiselines and airlines have already expressed interest.

“Some of the cruiselines were interested. One of them already said that they would like to take it to their private islands,” he says. “I know 100% it will be a

great item for the airlines and we are right now starting to work with a few of them. I think in a year they will take away most of the glass on the planes. Usually when you are buying a wine in an airline the wine is not good. You can get a good wine in the first class, but usually in Economy the wines are not good, because they get it at a price that is really low. Our budget is really good for the airlines. The second thing is the design and the size. They can sell more wine in a can than wine in a bottle.”

Although Friends Just Wine is a wine, Peleg says he sees his competition more as other canned drinks instead of other wines.

“We see our competition as beer and soda. Not wine. I don’t want to go into the wine business at all. We are not coming to say we have a vintage wine. You get a very good table wine,” he says.

“The price for a pack of four will be around $8. And a pack of two will be something like $4.50. It is very reasonable.”

The wine is currently available in two flavors, French Melon White wine and Cabernet Merlot, and in two sizes, 250 ml and 187 ml.

Make Friends with a Wine in a Can

Guinness opens first store in U.S. in Las Vegas


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Travalo, a refillable, aircraft-safe atomizer perfume spray bottle, is introducing its second Travel Retail Exclusive product. Following the launch of the Travalo Simply Red introduced to TR exclusively for Virgin Atlantic earlier last year, the brand has created the Travalo “Take2,” a new Travalo duo gift set just for duty free and travel retail environments.

The “Take2” consists of two Travalos that fit inside a leather case, enabling travelers to carry two different fragrances. The Travalo Travel Retail Exclusive set is available in four versions: sleek Black Leather Case with Black and Silver Travalos, elegant Brown Leather Case with Black and Gold Travalos and a colorful Pink Case with Pink and Silver Travalos or Pink and Gold Travalos.

The sets are designed for either gifting or self-purchase and the idea was created by Market Connections and Travalo to tap into the gift set market. Recently the

brand was listed with World Duty Free with its own developed Counter Display Units and Travalo believes that this next Travel Retail Exclusive is another string to its already significant travel retail merchandise offering.

Travalo parent company Aydya Managing Director Yusuf Okhai says: “This year marks our second year in Travel Retail and we have embraced the industry whole heartedly. We want to keep our offer fresh and strong and understand Travel Retail Exclusives are a great way to do this, for both consumer and retailer.”

The Travalo refillable atomizer perfume spray bottle uses a patented easy fill system that involves a simple repeat pump action. Winner at Cosmopolitan Beauty Awards 2010, the pocket sized 8cm Travalo perfume spray bottle refills in seconds directly from a big fragrance spray bottle without the use of a funnel. Made of aircraft grade aluminum and no glass

makes it safe and tough enough to carry fragrance wherever you go. The Travalo carries 50 sprays and has an integrated fill level indicator window to show how much fragrance is left in the bottle.

Travalo is represented in the Americas by Kronos America, LLC and will be on exhibit at the Duty Free Show of the Americas.

Travalo creates Take2 duo gift set exclusive to travel retail

The Luxury Goods link for

Onboard presentations

Special Event coordinators for Luxury Goods

on Selective Cruise Liners

Distributor / Agent for Luxury Goods

for Duty Free and Travel Retail.

KATTOURA GROUP INC.

Branding the World

t) 305.867.0808 c) 786.683.6664 f) 305.867.0809 e) raymond@kat touragroup.com

KATTOURA GROUP INC.

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Nestlé International Travel Retail (NITR) will focus on its Perfect Store initiative and latest new product developments in Orlando. The Americas continues to be an important and growing region for NITR, and the Perfect Store initiative will provide the right framework for retailers to deliver future confectionery growth in the region.

The Perfect Store core principles are: make confectionery easy to understand and shop, encourage shoppers to interact with the category, make confectionery accessible to all shoppers and build confectionery displays based on how shoppers shop.

As part of the Perfect store initiative NITR will share the latest developments and shopper insight on its Cash Till Point optimization program, and will showcase its virtual reality Perfect Store through the eyes of the shopper. It will illustrate how the individual category drivers can be activated in store to provide the right framework to increase levels of penetration into the store, shopper conversion and basket size.

The associated category drivers are: ease of shop, relevant gifting, on the go snacking, and entice, engage and convert.

NITR will also highlight its 2011 array of new products based on its three global brands: Nestle Swiss, Smarties and Kit Kat, along with the regional brands of After Eight, Quality Street and Baci.

Says Roland Stieger, NITR head of sales: “In 2010, NITR has recorded high double digit year on year sales growth in the Americas, notably within South America, with the key drivers centered on the strong Brazilian economy, high passenger growth, effective shopper and category strategy for the Americas, focus investment, working closer with retailers to meet the growing pains of a very dynamic region. NITR will be building on the success of last year and engaging key customers in the region in the activation of the Perfect Store category drivers that in turn will provide the right framework to drive category growth in 2011.”

Visit NITR at Booth #1123.

Nestlé takes its Perfect Store initiative and latest new products to the Americas

Godiva returns to the Duty Free Show of the Americas this year after another highly successful year of travel retail sales throughout the Americas.

“Sales have been driven by the success of Gems and Tablets in both North and South America Markets,” says Diane Buchanan, International Travel Retail Region Manager Americas & Caribbean, Godiva. “We will continue to expand our business in the region, with a particularly strong focus on the South America emerging markets.”

In 2011, Godiva will introduce the reworked Gold Collection, first launched at TFWA World Exhibition last October, from mid-February. Godiva’s iconic collection is now available in new beribboned boxes and offers a wider selection of chocolates for greater giftability.

In addition, this year will see the

introduction of new flavors for both Gems and Tablets, along with a limited edition Dessert Truffle.

“Godiva is committed to investment in travel retail and in 2011 will continue to partner with our customers to identify the best way to stimulate sales,” says Buchanan.

Buchanan says the ongoing strategy for Godiva and its retailers is to bring a unique shopping experience to the traveler through personalization, Shop in Shop fixtures, innovative new products, promotional outposts, sampling activities, PWP, GWP’s, plus staff training and incentive programs.

“We see this as key to our continued growth within the region,” Buchanan concludes.

Godiva will be exhibiting in Orlando at Booth #829.

Godiva drives sales in Americaswith a full package for retailers

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Visitors to this year’s IAADFS Orlando trade show will discover a line-up of new products from both Kraft Foods and Cadbury at Kraft Foods World Travel Retail’s (KFWTR) expanded booth. Highlighting the strengths of both companies, the array of novelties has been specially selected by KFWTR for the Americas region.

“At this year’s IAADFS Orlando show, we are delighted to present a powerful combined portfolio of products in all the key confectionery segments,” comments KFWTR Managing Director Andreas Fehr. “The Americas region plays a key role in our travel retail regionalization strategy and our strong

and dedicated team continues to focus on growth opportunities in this region,” he adds.

Kraft will put special focus on Trident chewing gum, and the newly-launched travel retail exclusive, Trident multi-pack. To support the Trident multi-pack launch, KFWTR has developed new merchandising solutions for retailers to place at the sales counter. The company will also be sharing valuable insights from recent market research into the “Hot Zone” area, including strategy and merchandising solutions for maximizing these impulse sales opportunities.

Other items to be highlighted by KFWTR are: the Toblerone Gold minis pouch, the Milka Imagine praline, and the Cadbury Luxury Selection pralines.

The KFWTR Americas team looks forward to welcoming trade partners to Booth 315 in Orlando.

Perfetti van Melle will be unveiling new products for each of its core brands at this year’s IAADFS Duty Free Show of the Americas. The company intends to focus on innovation, find out what is important to customers and translate that into ways to boost mutual growth.

In the Mentos line, they will introduce: the Mentos Mini and Kidz bags. For Chupa Chups, they will introduce the Chupa Chup Flower Bouquet and the Surprise Travel Pack.

To learn more about these new additions, Team Perfetti

van Melle invite you to visit them at Booth 1237 at the IAADFS Show, where they will be happy to answer questions.

Mentos go Mini and Chupa Chups go floral

Jelly Belly has developed an exclusive travel retail line that offers a variety of gifts for duty free channels.

The new line features 125g 10-flavor gift boxes with customized destination sleeves, a 400g Assorted Flavors Bag, a 270g Bean Tin and a Jelly Belly Coloring Set.

The 400g Assorted Flavors Bag is a grab and go pouch that features easy-to-carry handle and fun individual pyramid bags of gourmet Jelly Belly Beans.

Specially packaged Jelly Belly Crayons and a Jelly Belly coloring book complete the Jelly Belly Coloring Set. The 28g Jelly Belly Crayons have tips that actually draw in 5 different colors that match the colors of the beans inside the crayon.

Jelly Belly beans are gluten-free, dairy-free, gelatine-free, 4 calories a

bean and certified OU Kosher.

For additional information, visit Alfa Brands Inc. at the IAADFS Show at Booth #530.

Jelly Belly develops exclusive Travel Retail line with Alfa Brands

gluten-free, dairy-free, gelatine-free, 4 calories a

bean and certified OU

information, visit Alfa Brands Inc. at the IAADFS Show at Booth #530.

Highlighting the strengths of both companies, the array of novelties has been specially selected by KFWTR for the Americas region.

Alfa Brands is launching Pretzel Pete Pearls to North America travel retail at the IAADFS show.

The new 4.5oz bag combines authentic spices and recipes from the Orient with a unique mini-ball shaped pretzel and comes in three exotic flavors: Wasabi, Coconut Curry and Szechuan.

van Melle invite you

Kraft WTR brings combined Kraft and Cadbury range to Orlando

Alfa Brands to launch Pretzel Pete Pearls

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Chase International experienced record sales and exceptional growth in its confection division in 2010, reports company president Chase Donaldson.

“The strong economic turnaround in the U.S. travel retail area with our major customers, along with the introduction of many new items from Hershey’s Chocolates, Hawaiian Host Chocolate Covered Macadamia Nuts and Walkers Shortbread helped fuel us to a record sales level,” says Donaldson.

For Hershey’s the new exclusive travel retail line of pouches and gift boxes, and the Hershey Chocolate World Tin Gift items from Galerie Innovative Confectionary Gifts, provided much of the resurgence in the Hershey portfolio, says Donaldson.

“The successful introduction of a number of Hershey’s core Club Bag and Giant Bar items, specifically in the Reese’s and Kit Kat lines, helped expand the assortment and sales. We also successfully introduced three new travel retail exclusive pouch items – Hershey’s Assorted, Reese’s Cups and Cookies n Crème Kisses during 2010,” he says.

“For 2011, our focus on Hershey’s will be to expand distribution of the travel retail items through expanded in-store display, visual and promotional activity. Hershey has created a number of beautiful dedicated floor displays that we plan to distribute to many of our retail partners and customers. We also look forward to introducing a

“Multi-packs continue to be very popular and Island Trio contains a total of 36 pieces of Hawaiian Host’s three best-selling lines,” says Cindy Kuranushi, Hawaiian Host sales. “The pack is convenient, easy to carry and just ideal for travel retail – either as a gift or to meet the snacking trend. Travel retail price will be around $25. We’re very keen to really push the Multipacks to operators in 2011. We believe there’s a great opportunity for the range – it’s affordable, great as a gift or equally for snacking and sharing,” continues Kuranushi.

Chase reports that Walkers Shortbread also experienced double digit growth in 2010 due to the expanded range and successful reception of mini pouches and the new cookie line of boxes. In 2011 Chase will be expanding on these two lines with the launch of the new Walkers Shortbread 4.4 oz. Mini Shortbread Fingers bag, and the Walkers Shortbread 5.3 oz. Quadruple Chunck Cookies among other irresistible flavors.

At the IAADFS Show Chase will again display the Storck Exclusive Travel Retail brands from Germany, featuring Werther’s Original Cream Candies, Toffiffe Caramels and Merci Finest Selection of Chocolates.

This line and items will be introduced into the U.S. travel retail market in 2nd quarter 2011.

number of new Hershey Chocolate World Tin Gift items, along with expanding some of the more popular Hershey everyday items like Bliss and the new and hugely successful Hershey’s Drops items.”

Following the successful launch last year of Hawaiian Host’s new licensed character wholes and halves boxes from Sanrio’s Hello Kitty, and Disney’s Lilo and Stitch & Mickey and Minnie Multi-packs, in 2011 Hawaiian Host will be expanding the multi-pack line with the IAADFS launch of Hawaiian Host’s new Island Trio Multi-pack.

The Island Trio is a 15.3oz clear pack with zipper and tote handle containing 18 two-piece bars; six bars each of MacNut Crunch, Maui Caramacs, and “Scenic” chocolate covered macadamia.

Record sales for Chase International’sconfectionery division in 2010

“For 2011, our focus on Hershey’s will be to expand distribution of the travel retail items through expanded in-store display, visual and promotional activity. Hershey has created a number of beautiful dedicated floor displays that we plan to distribute to many of our retail partners and customers.

Retail brands from Germany, featuring Werther’s Original Cream Candies, Toffiffe Caramels and Merci Finest Selection of Chocolates.

This line and items will be introduced into the U.S. travel retail market in 2nd quarter 2011.


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A world of iconic brands –ONE confectionery PARTNER

Join as at booth 315

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Miami-based Viva Sales and Services, authorized distributor for Ed Hardy Purses, Jewelry, Watches, Scarves, and Swimwear, launches mini Ed Hardy sections onboard 5 NCL cruise ships, operated by Dufry. The fashion-forward brand features an exciting display area, together with a celebrity-filled DVD showcasing the multitude of celebrities that partronize the brand. “These sections have been successful in Duty Free because we consolidated a variety of Ed Hardy merchandise into one Ready-to-buy full service fashion section,” says Viva Sales owner, Ellen White.

These sections range in cost from $2500-$4000 and have a retail value of $6000-$10,000.

Ed Hardy Section grows onboard NCL Cruise Line

Ed Hardy on the NCL Dawn in February 2011

Zippo, maker of the world famous windproof lighter, is introducing the expansion of the brand with several new product lines on display at the 2011 IAADFS Duty Free Show of the Americas Encompassing the first Zippo branded fragrance, men’s and women’s clothing, watches, writing instruments and more, this diverse expansion is integral to the company’s mission of evolving from a pocket lighter manufacturer to a lifestyle brand, reports the company.

“Zippo is a global brand and we’re

always looking for ways to expand into new markets while maintaining the company’s core values,” said David Warfel, director, global marketing, Zippo Manufacturing. “We’re excited to be part of the Duty Free Show of the Americas because it gives us the opportunity to provide this industry with a look at the bigger picture and what we envision for Zippo. For the first time, we’re showing these brand new products lines together, and doing so sends a clear message that Zippo is no longer just a pocket lighter

company. Every single product was designed to emulate the qualities of the brand - quality, durability, ruggedness - and will be instrumental in helping elevate brand awareness even further and growing the Zippo business worldwide.”

Partner DevelopmentTo support its product expansion

efforts and grow the Zippo footprint in global travel retail and duty free, Zippo has formed several new partnerships with leaders in their respective industries. In conjunction with its presence at the Duty Free Show of the Americas, Zippo announced that it has partnered with CITRA Inc. Led by Bart Collins; CITRA will serve as the Zippo representative for the global travel retail market. (Ed. Note: The Goris Group continues to represent the Zippo brand in the Caribbean and Latin America local markets).

Zippo has also partnered with Joint Base USA which has secured the exclusive global duty free distribution rights for Zippo Apparel. The Zippo Apparel collection will consist of tees, denim, twills, fleece, knits, wovens, hats, belts, and will feature original artwork and photography dating back to 1932 when the iconic Zippo lighter was invented. Joint Base USA is led by industry veterans Ingrid Martin, Todd Profit and Mary Bang.

Zippo targets growth in duty free with Lifestyle product expansion

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Zippo’s venture into fragrance is a result of the company’s recent partnership with Mavive SpA, an Italian perfumery. Recognized as an expert in fragrance and design, Mavive works with some of the finest brands in the industry. Zippo Fragrance is highlighted by a men’s cologne which boasts a packaging in the shape of the iconic Zippo windproof pocket lighter. Not only does the packaging convey the masculine and rugged values of the brand, it also incorporates a flip top which recreates the classic Zippo “click” each time it’s opened.

The entire lifestyle collection will be on display at the Zippo booth #2309.

Zippo Flagship StoresFurther strengthening the company’s marketing efforts

in travel retail and duty free, Zippo has announced a new concept store design. Available as a template for its domestic and international retail partners, the concept store incorporates visual design elements that capture the true spirit of the brand and communicate a sense of ruggedness and durability, which have been Zippo hallmarks since its founding in 1932. With a prototype store built at the company’s Bradford headquarters, Zippo’s goal is to create a consistent look and feel and deliver the same customer experience in current and new retail destinations worldwide.

The concept store is a platform which gives consumers the ability to experience not only Zippo pocket lighters, but the full, comprehensive Zippo product line. In addition, the concept store’s modular design elements can be adapted to fit any space identified by Zippo retail partners, and additional setups, including a Zippo branded kiosk and shop-in-a-shop, have also been developed following the theme of the larger concept store.

About ZippoZippo markets in more than 160 countries and is one of the

most recognized brands in the world. Based in Bradford, PA, Zippo has produced over 475 million windproof lighters, each backed by an unparalleled lifetime guarantee. Zippo’s diverse product line includes lighter accessories; butane candle lighters; watches, fragrance, and lifestyle accessories for men; and a robust line of heat and flame products for outdoor enthusiasts. Zippo also owns the Ronson brand of lighters and fuel and W.R. Case and Sons Cutlery Company, both based in Bradford, PA, and Zippo Fashion Italia, headquartered in Vicenza, Italy. Zippo will celebrate its 80th anniversary in 2012. For more information, visit Zippo.com.

Our Lifestyle Collection is red, hot, and new.

Men’s apparel

Women’s apparel

Fragrance

Leathers

Watches

Pens

Men’s gifts

Lighters

For information about Zippo travel product lines, contact

CITRA Inc. • 631-375-4861 • [email protected]

PJ13776-IAADFS-2.indd 1 2/17/11 10:09:05 AM

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Color Reflections, the South Florida-based producer of high-end digital imaging and grand format graphics, will be exhibiting at the Duty Free Show of the Americas for the first time this year.

The Hollywood, Florida office, under the direction of industry veterans owner Herb Jacobson and Production Manager Maggie Rose, with over 40 years combined experience, belongs to the largest network of professional photo and digital imaging operations in the U.S., and counts a large number of the Miami-area’s leading travel retail and luxury goods companies among its clients.

The independently owned operation provides a broad portfolio of services including Durst Lambda photo prints, duratrans and murals, grand format banners and signs, direct-to-media UV printing, trade show displays and graphics, billboards, vehicle wraps, custom POP and retail displays, banner stands and much more.

Offering extreme flexibility, Color Reflections can create a single unit or thousands, an 8” x 10” print or 50’ x 200’ or larger banner, delivering locally or drop shipping to 200 locations.

“Everything we make is custom; it’s not off the shelf,” explains Color Reflections salesman Robert Prieto. “We transform a customer’s idea into that specific display. It is custom to that customer.”

“We are experts in designing and producing short-term displays and merchandisers that have been used in duty free shops throughout the Caribbean and at company meetings,” says Herb Jacobson, pointing to a recent project produced for a Cartier meeting that included the backdrop, columns, discs on top of the columns, (see photo) and a stunning POS unit for Thierry Mugler perfume that also included the floor graphics.

“Custom is really what we are all about. Design and transformation. If you can think it, we can print it,” says Prieto.

Travel retail accounts for a large portion of the business in the South Florida office.

“We have a strong following among such brands because we produce perfection. We demand quality and it has resulted in high trust from our prestige clients,” he adds.

Prieto enumerates a list of reasons that allows Color Reflections to consistently produce the highest quality:

“Not only do we have the most state of the art equipment -- anyone can say that – but we have the experienced, dedicated staff to operate them. Our employees have been with us for five, ten, 15 years. They have tenure in this organization, and with six national locations, they can aspire to move up through the ranks without having to move from job to job, which translates into consistency for our clients,” he says, adding that the company also offers 401K and full benefits.

Color Reflections also puts new employees through a comprehensive training program, as well as ongoing cross-training, additional factors that lead to its high retention rate and ensures quality production.

Quality control and timely deliveries are also key: “We have quality control checks throughout the process. Every step must be signed off. We cannot afford to have a project be wrong. Our accuracy rate is over the top in terms of production,” says Prieto. “We also have redundancy, with two and three of everything. If a disaster were ever to strike, we are able to send files to another location for production and have the finished work shipped.

In fact, Color Reflections uses an 11-step accuracy assurance QualMAX™ process, as well as certifications with industry pioneers like Fuji, HP and 3M, to deliver consistent quality. And its Color Reflections University™ is a one-of-a-kind employee training program that keeps the staff on the cutting edge of industry knowledge as well as provide a forum to create new processes and services.

Color Reflections is also going green, says Prieto, offering clients environmentally friendly materials and an HP L65500 latex printer that prints green.

Color Reflections will be exhibiting at Booth #2400 at the Duty Free Show of the Americas in Orlando, to meet with new and potential customers. Prieto says that the company has some special activities planned for visitors.

Color Reflections: high-end digital imaging customized for travel retail

All the images, backdrops, columns, discs, and floor graphics in the Thierry Mugler (above) and Cartier (right) displays were produced by Color Reflections

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Patti and I met when I joined the Parbel team in 1986 where we both were area managers. Traveling together, I got to know Patti well, and was always impressed by her dedication to work and her professionalism, but equally important she was (and still is) a lot of fun to be with. And so, even though we could not possibly be more different, we became good friends. As we both changed jobs over the years, we always stayed in touch and made time to see each other.

About 7 years ago, after having lost my job at Puig, I was going through a difficult time. Patti called me and hearing over the phone that I was feeling really down, dropped what she was doing and came to spend some time with me. This to me summarizes one of the greatest qualities of Patti; she is a true friend with a heart of gold, on whom her friends can count in bad as in good times. I am privileged to be one of her friends. Good luck in this new chapter of your life Patti and let’s keep making time for each other in the next 25 years as in the last 25!Gilles Prodhomme

Patti, It has been a pleasure working with you throughout the last 18 years. You have been a leader in the Duty Free industry and admired by many for your enthusiasm, free spirited attitude and hard work. Therefore I raise my glass, to wish you much happiness in your new venture called “Retirement.” You will certainly be missed.

Cheers!Frances Arteaga

Patti Grant is an Institution in the world of Travel Retailing... She is “General Grant”! She always tells it the way it is and will not beat around the bush. You have to love that about her. Patti’s contributions to the different companies she has served are too many to count, but her biggest legacy is undoubtedly the many people she has touched with her amazing heart. Patti “grunts and moans” first, but then she cares and loves like few people I have ever met... She will surely be missed by many and the whole industry is poorer with her retirement. All her MANY friends wish her lots of fun and happiness in this next chapter of her life and hope she will not be a stranger... I for one am not worried and look forward to sharing more great moments with her soon!

Hugs and kisses!Cedric Prouve

It is hard to believe that is has been almost thirty years since the first day we met on my first day at Parbel back on May 2, 1982. You were already a year into the business. As I worked for you as a consultant, I have always felt that you trusted me and gave me the encouragement to do my best. I don’t know if you realize this, but you are a legend throughout the Duty Free and Beauty Industry. You are respected and admired for your work ethics and everybody loves you, I know that!

To my sister, Zoila, and I, you are family. Even though it is seldom that we see each other, I want you to know that I love and care for you dearly…YOU ROCK, PATTI! I know that you have been looking forward to this for a while, so I wish you the best of luck and all the joy in the world on your new Journey, see you soon. Love Blanca Prouve.

As Givenchy’s Patti Grant Retires,

Patti is such a rich and special and unique person! Before I decided to move to USA I had heard a lot about the one and only Patti. Her reputation as one of the most loyal persons in the industry, her not always “politically correct” way of sharing her very accurate positions, her dedication to this huge community of Duty Free had crossed the big Ocean and I could not wait to finally meet this legend. Our years under the same big “roof” in Miami have given me a chance not only to better assess her professionalism but also to discover a person with a beautiful heart, always ready to defend and care for the people in need.

Patti invented and naturally practiced, since the beginning of her career, the concept of “partnership”. She did not need anyone to teach her that respect and consideration of your supplier was the base for a long and fruitful business relationship. The same applies to her personal life. Be sure that your friends will always be there for you and will be part of your new life. Crossing the USA is a piece of cake for those who are used to crossing oceans. So Patti, get ready: the petite frenchie, is already planning her trip to Palm Springs!!

Hugs and love Virginie Cordero


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Patti is one of the best people I have had the chance to meet in my life, business wise and frienship wise ... She has a big heart, she is always ready to help people, she is always the first one to give the chance to people no matter what is their diploma and this is a very rare quality.

If I have to resume Patti in one small sentence I will say that : SHE IS A LADY.

I will miss her a lotFrançois Janin, LVMH Fragrance Brands

When I was asked by L'Oreal to start a company in Miami to handle the Duty Free of the Americas, I decided to hire a team of professionals with a strong personality. Patti was one of them and if I cannot remember what she was doing before Parbel, I can say without a doubt in my mind that Parbel would not be the company it is today without Patti's enormous contribution.

She was a pillar of the company for many years and left a great souvenir when she left. All of us at L'Oreal and I in particular would like to thank Patti for her brilliant career and we wish her a well deserved happy retirement.Best, Eric Lauzat

I first met Patti Grant in the early 80’s when I worked for a small cruise company called Eastern Cruise Lines. I was very new to the fragrance industry, and thru Patti I learned some of the industry traits. She was with Parbel at that time and they were major suppliers to my fragrance/cosmetic business. As my career changed so did Patti’s and we continued to work together. She became a personal friend and I consider her one of the most professional associates and the very best of friends. She has a big heart and a loving way and I will never have Patti out of my life. I consider her one of the dearest people I have ever had the privilege to know.

Good Luck Patti and many happy years ahead.Jeanne Osborne

Some of my fondest memories of Patti revolve around the fact that her Cannes outfits always matched the TR exclusive fragrance. I fondly recall the blue and green combination as well as the pink and orange. I hope Patti still has those clothes as they will be great in Palm Springs!! Patti will be missed. She has great knowledge of this industry and a fabulous sense of humor. Linda AllarioGlobal VP, DFS Beauty

I've know and worked with Patti directly or indirectly since 1982 and the one thing I can say is that now, like it was back in 82, Patti is a no BS tell you like it is straight shooter. It is so refreshing to discuss business with her, nothing has changed over all these years. It's been a privilege working with you Patti, and we will all miss your insight and candour.Michael Beler

Never thought that when I met Patti 30 years ago (Nov./81), she would have become such important part of my life. Grant, you are part of my family, we all love you, respect you and admire you. In spite of our “cultural differences” we grew to be very close friends. You have been there during the good and bad times.

On the funny side, after all these years you never learned how to pronounce my name correctly but I always responded.

You have the qualities that I wish every human being had been graced with. I watched with admiration how you always stood up for what was the right thing to do instead of being politically correct, or doing what was expected of you. In this world of trickery you are a breath of fresh air. Your work ethics are second to none, and you ALWAYS, ALWAYS stayed true to yourself.

You will leave a huge empty space in this industry and in the people who know you personally. It has been a privilege to know you. Your dreams have finally come true, so enjoy yourself ….you DESERVE IT!!!!

You will be dearly missed just because you are an amazing human being!!!Zoila AndonieFriends and Colleagues wish her well

+35 years of sharing life!As an adopted member of the Albert family, you will leave a big empty space, that no one else can fill.Love you Mom and Benny

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From conceptual design to custom manufacturing and nationwide distribution, design agency Reisigl Associates brings its designs to reality. The Corona Beach Bar (left) is located in the Ft. Lauderdale/ Hollywood International Airport. Set in the midst of the airport hustle and bustle, this mini oasis has been a big hit. Sales have been brisk (up 200%) as travelers seek refreshment and relaxation under the inviting canopy as they wait for the next flight out. Reisigl has produced 40+ Corona bars to date, with more to come.

Reisigl Associates teamed up with Sobieski Vodka to bring a Value Added Package to Duty Free. Sales of this double liter package, with two embossed shot glasses, has been quite successful, reports the company.

Reisigl Associates: Bringing award-winning Design and Brand Development to Travel Retail

Jim Reisigl, founder of Reisigl Associates Inc, is an experienced advertising designer and creative director who has been producing a wide variety of projects from logo design to trade show and tour route displays for nearly 40 years.

His full service agencies provided not only designs, but also the finished product

for companies such as IBM, Western Union and General Electric. But after moving to Florida in 1992, he opened a small agency and Todhunter International, a liquor and food company located in West Palm Beach –and owner of Cruzan Rum – became his largest client.

“We build brands. We design, we manufacture, we coordinate the building of a brand. From a label to a fully constructed 3-D venue used in store, on premise, in trade shows, in bars, stadiums, airports, cruise ports or on-ship, we are helping to build a brand,” Jim Reisigl tells Insiderduring a meeting in an office/studio crammed with graphics, visuals and POS displays, many quite familiar and memorable.

Back in 1992, Reisigl began working closely with Todhunter on building their Cruzan Rum brand. The agency, using creativity and innovative designs, helped drive the tremendous growth of the brand over a ten year period, making Cruzan the fastest growing rum in the world.

Reisigl has since been joined by his son, James, who has worked on all aspects of branding, marketing and strategic planning for clients, and oversees and manages the team from creative to final completed project.

Although the company works with a range of products and industries, they seem

to have a particularly keen affinity for the spirits industry – especially in travel retail ventures – and number Imperial Brands, Bacardi Travel Retail, Beam Global and Maxxium among its clients.

“Our projects range from creating a Cruzan Hut for SMT’s cruise port store in San Juan, to a drink menu for Bacardi used on Norwegian Cruise Lines, to a multi-brand printed sales tool for Maxxium, to the special Travel Retail exclusive 2-pack with glasses for Sobieski,” says James Reisigl.

Reisigl is doing a lot of work withImperial Brands for their 4Orange Vodka too, making all the “orange crate” stands they are using in the airports, and which debuted at the IAADFS Show picnic last year. “We made all the bar elements, including this metal muddler. Matching all those oranges to get just the exact shade was quite a challenge,” said James.

A Reisigl specialty is the conception and design of branded venues, which can range from the iconic Corona Beach Bars — which range from an 8-foot portable hut to a 17-foot semi-permanent in airport environments to its latest project, designing the new Cruzan Rum Distillery Hospitality Pavilion on St. Croix.

Venue Concept & DesignBranded venues can deliver brand


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Reisigl Associates designed, manufactured and coordinated the build of the Cruzan Rum Distillery Hospitality Pavilion on St. Croix, rebranding a pre-existing location into an inviting sense of place that in a few short months has become a full tourist experience. Reisigl was involved from original concepts to finished project, including developing logistics for supplies to reach the distillery. Construction on the project was begun in September, 2010 and completed this February, and included such final details as hanging hammocks and setting up a ring toss on the grounds.

James Reisigl in front of the customized trade show stand created for 4Orange Vodka for display at the 2011 Night Club and Bar Show held in Las Vegas in March. The stand was a huge success, reports Reisigl.

awareness in a tangible but also subliminal manner, explains Jim Reisigl. “We have created everything from a 4’ x 6’ portable bar to an 8,000 sq-foot, two-story bar/restaurant. The “Cruzan Islands” airport bar and restaurant we built in Ft. Lauderdale-Hollywood International Airport has 7 million passengers passing through each year.

“By creating a brand atmosphere and experience, it is absorbed into the memory in a way no ad can possibly rival, delivering brand awareness and sales,” says James Reisigl, pointing to sketches and models of examples on display throughout the studio. Concepts ranged from a

freestanding amphitheater boathouse bar, a themed resort in Reno, Nevada, an Arena branded bar, to a branded rum bar on a beach in Florida.

Reisigl Associates offers a full range of agency capabilities – including producing packaging, POP & POS materials and other collateral, logo and icon development, and advertising. Corporate sponsorship support is another specialty, as the life-size graphic of Kenny Chesney used in one of his Cruzan Tours can attest.

Every project is custom, and every project goes from concept to execution.

For more information on Reisigl Associates, go to www.reisigl.com.

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“““““Around the globe they ran on the beaches, they ran on the land, they ran on athletic tracks, they

ran on treadmills. They ran past famous landmarks. They ran in silly costumes. They completed their ‘runs’ on surfboards. They ran with heart and passion. They ran, and ran, and ran.

Martin Moodie, PublisherThe Moodie Report

On the weekend of March 4-7 a most remarkable event took place in the travel retail industry across the globe, when the inaugural Moodie Multi-National Marathon took off.

The event, a unique initiative designed to raise money and awareness for the charity Hand in Hand for Haiti, was the brain child The Moodie Report’s Martin Moodie, as he continues to recover from a grueling year of cancer treatments.

The marathon was run in teams of six, with each team member running/walking one-sixth of a marathon (7.03km), anywhere in the world, over the course of the four days.

Many of these teams embodied the “Multi-National” aspect of the Marathon, with runners competing their legs in different countries. Some companies

fielded dozens of teams. Some companies created special logos. Many companies designed special tee-shirts.

The event ended up surpassing the organizers’ wildest estimations. The marathon raised in excess of US$151,000 in direct donations, wrote Martin Moodie on his Blog on March 8, adding thatadditional funds were channeled directly to Hand in Hand for Haiti, which is building a world-class school in Saint Marc, Haiti, as part of the response to the tragic January 2010 earthquake.

Travel Markets Insider wishes to especially recognize the “local” team of Glorious WiT for HAITI, four very intrepid ladies who spread their effort over three continents and raised nearly $3200. From Miami, Virginie Cordero of Sunny Touch Corp. and Zoila Andonie, of Duty Free World (transplanted from France and

Brazil respectively); from Uruguay, Liliana Sobredo, Perfumes y Deseño, and from Paris, Orlane’s Christine Mazy.

As organizer Virginie Cordero says in her own words: “Glorious WiT for Haiti walked/ran the 40kms of the Marathon in a total of 7 hours. Not great, but not too bad neither…. and the main thing is that we all thoroughly enjoyed doing it!

“Christine Mazy covered her 7.03kms Nordic walking in sunny but freezing Bois de Boulogne with a group of friends. Zoila Andonie and I walked together the 7.03kms along the beach of South Beach, enjoying every minute of it!! And last but not least, from as far away as Punta del Este, Liliana Sobredo, who all by herself accomplished an excellent 1 hour run/walk!”

From those of us who cheered you from the sidelines, a very big congratulations.

GloriousWiT for HAITI

team runs in the inaugural

Moodie Multi-National Marathon

Miami - Paris - Punta del Este

Orlane’s Christine Mazy warms up in Paris Liliano Sobredo, of PYD, in Punta del Este, Uruguay

Virginie Cordero (l) and Zoila Andonie (r) at 1.5 km and 3.5 km into their share of the marathon, as they walk/run along the beach in Miami’s South Beach in Florida.


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Foster Grant, the market leader in over the counter reading glasses and non-prescription popular-priced sunglasses, will be introducing its portfolio to the duty free channel for the first time at the 2011 Duty Free Show of the Americas.

Foster Grant will be debuting at the show with Go Snacks, who is representing the brand in global duty free.

“Foster Grant is sold in over 65,000 retail locations worldwide,” says Sal Siano, Marketing Director for FGX International, the Rhode Island-based company that produces and markets Foster Grant. FGXI also has a strong international presence including the UK, Canada and Mexico, says Siano. “We maintain offices in each of these countries and have over 180 employees working for FGXI outside the United States. We also have an office in the People’s Republic of China to support our sourcing efforts.”

In addition to its popular sunglasses, Siano says Foster Grant will be showing several other innovative new products in Orlando, including the Light-specs by

Foster Grant. “These are reading glasses that have two LED lights in the temples that focuses light directly at your book, and not throughout the whole room. It eliminates the need to turn on a light,” said Siano. The Light-specs retail at around $24.95.

Siano also expects a strong response to Foster Grant’s micro-vision, reading glasses that fold into a compact storage case that is about the size of a cigarette lighter. Already listed with Hudson and Paradies at about $24.95, the company is now looking to expand into the duty free market.

Foster Grant has been generating excellent attention for the brand through its sunglasses advertising campaign with Raquel Welch, which has been running on national network cable TV in the U.S. and is still airing now.

A new TV campaign goes on-air in May to support the launch of the Light-specs, says Siano. In April, FGX will launch a new Foster Grant sunglasses TV campaign that will be targeting a younger demographic than that targeted by the

Raquel Welch ads. “This campaign will run from April through July 4, which is the peak sunglasses selling period,” says Siano.

“Basically, Foster Grant is the only brand in the popular price range of sunglasses that does any kind of consumer advertising. And we are certainly the only brand on television,” explains Siano, who says the company will be spending close to $10 million in measured media for its four Foster Grant brands, the reading glasses, sunglasses, the light-specs and the micro-vision.

FGX also has a higher end brand called Corinne McCormack, which is sold in department stores such as Bloomingdales, Lord & Taylor and Macy’s and retail in the $40-$80 range. “This is another potential brand for duty free,” says Siano.

Go Snacks (Booth 1336) is the Agent/broker for the brick and mortar stores for Foster Grant, and the distributor for the brand with the airlines, said Go Snacks President Mark Mariani. The Foster Grant portfolio will also be on display at the Advanced Wireless Technology stand (1323).

Hi-profile Foster Grant debuts innovative eyewear

www.fgxi.com

Visit us at IAADFS at booths 1323 and 1336

GRADY SIZEMOREALL-STAR • GOLD GLOVE WINNER • SILVER SLUGGER AWARD WINNER

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Vogue Eyewear, produced by Luxottica, has teamed up with super-model Kate Moss as the new face of its spring/summer 2011 advertising campaign. The campaign, shot by top fashion photographer Mario Testino, debuted on the website vogue-eyewear.com in late January.

Kate Moss debuts asnew face of Vogue eyewear

Lenny Di Cristofano, president of duty free company worldclassbrands, has made a specialty of finding unique, appealing brands that cater to that certain “sweet spot” in the market.

“Finding this ‘sweet spot’ is what I think is one of our biggest strengths,” Di Cristofano tells Insider.

“Although they are priced right—between $75 - $200 – these products offer a higher perception of value. Quality and design are inherent in the products.”

Di Cristofano observes what he thinks is “consumer exhaustion” today: “Shoppers want to buy right now. And every brand that we supply is affordable luxury. This is the new normal. We have gone out of our way to find these products: Crislu, with its look of real diamonds; JOIA De Majorca, organic but man-made pearls; Hot Diamonds, sterling silver jewelry with diamonds; and other high quality brands like these.

“By providing these high value products, which are positioned just where the consumer mind-set is today, we give the consumer a reason to buy, and we are giving the retailer a reason to work with us,” says Di Cristofano.

He points to worldclassbrands’

Chamelia beads as a particularly apt example of this strategy:

“With our Chamelia beads, where you make your own bracelets, we developed an innovative self-serve unit that is particularly appropriate for an airport, where you don’t have the sales staff or time to spend helping a customer build a bracelet from an incase setting. We have packaged and boxed sets by bracelet, theme and color, which enables a shopper to put together a beaded bracelet in much less time. It is one way we are differentiating ourselves from the competition.”

The Chamelia beads also allow the consumer to purchase quite an impressive piece of jewelry in a wide variety of price points, depending upon which elements are chosen to build the item, says Di Cristofano.

Business has picked up significantly in the Caribbean for worldclassbrands over the past year, notes Di Cristofano, although he says many retailers are still cautious. “Those retailers who started ordering more aggressively benefited the most,” he says.

worldclassbrands will be displaying its entire product line in Orlando at Booth #730.

“Sweet Spot,” high perceived value, drive sales for worldclassbrands

Tom Ford and Marcolin extend partnership until 2022;Marcolin to debut new Swarovski sunglasses line in Orlando

Tom Ford International and the global eyewear company Marcolin Group announced on March 3 that they have renewed their license agreement for the design, production and worldwide distribution of optical frames and sunglasses under the Tom Ford brand until December 2022.

In the official statement announcing the deal, the companies said that the Tom Ford Eyewear collection has become one of the most successful stories in eyewear and has helped to solidify Tom Ford as one of the preeminent luxury brands in the world since it was launched in October 2005.

The original contract, signed in 2005, was for a period of ten years.

Maurizio Marcolin, style and licensing director for the Marcolin Group, said the extension of the agreement is geared towards strengthening the presence of the Tom Ford brand in all markets and is aimed at further increasing the international development of the brand.

“I am delighted that we will be partners with Tom for many years to come and look forward to capturing all of the additional opportunities for growth. Our

strong relationship has enabled us to bring to the market an iconic, luxurious, premium brand that continues to reach immediate success and global awareness,” said Maurizio Marcolin.

“Marcolin is an exceptional manufacturer and partner. The extension is a natural result of the excellent relationship that we have had over the past six years,” said Tom Ford.

Marcolin, which is listed on the Milan Stock Exchange, produced 5 million pairs of glasses last year and is a leading eyewear company in the luxury segment of the market.

In Orlando at the Duty Free Show this month, Marcolin will also be debuting its first collection of sunglasses for the Swarovski brand, according to Marco Lares, Marcolin’s International and Duty Free Sales Manager in the Americas.

Marcolin’s portfolio of licensed eyewear brands also includes Cover Girl, Diesel Shades, DSquared2, Ferrari, Hogan, Just Cavalli, Kenneth Cole New York, Kenneth Cole Reaction, Miss Sixty, Montblanc, Replay Eyes, Roberto Cavalli, Timberland and Tod’s.

From the Swarovski Collection


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Duty free specialist ETC, who has primarily focused on niche fragrance brands and skin care in the past, has found some exciting additional opportunities outside of its “standard” product categories, says ETC president Elizabeth Taylor, several of which are already finding strong listings among top travel retail venues.

“As an independent distributor/agent, you have to regularly reinvent yourself and your business to stay in step with emerging trends and current economies,” Taylor tells Insider. “ETC is in the process of repositioning its brands portfolio, and has begun shifting the primary brand focus to timepieces and electronic accessories.”

ETC will be introducing a whole range of Electronic Accessories at the Duty Free Show in Orlando. Working through Travel Retail Innovations, BV., the worldwide DF/TR distributor, Taylor will be offering some of the world’s leading brands such as Harman/Kardon, Remington and Sennheiser, among others.

“With TRI, we will offer an excellent assortment of brands and products coupled with strong customer service, and focus on building brand awareness and visibility,” says Taylor.

ETC will also be highlighting several different categories of timepieces at a broad range of prices: “The range of our portfolio enables us to cater to a wide customer audience and to offer selections to our operators tailored specifically to their retail

needs,” she says. Among the new watch brands on offer from ETC is RIST watches, KidRIST in retro styles, and Plastic Brand Ion Sports watches. “Born in LA, the RIST collections are smart, light-weight and visionary and deliver on style, color, quality, and price,” says Taylor.

Products for Kids remains a special focus for ETC.

“I remain true to my original vision for ETC, by continuing to build a category of brands unique for Kids, although several of my brands appeal to kids and adults alike. I am very excited to announce that new to our Collections, we will be launching watches under the iconic Hello Kitty brand. Plus we are building our Disney and licensed watch category by expanding the assortment to include a new, premium collection with exciting designs, larger faces, charm bracelets, silicone bands, ceramic bands, bling.”

Taylor says that DF/TR retailers are starting to recognize these niche categories as viable and profitable additions to their product offer.

“This is evidenced by recent listings with major operators -- Duty Free World will list our Hello Kitty and two Mickey Mouse watches in the next inflight program with United Airlines and we have expanded our program with our Disney watches and Light-Up sunglasses with Dufry-Flagship for Norwegian Cruise Lines. We are also in the process of finalizing listings with

a national chain in airports with our Kids Sunglasses, Timepieces, and Hello Kitty fragrances.”

Added to this, ETC will be presenting at the Show novelty candy and candy combinations for kids featuring a whole array of licensed characters and themes.

“Collectively, what we continue to offer our retail customers is to partner with them by managing this category with a wide range of brands and products, prices, exciting promotional programs, and impactful displays, each designed to capture the interest and appeal of a vast audience of shoppers. ETC is known for its ability to build brands in this arena,” adds Taylor.

ETC also announces that it is expanding beyond its core base in North America DF/TR and the Caribbean, extending its reach to Latin America. Taylor will be appointing commissioned sales agents to represent the ETC brands in DF/TR in countries around the world. For more information, visit her at Booth # 1512.

Maui Jim Sunglasses will launch a range of featherweight, flexible sunglasses made from a proprietary alloy that offers new levels of comfort and style, thanks to its very light, ultra-flexible titanium-nickel ‘memory’ frame.

The six-model MauiFlex collection will be unveiled by Maui Jim at the IAADFS Duty Free Show of the Americas at Booth #2204.

The collection is equipped with lightweight Maui Evolution lenses

that provide superior optics, scratch and impact-resistance and a patented lens treatment that enhances color. The new styles also boast the unrivaled glare protection of Maui Jim’s patented PolarizedPlus2 lens technology.

The new MauiFlex collection offers modified-rectangle and aviator styles

designed to compliment a wide range of facial shapes and frame-lens color preferences.

Giles Marks, Director Global Travel Retail, adds, “Premium sunglasses are very popular purchases in travel retail and there is plenty of competition. However, Maui Jim has a unique selling proposition as we can offer sunglasses which not only look great, they provide a fantastic view too. The new flexible MauiFlex frames, which remember their shape, offer all this and are amazingly light and comfortable too.”

Jim at the IAADFS Duty Free Show of the Americas at Booth #2204.

lightweight Maui Evolution lenses that provide superior optics, scratch and impact-resistance and a patented

Maui Jim launches Mauiflex Collection

a national chain in airports with our Kids

ETC debuts new brands, new product categories and new market reach


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IAADFS 2011 Duty Free Show of The Americas BOOTH# 1301

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Braun Global Duty Free will be introducing an elegant black exhibition booth to the Americas with a newdesign in line with Braun’s overall brand appearance at the IAADFS Show in Orlando.

Together with the all-black packaging concept the stand creates a unified brand look and reflects Braun’s emphasis on design and high quality.

“It is a Braun concept that we want to roll out this look worldwide. The packaging for all of the products has been changed to black with just a small splash of color. The idea behind it is you have a shaver next to a epilator next to a household product and they all look like they come from the same brand. It is a unified look. It is one brand for all different product categories,” says Kathrin Mellin, Braun Global Duty Free Team. “It is what Braun has always stood for: premium products, classic design and bringing that all over the world. If you see a Braun product in Asia or if you see it in America or Europe, it should be displayed in the

same way so the consumer straightaway recognizes the brand for that quality and good design. That is really our main message of what we are trying to bring across with this.”

Braun will also present its point-of-sale concept, which includes materials for improved product display and shopper experience.

“We are developing all kinds of free standing units for displaying products in store, including the touch and feel concept. We have product consoles where the customer can pick the product up, look at it, turn it around,” says Mellin. “It is really important because consumers do not spend that long looking at a product in-store. The products that we have can get quite technically complicated. So if you have them clearly set out, structured with a navigation card, it is a lot easier to see the difference between one shaver and another shaver. By being able to pick the products up, shoppers can see the good quality for themselves. You can’t achieve that from just picking up the box and reading the back.”

The company previously unveiled the new design at the TFWA World Exhibition in Cannes to overwhelmingly positive reviews, says Mellin.

“The reaction to the new Braun booth was really positive from our customers,” says Mellin. “Compared to the way that Braun had been represented in the past it was a massive difference. Everybody was pleasantly surprised and really excited to see the new touch and feel units as well as the new POS materials that we now have to offer the stores.”

Braun will also showcase two new products in Orlando, the Braun Silk-épil7 Dual Epilator (below left) and the Braun Silk-épil Bikini Styler (below right).

New Braun image emphasizes quality and design

The Braun Stand in Cannes 2010


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Self Service Retail comes to the U.S. in styleSPECIAL SERVICES

Automated Retail Concept BV, creators of the innovative self-serviceShopping Wall, has appointed Canadian company Signifi Solutions Inc to market, manufacture and distribute the ground-breaking retail unit throughout the U.S. and Canada, including major airport, cruise and border locations.

The hi-tech self-service Shopping Wall — highly suited to the travel retail environment —is a stand-alone, hi-tech automated retail unit, which can be placed in any public location. The customer chooses an item from the stylish and well-presented display and through a state of the art touch screen interface can select additional product information and make a purchase within minutes.

The Shopping Wall offers a totally unique retail experience for travelers, suppliers and retailers alike, and has already proven to be a success in Europe. As Eric van Velzen, managing partner, Automated Retail Concept BV explains, the joining of these two companies places the Americas region at the forefront of new opportunities in automated retail.

“We have found a great partner in Signifi Solutions. They fully understand and appreciate our vision for the future of automated retailing and have the highest level of experience and knowledge of self-service technology. They introduced

a highly sophisticated DVD kiosk themselves, so we are therefore confident they will be the best partners to develop the market for our Shopping Wall concept in this region.”

Automated Retail Solutions has spent three years developing not only the technology behind the unit, which includes a fully remote management front and backend solution to collect comprehensive data and to control the kiosk, but also the look and feel of how products can be displayed.

“High level merchandising is key to successful retailing and we know how important it is to protect a brand’s image, which is why we are always developing the best possible displays for products and can adapt the units in terms of style, color and shape to suit a company’s branding and image,” says van Velzen.

The very first unit was launched at Schiphol Airport in 2009 in partnership with Schiphol See Buy Fly selling a wide variety of goods, such as electronics, toys, watches and confectionery. In 2010 Schiphol Media, in cooperation with Automated Retail Concepts, approached AKG by Harman, a leading manufacturer of high-end headphones, to use The Shopping Wall to launch their products at Schiphol Airport. The promotion was a real success, with over 2000 people

using the kiosk to purchase and obtain additional product information.

Automated Retail Concept has since introduced the concept in Frankfurt with Gebr Heinemann, selling perfume and cosmetics at the Gate.

“Each unit can be fully branded by the supplier and in the case of AKG, the unit serves as a large advertising display offering consumers the chance to learn more about the products and have a total brand experience, as well as make an immediate purchase,” adds van Velzen.

The company is currently in talks with a supplier about creating a bespoke unit designed for a particular product category. “The potential for bespoke solutions is endless. This particular company sees The Shopping Wall as the ideal solution for them to bring their new range of travel friendly products to market, which would otherwise not have such a large shelf space in the traditional travel retail offer. We can accommodate any brand and any category – with the exception of age restricted items, such as alcohol.”

The company views this unique solution as the ideal offer for airports as it bridges the gap between online retail and shopping in store, and answers many modern shoppers’ requirements. “Customers these days are used to the speed and efficiency of ordering online yet want the immediate gratification of

Left and above: AKG by Harman, a leading manufacturer of high-end headphones, used Automated Retail Concepts’ The Shopping Wall to launch their products at Schiphol Airport.

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having their purchase in their hand. With this solution we can combine all these elements without the need for additional sales staff or large retail spaces, making it an ideal investment for retailers with the highest potential turnover per square feet in the industry.”

“The Shopping Wall complements existing travel retail offers. These units can be placed in high volume areas, such as at the gates and transfer areas where time is critical and shoppers would welcome the opportunity to purchase quality items within minutes,” adds van Velzen.

Diana Albiol

About Automated Retail Concepts: The company was founded in 2008 by a group of shareholders and management with extensive background in travel retail, wholesale, design and airport building.

The company is headed by Eric van Velzen, Director Automated Retail Concepts (former director Take Off Multitronics Schiphol BV). Duty Free experts Sheila de Best and Nico Attema are also partners in the company and their experience needs no introduction, as this husband and wife duo were the founders of travel retail electronics specialist Dufri International BV. TheoSpanjaart is also a Partner in Automated Retail Concepts and his background includes INTOS interiors BV, the preferred construction partner of Schiphol NV.

For further information on The Shopping Wall contact: Eric van Velzen, [email protected]: www.aureco.nl

The Scorpio Group, which is now focusing greater resources on the Americas, will be featuring its Travel Retail Sales division, plus best sellers and lines for inflight, says Scorpio group sales and merchandising director Richard Kennedy.

Some highlights include the sWaP (smart Watch and Phone) range, already successfully sold inflight, and Aviator, Pierre Cardin and Time Design watches. See the range in Booth #1031.

The Scorpio Group, which is now focusing

Scorpio expands Americas offer

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400 BROADHOLLOW ROAD, FARMINGDALE, NEW YORK 11735 • 631.390.8620www.bayfireworks.com • [email protected]

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SPECIAL SERVICES

Deals available for Industrial andOffice Space in Miami-Dade County for the Travel Retail TradeWhether your company is looking for a new warehouse, distribution center or office in Miami - Dade County, the marketplace is filled with opportunities, says Sheri Shoup, Commercial Real Estate Broker, Coldwell Banker and former travel retail executive herself.

Now may be a great time for companies in the distribution and travel retail industries looking to relocate to and within the Miami area. Whether your company is thinking to upgrade office space, change buildings or locations, upsize or downsize, the commercial real estate market cool down has created some wonderful opportunities for companies with locations in Miami.

Overall industrial vacancy and rental rates vary by area. Airport West has 8-10% vacancy and rates range from $7.50 - $9.50 per sq. ft. NW/Medley has 10-12% vacancy with rates ranging from $4 - $9 per sq. ft. North Dade has 10-12% vacancy with rates of $3.50 - $6.50 per sq. ft. Hialeah and Central Dade have the greatest vacancy at 15-20%. Hialeah lease rates are $3 - $4.50 per ft. and Central Dade rates are $3 - $10 per ft. The Bird/Tamiami area has the lowest vacancy rates at 6-9%, with rates from $6.50 - 8.50 per sq. ft.

Beautiful new warehouse, manufacturing and flex space parks have opened offering competitive lease rates and incentives, including improved parking and loading areas. Industrial and warehouse users are moving from the older properties in the eastern part of the county to western Miami-Dade.

This trend puts pressure on the older corporate parks and buildings. Tenants are requesting rent reductions and abatements in exchange for longer term leases. Many tenants are locking in these low rates with longer term leases.

Purchasing buildings is still a challenge for buyers needing financing. Most purchases are facilitated with Small Business Administration loans. In 2010, 100 warehouses were sold. The average size was 23,721 square feet and average sale price was $55 per square foot. The bulk of these sales occurred in North, Northwest, Hialeah, Central Dade and Airport areas of the county.

The industrial condo market experienced higher volume at 150 units sold in 2010. The average unit size was 1980 square feet at a price of $105 per square foot. The bulk of these sales occurred in the Airport and Bird/Tamiami areas of the county.

Gorgeous office buildings that were unaffordable a few years ago to all but companies with the deepest pockets are now offering eye popping rates.

The central Miami - Dade area will experience the highest vacancy rates as new office buildings come on line. There is a total of 47.3 million sq. feet of rentable space in 464 buildings. Vacancy

is estimated to reach 25%. The average effective rental rates have dropped from a high of $29.62 in 2007 to $24.46 in 2010, quarter one. This area includes Downtown Miami, Brickell, Coral Gables, Coconut Grove, Doral, Miami Airport West, Blue Lagoon, Waterford, Miami Beach, Hialeah and Medley.

As an example, I recently represented an aviation equipment company relocating their corporate headquarters from Chicago to Miami. We were able to lease in a class A downtown building on a high floor with beautiful direct bay views. The landlord completely remodeled the 5651 sq. foot space to the tenant’s specs. He even added 6 months free rent and parking incentive to the tenant’s five year lease. Needless to say, the company loves their new home, especially since they can walk to the Miami Heat games!

If you are thinking about moving your office, warehouse or manufacturing facility, please contact me. Let’s see how we can improve your corporate address!

Sheri ShoupCommercial Real Estate BrokerColdwell Banker - [email protected]

Sheri Shoup

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Innovative brands looking to break into travel retail can turn to new company for guidance

Diana Albiol, the well known travel industry insider and founder of travel retail PR company DA Media Relations, has launched a new company dedicated to helping brands successfully enter travel retail. Her new venture, The TREND agency, combines PR and marketing with sales support to help create opportunities for brands wanting to expand into airports, airlines and the cruise market, particularly in Europe.

Albiol brings a distinct experience and point of view to her new agency, which launched right before the TFWA World Exhibition last October. As a former group editor across all titles at Frontier magazine, Diana gained much understanding of the market.

She tells TMI:“Working at the heart of the

industry put me in constant contact with all sides of the industry on a daily basis, from the airport operators, airlines and airport retailers to the buyers and suppliers. When I set up my own PR agency in 2004, it was clear I could help my clients with more than

just PR and media relations. I was soon involved in a variety of business development projects for different brands across the industry. This is what naturally led me to expand my business to include brand management as it complements the PR and media relations I already provide.”

Although Diana has been providing PR services for the past six years, she relaunched the company to better reflect the services she actually provides:

“PR and media relations are still at the core of the business and I will continue to include these services for all the brands working with the TREND Agency,” says Albiol. “But I also worked with many clients to develop their retail position in the market. This has included gaining new listings, as well as managing regional launches, and improving existing customer relations. Many companies really do not have the time or inside knowledge to successfully enter into travel retail and can easily be deterred by this global industry and its demands.”

As more big suppliers dominate the market, it is increasingly difficult for smaller brands to succeed, she notes. “The TREND agency gives smaller companies and brands the tools and knowledge to enter this challenging, unique retail arena with more confidence,” she says.

The TREND Agency currently represents 3 brands as a sales agent with exclusive rights in travel retail. Albiol is responsible for all marketing and product development for the channel, and handles all client relations on behalf of the suppliers.

For PR and media relations, The TREND Agency represents Beschle Chocolatier Suisse and Nadia Minkoff

London, as well as other clients on a project basis. For Nadia Minkoff London, Albiol is developing new business for her range of handbags and vintage-inspired jewelry. The TREND Agency has also been appointed exclusive agent for Spanish jewelry brand Arcobalena.

Albiol has also been working with some innovative companies in the travel retail baby market, and has launched Sack’n Seat, a colorful, lightweight baby seat that fits into a diaper bag and can be used anywhere. This affordable and simple “can’t do without” travel product is ideal for inflight and airport locations.

For more information on how The TREND Agency might help your company – especially U.S. brands looking to break into the European market—please contact Diana Albiol at: The TREND Agency, Tel: +32 4731 75096 Web: www.thetrendagency.com Email: [email protected]

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The Lacoste brand is returning to the Duty Free Show of the Americas following Devanlay’s takeover of the license effective this year. Following a definitive year in travel retail with a number of important new openings for the brand, Lacoste now has almost 200 points of sale at airports globally.

The company says it will be bringing exciting new brand additions to its travel retail offer, including eyewear, jewelry, watches and a new leather goods collection. Lacoste’s collection of Polo’s and fashion wear for women, men and children will also be shown.

The new Fall/Winter collection of leather goods from Lacoste, spearheaded by the R. George line, was inspired by the original drawings for the famous Lacoste crocodile, using the image which Robert George, friend of René Lacoste, had embroidered on his jacket in the 1930s.The result is a variety of bags, purses and pouches in tones of brown, gray and yellow.

Lacoste’s ubiquitous Polo is now available in more colors and materials than ever before, with 55 colors in 90 variations with styles for men, women and children for each season, including a wide assortment of solid and heathered styles.

Devanlay has secured agreements to

offer three new brands within its Lacoste travel retail area: watches from Movado, sunglasses from Marchon and jewelry from the GL Group.

International Travel Retail Director Catherine Bonelli says, “We are really delighted to be able to add these new brands to our travel retail portfolio. All perfectly complement the Lacoste fashion wear and leather-goods ranges with the same distinct spirit and style. They make our overall offer much more appealing and complete.”

“With the addition of the leather goods range and the Movado, Marchon and GL Group brands, we are very excited about the potential during 2011. The Americas in particular is a region that holds many prospects for Lacoste so we are very much looking forward to the opportunities presented by the Duty Free Show of the Americas,” concludes Bonelli.

Lacoste will be exhibiting in Orlando at Booth #1915.

W.B.

Lacoste expands TR offer with new leathergoods collections and brands

Travel Blue is celebrating 25 years as one of the industry’s leading providers of travel accessories and laptop bags, and is returning to the Duty Free Show of the Americas after a five year absence. The company says it is returning with a number of new and innovative products, as well as a renewed commitment to corporate social responsibility.

Travel Blue has implemented its social commitment by using more than 70% recycled materials in its packaging. Additionally, in the printing process they use Soya based environmentally friendly ink.

“We believe that beyond selling, we have the responsibility to our environment and society,” says Chairman Avi Levin.

Travel Blue offers some 300 Travel Accessories and Laptop Luggage items to the travel retail and domestic sector with a client base that includes Gebr Heinemann, Karstadt, Metro, Carrefour, King Power, Nuance, Dufry, and Relay. Visitors to the booth will find an extensive range of travel

accessories and laptop luggage, including several new additions: new neon name tags for easier bag recognition, two new earphone products and TSA approved safety locks.

In 2009 the company introduced its Free-Lost-Found service, which gives the consumer the comfort of knowing that his/her valuables can be traced and found all over the world. This service is completely free of charge for customers.

According to Travel Blue’s head of travel retail, Jonathon Smith, the company has shown strong growth in domestic distribution for the Americas over the past 12 months. He also indicated that the company sees long term potential in the

region. “The quality and variety of our product range, our commitment to environmentally friendly packaging, and our Free-Lost-Found service are a powerful combination for airport retailers,” says Smith.

Travel Blue claims that comparative tests with competitive brands have shown that stocking the full product line can increase sales by up to 25%.

Travel Blue will be exhibiting at Booth #2404.

W.B.

Travel Blue returns to Orlando and celebrates 25 years

past 12 months. He also indicated that the company sees long term potential in the

at Booth #2404.

Travel Blue claims

tests with competitive brands have shown that stocking the full product line can increase sales

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With more than 25 years of experience in the luggage industry, former Tumi travel retail manager Phil Peterson says he is now busier than ever.

Peterson has been an independent brand representative since February 2010. At the beginning of the year he was appointed the Americas Agent for accessories supplier Travel Blue handling the company’s duty free and domestic business in the region,

“The name of my company is Phil Your Bags, LLC. As challenging and as time consuming as this is, I love my work and I have some great brands,” he says.

Peterson’s leather goods and travel accessories portfolio includes brands with names both very well-known and less so including Bric’s, Zero Halliburton, Boconi, Tucano, Scully, and A.Saks.

Peterson says one challenge he has faced since he began his company is that some retailers are hesitant to take on some of the lesser-known brands.

“Duty free operators want big name brands. Sometimes brand recognition

comes from listing a less known brand. Sometimes it is better to get a product on its rise,” he says.

Peterson says he has used his almost three decades worth of experience in the luggage industry to build lasting relationships and get his brands listed.

“I have been in the luggage industry since 1984. In 1988 I was offered a position with what was a little company at the time called Tumi. The next twenty years were pretty eventful to say the least,” says Peterson, who became the first full-time salesperson for Zero Halliburton when he joined the company in September 2008. “I joined Zero Halliburton because the opportunities for growth were great. Despite 2009 being a really difficult year for not only the luggage industry, but travel retail and duty free in general, I managed to have an increase in sales that year.”

Peterson still represents Zero Halliburton, but now as an independent representative.

Zero Halliburton is one of many of Peterson’s brands that are listed in JFK T4,

where the retail concession is operated by Sevaria.

“The Sevaria guys have been tremendous. They carry Bric’s, Zero Halliburton, Tucano, Scully, A.Saks. Bric’s is really starting to take off there. Tucano is a brand with a tremendous selection of computer accessories. The sky is the limit with Tucano. It is at JFK and at Boston Logan,” he says. “Scully is a leather goods firm from California with a good stable of products. A.Saks are simple nylon, lightweight bags that are a force in the airports.”

Peterson says he is working to develop Bric’s business in Latin America, where it has gotten a foothold at the arrivals store in Sao Paulo airport.

Even with his busy schedule and portfolio of leather goods and travel accessories, Peterson says he is open to adding more brands if they complement his portfolio.

“I am always willing to build and add the right brand. I am always looking,” he says.

Phil Your Bags: Former luggage exec P. Peterson marks 1st year as independent rep

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Mimi Mentasti-Powe, long-time spirits executive most recently with Beam Global Travel Retail, has joined LVMH’s Moët Hennessy Division as Director of U.S. Travel Retail. Mentasti, who started her career with Seagram, will be based in South Florida. The Moët Hennessy division includes some of the most prestigious spirits brands in the world, including Hennessy Cognac, Glenmorangie, Dom Pérignon and Moët & Chandon champagnes, and Grand Marnier, among others. She can be reached at [email protected]

Henry Saumell has joined the Gucci Group Watches & Jewelry sales team, where he will be directly responsible for the Caribbean region. Saumell will be based in Florida, reports Michael Benavente, GGWJ Managing Director. Saumell brings 12+ years of watch selling experience, specifically in the Caribbean / Latin America region, to the position. He

was most recently with Bulova, following several years with the Movado Group. Henry can be reached at [email protected]

Miami-based businessman Philip Levine,founder of Onboard Media credited with helping to create the Port Lecturer concept, has launched his new company, Royal Media Partners LLC, which will be working exclusively with Royal Caribbean International, “to transform its onboard and port shopping services.”

Hershey has appointed Steve Bentz as World Travel Retail Team General Manager. Based out of Hershey’s head office in Pennsylvania, Bentz has been with the Hershey Company for the past 26 years and has key experience in the military market as well as a very strong background in customer marketing. BethCruz will continue as Director of Travel Retail working closely with Bentz to build

up capabilities around the globe, says the company.

The International Air Transport Association (IATA) said it has decided to move its 67th annual general meeting to Singapore from its planned site in Cairo following the unrest in Egypt. The meeting is scheduled to run June 5-7, and expects about 800 delegates to attend, including some 150-200 CEOs from airlines, manufacturers, airports and other industry partners.

Leigh Irvine has been appointed as the new Regional Director for the Bacardi Global Travel Retail Americas Region. Irvine, who has been in travel retail for 15 years, was previously the Regional Director for Western Europe for Bacardi. He began his career as a buyer for the Nuance Group and prior to joining Bacardi Travel Retail in 2007 he was a senior buyer for World Duty Free, part of the Autogrill Group.

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F o r m e r P h i l i p M o r r i s International executive Tom Martinez has been appointed Gold Silk Regional Manager for the Americas and Caribbean as part of the strategic initiative to provide increased service and support to the region.

During 2009, Gold Silk—an award-winning, duty-free retail travel supplier – has experienced tremendous growth. According to CEO and President, Nasib Thabet, “the addition of

Tom Martinez to the Gold Silk team will allow our company to continue to expand its global focus and capabilities.”

As regional manager, Martinez will be responsible for all operations in the region, including: Mexico; Central America; South America; the Caribbean Islands and USA, with a primary objective of developing travel retail sales in Latin America.

He will also assist with the region’s airport and border shop, airline and cruise retail travel channels.

Said, Martinez, “I will be pursuing all opportunities to introduce what, I believe, are the most dynamic jewelry collections out there for the retail travel industry. I’m eager to begin moving the Gold Silk brand into the important duty free, and travel retail markets and also selected specialty markets,

domestic department stores, and vacation resorts. It’s a very exciting time to be a part of this terrific company.”

Prev ious ly, Mar t inez worked for Phil ip Morris International (PMI) for fifteen years, where he held a variety of sales positions.

Martinez will be attending the Duty Free Show of the Americas. He can be reached at Cel. 956 240 5911

About Gold SilkWith corporate offices and manufactur ing located in Albuquerque, New Mexico, Gold Silk offers a broad range of elegant and sophisticated jewelry collections. Gold Silk’s unique manufacturing concept has been successful in the domestic market for many years and remains a top selling private label product for one of the largest retailers in the US. In 2009, Gold Silk received

the DFNI Award for Best New Product for its Storybook Jewels collection, a line targeted to the burgeoning children and tween markets. Gold Silk is marketed worldwide, with clients in Europe, the Middle East and Asia. http://www.goldsilk.com

Yvonne De Ridder, area manager at Philippe Gerard Enterprises, has left the company, and will be replaced by Sabrina Cherbit. “Yvonne has been a great asset to our organization and we wish her all the best with her new endeavor,” said PGE President, Jean-François Picot.

Tom Martinez joins Gold Silk as regional manager for the Americas

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Kevin Baker, key account director for Brown-Forman Travel Retail, will be leaving the company April 30, 2011, to start his own travel retail consulting service. The company has announced plans for a global search for his replacement. “We certainly hate to lose a person of Kevin’s considerable skills but we recognize his desire to start his own consultancy firm and wish him the best of luck. In fact, we plan on taking advantage his skills and contacts as a potential client. In the meantime, other Brown-Forman personnel will assume Kevin’s duties while we search for his replacement,” explained Jim Perry, Brown-Forman managing director of Travel Retail. Baker joined Brown-Forman in 2000 and spent the past 11 years working out of the London office.

LVMH has appointed Christopher de Lapuente as Global President and CEO of Sephora, effective March 31, 2011. All regions worldwide will report to him. For European operations he succeeds Jacques Levy. Christopher de Lapuente will also be a member of the LVMH Executive Committee. In this capacity, he will take on additional responsibilities within the Group. David Suliteanu, who leads Sephora USA, will continue to drive its spectacular growth in the Americas. Commenting on this new organization, Bernard Arnault added: “Joining LVMH as a member of the Executive Committee and head of Sephora, Christopher de Lapuente will bring to the Group a wealth of international experience; his know-how will be a precious asset for the global growth of Sephora and add to the

continued success of LVMH.” De Lapuente has spent the whole of his career for the past 28 years within the Procter & Gamble Group.

TFWA has appointed Cécile Lamotte as Marketing Director with full responsibility for all marketing and communication ac-tivities of the Association, effective imme-diately. Lamotte will be based in the TFWA office in Paris. In addition to her marketing responsibilities, she will oversee the busi-ness networking and social events at TFWA World Exhibition and TFWA Asia Pacific & GATE ONE2ONE. Lamotte has a solid background in marketing and communica-tions with 15 years experience in various roles including events management. Lamotte can be contacted by email at [email protected].

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