americas fdfa nov 2014

p.30ALFA Brands explores p.28Bright future

for Opticaset p.12Canadian border storesp.5The

Canadian way

FDFA 2014

NOVEMBER 2014 • FDFA • VOL 24, NO 5

BLUE WATER BRIDGE: More than a makeover p.8

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

Letter from the Editor

This year marks an important milestone for the Frontier Duty Free Association’s annual con-vention and trade show; after four successful years in Niagara

Falls, one of Canada’s duty free hot spots, the event moves to the dynamic city of Toronto.

Irish playwright George Bernard Shaw, honored just down the road from the Falls in Niagara-on-the-Lake by way of an annual the-atre festival, once said that “progress is impos-sible without change.” It seems that the FDFA has taken Shaw’s sage advice. Consequently, this time around we’ll see new sights, have new networking opportunities and generally experience a healthy shakeup of the established run of things.

Of course, change also tends to bring about novel ways of thinking. At this year’s show we can expect to hear from operators and brands alike on how they’re planning to keep the industry vibrant over the coming year.

This issue of Americas Duty Free acts as a prologue to the discussions we’ll have in the coming days. It is filled with companies of all sizes, each with a stake in country’s duty free industry, and each with a unique take on how best to bolster sales and drum up interest in land border travel retail.

There is no one-size-fits-all approach to duty free, and I hope that the variety of stories from across the country contained in the pages that follow serve as inspiration for your company, whether you’re the biggest of the big or the new kid on the block.

I hope you enjoy this edition of Americas Duty Free, and I look forward to seeing you at the show and learning what you’re doing to strengthen your business and, by extension, the Canadian travel retail industry at large.

Kindest Regards,

Hibah [email protected]

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

The views expressed in this magazine do not necessar-ily reflect the views and opinions of the publisher or the editor. November 2014, Vol 24. No. 5. Printed in Canada. All rights reserved. Nothing may be reprinted in whole or in part without written permission from the publisher. © 2014 Global Marketing Company Ltd.

AMERICAS DUTY FREE & TRAVEL RETAILING

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

www.dutyfreemagazine.ca

PUBLISHERAijaz Khan

[email protected]

EDITORIAL DEPARTMENT

EDITOR-IN-CHIEFHibah Noor

[email protected]

EDITORWendy Morley

[email protected]

ASSOCIATE EDITORRyan White

[email protected]

ART DIRECTORJessica Hearn

[email protected]

CONTRIBUTORSClaire Malcolm

ADVERTISING SALES

ADVERTISING & MARKETING EXECUTIVEJacqueline Hammill

[email protected]

CIRCULATION & SUBSCRIPTION MANAGERMonica Kucharski

[email protected]

change

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NOVEMBER 2014 • VOL 24, NO 5

Contents

5FRONTIER DUTY FREE ASSOCIATION

The Canadian wayWhether on its home turf or on the world stage, the Frontier Duty Free Association fosters friendship and knowledge sharing while representing the Canadian duty free industry

8BLUE WATER BRIDGE DUTY FREE

Rebuilding and rebrandingBlue Water Bridge Duty Free is getting more than a makeover with renovations that change the look and effectiveness of the store plus a new name: Sarnia Duty Free

12CANADIAN BORDER DUTY FREE

From all anglesTo be truly effective, marketing needs to take more than one aspect of business into account. These Ca-nadian border stores have discovered some very dif-ferent ways to improve sales

18MARKETING CAMPAIGN: NIAGARA

Teaming upWhen the Niagara region duty free stores examined the challenges they were facing, they realized they had a better chance of overcoming them if they joined forces

20SAULT STE. MARIE DUTY FREE

Good things aheadWith a new store and increasing traffic from the US, Sault Ste. Marie Duty Free is expecting the future to be bright

22L’ORÉAL LUXE TRAVEL RETAIL AMERICAS

The ultimate in French beautyNearly half a century after Armand Petitjean first cre-ated the Absolue cream, Lancôme continues innovat-ing and nourishing Absolue’s luxury facets

26RITTER SPORT

New World ambitions for Old World favoriteColorful German chocolate brand, Ritter Sport, is aim-ing big in 2015 with plans to take its travel retail range to the Americas

28OPTICASET

Opticaset steps out of the shadeBy incorporating advanced technology into its sun-glasses and building awareness of the brand on a grand scale, Opticaset is looking forward to a brighter future

30ALFA BRANDS

More to exploreALFA Brands visits Toronto for the FDFA show with a range of new products across categories that are set to wow operators and consumers alike

32CROSS

Smarter and more skeptical shoppersNowadays, more shoppers are skeptical about duty free purchases, especially the US consumer

34CITIZEN

A watch for each CitizenCitizen edges further into the TR market, delivering a catchy alternative to pricey luxury watches

42TFWA WE REVIEW

TFWA celebrates 30 years and continues to growA record number of attendees flock to Cannes for TFWA’s 30th World Exhibition


Ahead of the Frontier Duty Free Association’s 2014 convention, Laurie Kar-son, Executive Director of the FDFA, is excited. “This

year’s convention and trade show is going to be very special,” Karson says. “The numbers are looking great. The convention trade floor at the Hyatt Regency is larger than that at the Hilton Niagara, so the floor has been opened up to more suppliers. Overall, everyone is excited to be in downtown Toronto as there are so many options for evening dinners

and activities. The suites sold out quite a while ago.” The convention will be held from November 16–19 at the Hyatt Regency hotel. Attendees are expected to take up most of the rooms, and the convention and trade show portions will occupy most of the available facilities.

The success doesn’t just come from attendee numbers, however. Karson says the association has also set a historical record for sponsors this year. “Part of the reason for our successful program is that we give sponsors the opportunity to speak with their clients or showcase their products. We want to continually evolve this program so it is more than just placing a sign outside a sponsored convention event. This year we also created a new sponsorship bundle program; liquor companies can present their chosen brands at three events: the Welcome Reception, the hospitality lounges and the post-Gala event on Wednesday.”

The hospitality lounges Karson mentions

will be open to delegates on Monday and Wednesday nights, and will have a Speak-easy theme. The Welcome Reception also hearkens back to the Prohibition Era with a Great Gatsby theme. Proximo Spirits has signed on to host the yearly Fun Night, which will be held this time around on the evening of Tuesday, November 18 at Spin, a glow-in-the-dark ping pong/disco.

Other sponsors include Imperial Tobacco at the Platinum level; Diageo, JTI-Macdon-

Frontier Duty Free Association

“This year’s convention and trade show is going to be very special. It has been a long time since it has been held in Toronto so we are anticipating additional attendance this year.”

LAURIE KARSON, EXECUTIVE DIRECTOR,

FRONTIER DUTY FREE ASSOCIATION

The

Whether on its home turf or on the world stage, the Frontier Duty Free Association fosters friendship and knowledge sharing while representing the Canadian duty free industry

CANADIANWAY

Anthony von Mandl, owner of Mission Hill Wineries, gave Summit attendees a personal tour of the winery last year

6 AMERICAS DUTY FREE & TRAVEL RETAILING NOVEMBER 2014

ald, TFWA and Pernod Ricard at the Gold level; Duty Free Americas, First China Tobacco, Labatt, Molson Coors and Peter Mielzynski Agencies at the Silver level and Bacardi, Jaan, Godiva, Lifford, Patron, Peller Estates, JOANEL, Mark Anthony Brands, Rémy-Cointreau, Kirkwood Diamond/Don Good and Brown Forman at the Bronze level. Contributing Supporters are ALFA Brands, DFX Distribution and Turkey Hill Sugarbush.

Learning what delegates wantKarson and the FDFA feel especially pre-pared this year given that the association is armed with the surveys from last year’s show, feedback Karson says is the best in the association’s history. Last year’s event was the last to take place in Niagara, and Karson had nothing but good things to say about the Hilton and the larger Niagara community as the FDFA’s venue of choice for four years running. “We are grateful to the Niagara community and the Hilton for their dedication to our show,” she said. “But a fresh city and hotel is something we are all looking forward to. Our goal is to continually evolve year after year and make it a memorable occasion on the busy travel retail events calendar.” Karson confirms that next year’s event will be held at the Westin Bayshore in Vancouver, 2016’s will be back at the Hyatt Toronto, and then at Westin Montreal downtown for 2017.

This year will be the final event for Abe

Taqtaq as the President of FDFA. He feels the convention is a great way to network and strategize with operators from across the country, and a superior opportunity for suppliers to continue and establish relation-ships with key decision makers.

The windy cityAs the show in Toronto comes to fruition, the FDFA is also looking even farther ahead to the 2015 Business Development Summit, which will be held in June 2015 in Chicago. “We’re looking at bringing in some keynote speakers and topics that will help enhance the operators’ ability to increase effective-ness at their stores,” Karson says.

This year’s Summit was held in May in Kelowna, BC. Karson noted that the event had a stellar lineup of expert speakers who covered topics such as national credit card rates and enhancing the customer experi-ence. Roundtable talks among members also took place where experiences were shared, challenges were discussed and solutions were brainstormed. “For social activities, we were lucky this year,” explained Karson, “as we were given a personal tour of Mis-sion Hill Wineries from the owner, Anthony von Mandl. The entire Summit proved to be very useful from both business and networking standpoints.”

Working for the industryOf course, the FDFA is about much more than just event planning. The association recently began an intensive government

relations campaign to re-educate members of parliament on the importance of duty free as an industry. “When government offi-cials make decisions that could impact our industry, it’s important that they recognize the value that duty free brings to the Cana-dian economy and especially border com-munities’ economies,” Karson explained. “At the end of the day, many people still don’t realize that our land border busi-nesses are owned by Canadians and employ Canadians. This is a vital point that we need to get across.”

The FDFA was also a proactive par-ticipant in the recent formation of the Duty Free World Council. “We’re very proud to be a part of this initiative,” Karson said. “It is crucial in this day and age, when the members of the world’s duty free associa-tions share so many similar challenges, that a body be created whereby we can work together to share learning and benefit as a whole.”

Finally, the FDFA is in the process of re-establishing goals to ensure that its national brand and message to the consumer is as prominent as possible, not only from a digital perspective but also through other marketing methods. “We anticipate that by 2015 we will be able to showcase some key initiatives,” Karson concluded. “It will be exciting to share the news with our stake-holders and the public when the right time comes. In the meantime, though, there’s plenty to keep us busy!”

The annual Business Development Summit features talks on a variety of topics of interest to Canadian duty free operators, as well as roundtable discussions on issues that affect the industry

Last year’s golf tournament in Kelowna, which coincided with the Business Development Summit, raised CAD$16,000 for breast cancer research; the FDFA is currently planning the 2015 Summit

Frontier Duty Free Association


Blue Water Bridge

Halfway through the build-ing of the original Blue Water Duty Free in 2001, the devas-tation of 9/11 occurred. Travel plummeted and the future of

travel retail, including this new venture, were in question. Thankfully, travel and its related industries recovered, and Blue Water Bridge’s business grew. By the earlier part of this decade the management of the duty free store, which is located just west of London at the southern tip of Lake Huron, decided it needed a new warehouse.

What began as a relatively small project, however, ended up turning into a major ren-ovation and expansion. The planning took a year, and another year was spent building. In keeping with the company’s tradition, the renovation did not run smoothly; it took place during the worst winter Southwestern Ontario has ever seen. The extremely low temperatures in addition to excessive wind and large quantities of ice and snow meant the crew was unable to pour concrete or erect steel. This brought construction to a standstill, causing the project to fall months

behind schedule. Once construction finally began, it had to be put on hold once again during the peak summer months, the land border’s busiest season. Work began again in September, and the final phases are just being completed.

The company decided to expand their renovation project to such a degree in order to create a comfortable and effective flow of traffic along with a modern, bright, visually appealing atmosphere. Management worked together with designers to ensure that the store’s departments would flow seamlessly into one another, and worked with suppli-ers’ and their own research to manage the categories in such a way that the store will increase capture rate and ticket sales. Some departments were moved and some areas were expanded to allow for additional list-ings and improve the shopping experience.

Expansion of liquor departmentAccording to Tania Lee, Vice President of Sales, liquor is a main sales driver for the store. Blue Water wanted to increase the number of listings and of duty free-exclusive

Rebuilding

Blue Water Bridge Duty Free is getting more than a makeover with renovations that change the look and effectiveness of the store plus a new name: Sarnia Duty Free

andrebranding

Blue Water Bridge Duty Free was built during a time of great upheaval in the travel industry, and its renovations took place during Southwestern Ontario’s toughest winter to date

by WENDY MORLEY


products it has on offer. This increased space and offering is an informed decision, as alco-hol sales have increased to a greater degree than overall sales in the past two years. Two years ago the government dropped its liquor markup by 20%. Blue Water has taken this significant opportunity to grow its Canadian customers who had been purchasing liquor in the US for various reasons including pricing, the strong Canadian dollar, and the convenience of being able to shop for a large selection of products at mass- market retailers.

Blue Water’s new larger liquor depart-ment uses light to differentiate the space, visually dividing it and providing some interest within the larger area. Spotlights help the customer to view innovative and compelling displays, which will change. The large liquor area offers a full-size tasting bar featuring hanging pendant lights, a stone countertop and built-in showcases to display the product being featured that month.

Suppliers can customize the space by using magnetic graphics, custom displays and portable tasting bars. In addition, the bar’s branding and appearance can be changed with the use of backlit graphics. Photo-op benches such as the Jack Daniel’s bench will be dotted around the area and around the bar, in order to encourage visitors to stay longer in the area.

All of the company’s liquor suppliers have produced new units for the renovated space; Ciroc, Stolichnaya, Zacapa, Captain Morgan, Hennessy, St Remy, Forty Creek, El Dorado and Highland Park are a few examples of the brands that will install custom units. The store’s top-selling brand, Crown Royal, will increase its space from nine feet to 15, and Johnnie Walker will have a brand new boutique featuring a custom back wall unit, custom floors and custom gondolas. This boutique, which has a very sophisticated, refined look, anchors the Scotch section and will be highly visible.

The store has also added a large beer cooler area, with three full-size beer fridges. “Canadians are moving away from mass-market beer brands and toward craft beers,” says Lee. “This area will offer more Ontario craft beers and allow for the ability to mix and match, creating something of a per-sonalized sampler instead of a customer having to purchase a larger quantity of one brand.” In this section the store also offers the increasingly popular 473mL can.

Liquor coolers are also found in the new refrigerated area. Liquor-based coolers are not available in Michigan, and so they are a popular choice for Americans as their last purchase before crossing the border. Because cigars are a growing segment in duty free, Blue Water has also added three new humidors in this area. Also enlarged is the store’s wine area, allowing for more promotional space. The wine section fea-tures attention-getting full size wine barrels on its back wall.

During the reconstruction, Blue Water Bridge built an 800-meter beer cooler area, which will also hold liquor coolers, a popular purchase for Americans

A freestanding wall will be lit up to draw attention to purses and other accessories in the luxury section

The new tasting bar will feature hanging pendant lights, a stone countertop and built-in showcases to display the feature product

Blue Water Bridge has expanded its jewellery selection as part of its goal to make the luxury section feel approachable


This massive expansion that was meant to be nothing more than a new warehouse resulted in about 800 square meters being added to the retail building. Of this, about 415 square meters have been added to the public retail space, including about 185 square meters for the expanded beer section.

In line with its large expansion, Blue Water has also completely revamped its advertising and marketing. Lee says, “The strategy was to create increased awareness of the store and its products, and to tar-get day-trippers and one-night-stayers by reducing consumer anxiety and confusion regarding duty free shopping. The goal is to make duty free an integral stop along a customer’s journey.”

To that end, the company has rebranded itself as Sarnia Duty Free in order to clarify its location and bring the logo in line with the store’s new look. It has created a brand new website and related portals, making it more compelling to visit on line, and to further serve its suppliers. The store has also increased its digital marketing budget and its social media presence. It is currently working together with an advertising agency to create content and contests, increasing audience. Further embracing the internet, the store has created a wellness site with blogs, recipes and seminars. Called “Journey Well,” this site is intended to further capture the attention of the border crossing’s poten-tial customer.

With these and other marketing strate-gies including preshow advertising with Cineplex in addition to the expansion, redesign and category management changes, Blue Water, or Sarnia Duty Free, should have some even more positive figures to share in the coming years.

animated area that was imaginative, fun, and appealing to all ages. Promotional displays were added and the back walls were fully customized by suppliers. Also, other new fully customized units have been added to the area, including those for Guylian, Frey, Turkey Hill, Ferrero/Milka, Chupa Chupa and M&M’s.

New additionsIn addition to expanding departments already in existence, Blue Water added a new department called Marketplace. This area, located near confectionary and the cash wraps, offers a constantly changing range of one-time buys. These items are not widely available, and they carry significant savings. This creates urgency for the customer to buy immediately. Products in this area include consumables, travel essentials and other items that are easy to purchase. This section is especially appealing to those who are just traveling for a day and therefore have no liquor or tobacco allowance. Day-trip and 24-hour border crossings make up about two-thirds of all auto traffic at this border crossing, and so that is a significant market that may not otherwise be reached.

“By getting them into our store we hope them to become better acquainted with our duty free offerings such as liquor, so when they are traveling on longer-duration trips they will be motivated to shop at our store,” says Lee.

Finally, Blue Water added a full travel section. This area concentrates on car travel and travel comfort. “Many of our travelers drive to Florida,” says Lee. “Some of our offerings will include travel massagers, for example, for the aging population.” The department carries a large number of prod-ucts that might be of interest for someone driving a long time, to make their journey more enjoyable.

Whisky leads the chargeWithin the liquor category, Blue Water saw strong growth in the whisky segment, with large increases in American whiskey along with single malt and blended Scotch whisky. Imported whiskies showed the biggest growth. After a stellar year for Canadian whiskies in 2013 with increases of 5%, however, Blue Water has seen slight declines in that sub-segment this year. That being said, Canadian whisky is by far the largest sub-segment within whiskies, and premium selections such as Forty Creek are leading the sales.

The American whiskey sub-segment is growing as consumers in Canada are migrating to bourbon and other stronger profiles such as Jack Daniel’s and Maker’s Mark, just as seems to be occurring in the rest of the world. In keeping with the trend toward craft and smaller batch products, smaller batch American whiskeys are also in demand, and Blue Water is facing a short supply for many SKU’s.

Irish whiskey too has been seeing a worldwide growth in sales. Blue River saw a 5% increase in 2014 over 2013 in that sub-segment, whereas Jameson, the segment leader, has shown volumes rising by about 17% in the store’s most recently completed fiscal year. Some of the most popular brands and expressions in the category include Jameson Signature Reserve, Tyrconnell, Connemara, Greenor and Kilbeggen. Lee states that the store’s biggest challenge, as with many of the American whiskey SKUs, is to secure consistent supply.

Other categoriesWhile liquor is the main sales driver for Blue Water, that does not mean the store neglects the other categories. A great deal of thought was put into the new luxury department, and the look reflects the store’s aim, to make luxury feel approachable. New jewellery showcases were added, and a new lit-up freestanding wall was added in order to highlight purses and other accessories. Feeling they were not making the most of their potential sunglass sales, Blue Water allocated a space for sunglasses in the new design, allowing for custom units. The fra-grance/cosmetics area was also expanded, and includes new units from Shiseido, Lancôme, Prada, Lacoste, Valentino, D&G, Bvlgari, Gucci, L’Occitane and others.

In the new layout, confectionary has been moved to the center of the store, near the cash wraps. The idea was to create an

Blue Water Bridge The fragrance/cosmetics area was also expanded, and includes new units from Shiseido, Lancôme, Prada, Lacoste, Valentino, D&G, Bvlgari, Gucci, L’Occitane and others

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Canadian Border Duty Free

As with any business, the bor-der store’s main priority is its bottom line. Without sales and profit, a business can-not last long, and these days

both can seem harder and harder to come by as competition and expenses increase. And whereas competition was once considered to be from stores in the vicinity, retail locations are increasingly finding themselves losing market share to internet retailers.

It takes a lot of creativity to compete in such a market, and Canada’s border stores are not short on creativity. The following four retail operators have devised four com-pletely different ways to improve business, each with its own success.

Make the front line feel appreciatedAt the Sault Ste. Marie Duty Free store the management came to a surprising conclu-sion; instead of focusing on the custom-ers for their 2014 marketing campaign, they should focus on the staff. Count-less studies show that a feeling of being listened to and appreciated can be even more important than additional pay in an

employee’s effectiveness at work, and man-agement at Sault Ste. Marie Duty Free rec-ognizes that they play a strong role in their employees’ frame of mind. An employee who doesn’t feel listened to may ask why he puts forth the effort to sell when it isn’t appreciated.

More insidious but perhaps even worse for the store’s bottom line is simply the unhappy employee. A staff member that dislikes coming to work is going to carry that negativity around. He or she may be going through the correct motions and performing duties but this does not make a customer feel comfortable or like opening up his wallet.

Ivana Boston, Sales Manager says, “The one thing that can really upset employees is the feeling that management doesn’t appre-ciate them. If management appears uncon-cerned about the efforts that employees put in, they feel they don’t matter, that they’re just a number. This disconnect creates a gap between employees and management and over time motivating staff can become more and more difficult.”

Bearing all this in mind, in 2014 the company decided to focus on its employees

and make them feel valued. The thinking is that if employees feel valued, they will be more motivated to increase sales. “Our staff members make up the front line,” says Boston. “They answer the phone, greet customers and sell our products. If they’re unhappy it’s almost impossible to motivate them. This affects how we come across to customers.”

To accomplish this task, the company implemented a program that achieves two goals by showing staff that management cares and by giving them incentives. “Giv-ing our employees a reward is our way of showing them that the work they do is appreciated. We want to demonstrate that we value them and their work efforts.”

Of course budget is always a concern. How is it possible to create a rewards pro-gram that would foster a team environment, stimulate employee interest and create moti-vation without spending a lot of money? In fact the management found it was quite easy. They purchased gift cards for various places around the city, from coffee cards to movie passes. To win, an employee could do some-thing positive or noteworthy, go the extra mile with a customer or demonstrate that

From all To be truly effective, marketing needs to take more than one aspect of business into account. These Canadian border stores have discovered some very different ways to improve sales

Sault Ste. Marie Duty Free decided their best marketing strategy for 2014 was to ensure their staff was happy and felt connected

by WENDY MORLEYangles


he or she was a team player. The company also factored in the employee’s attendance and history of loyalty.

The program ran from May to Septem-ber, and all employees were eligible. The company awarded gift cards every two weeks on payday. Employees who were awarded a gift card would find it attached to their pay stub with a note that read: We just wanted to let you know that having you on our team makes all the difference. Thanks for all that you do!

In the end, stimulating employee interest and fostering a helpful team environment did not cost a great deal of money but did bring about great rewards. “It took some listening on our part and remembering to say thank you to those who provided excellent customer service,” says Willie Deplonty, Sales Supervisor. “Something as simple as praise for a job well done goes a long way and leaves a lasting impres-sion. The atmosphere around the store this summer was very fun and enriching, and morale was high.”

At the end of the incentive program, the company had enough money in the budget to throw a pizza party for employees, and the mood was celebratory. The company’s man-agement feels that by embracing the pro-gram, everyone ended up benefiting from the experience. “All staff members started thanking each other more, as well as trusting and engaging with each other more,” says Deplonty. “This improved morale and also customer service. Such as small effort like saying thank you makes people feel inspired to do more and go further.”

Customer, market to thyselfPeace Bridge Duty Free (PBDF) embraced the internet with a viral marketing promo-tion in 2014 with their “found it @ Peace Bridge Duty Free” promotion. The com-pany encouraged customers to use Insta-gram, YouTube and facebook to share great deals, interesting finds and favorite brands they’d purchased.

This promotion worked on different

levels. First, it served the purpose of helping the company to brand the store in terms of its selection, unique or exclusive products and value. Second, and what the company considers most important, the voices of the promotion were not those of employees or marketing agencies but rather the custom-ers themselves. “Nothing is more valuable than a real customer saying something positive with no script, and then posting it on social media,” says Bonnie Gates, Peace Bridge Duty Free Marketing Manager. “For this campaign the customers’ voices were put front and center as they themselves promoted the store, highlighting all the fabulous finds they found at Peace Bridge Duty Free.”

The “found it @ Peace Bridge Duty Free” tagline was used in all social media, radio ads and visuals associated with PBDF’s marketing campaign


and successful and adding to our brand value,” added Jim Pearce, General Manager. “Our plans include growing this strategy and building relationships with new and existing customers while promoting and branding the luxury goods that Peace Bridge Duty Free continually has to offer.”

A gift with purchase never hurtsFor Importations Guay Ltée (IGL), market-ing does not have to be complicated. Located at the Quebec border on the way to New York State’s picturesque Adirondacks, this duty free store knows what works.

In 2014, IGL’s big marketing campaign was for Bacardi, emphasizing the traditional drink of Bacardi and Coke. Customers were first given a large discount on two bottles of a Bacardi rum product, and then a free bottle of Coke was offered as a gift with purchase.

“Giveaways with a purchase are a great way to increase sales,” says Justin Guay, Vice-Prési-dent, Importations Guay Ltée. “We can see proof of this with the increase in sales of Bacardi in 2014 over 2013. Sales of Bacardi Superior easily doubled and sales of Bacardi Gold more than tripled.”

Because this was the store’s showcase spe-cial, every customer was informed about it as they

entered the store. Bacardi and IGL made the decision to make this purchase especially easy; the two bottles of Bacardi rum came in a quick grab bag together with the bottle of Coke. This made it easy for the customer to handle three bottles. Because the bag was clear, it was also easy for the cashier to scan and pack the products away.

“Overall this promotion has been highly successful and one of our top promos ever,” says Guay. “We are looking forward to doing it again next year!”

Loyalty paysThe Windsor Tunnel Duty Free Shop is starting to see a trend they like. Despite a slow start to 2014, sales over the past few months have shown steady growth. Border traffic is very similar to last year’s, but con-sumer confidence, a strengthening US dollar and a successful Loyalty Rewards program are some of the factors they believe have contributed to the recent positive results.

The majority of Windsor Tunnel Duty Free shop’s marketing initiatives are tied directly to its Loyalty Rewards program. In early 2014 the program was revised to truly reward their frequent and loyal custom-ers. Loyalty Members essentially receive credit for every single item they buy. This credit is applied towards future purchases. Additionally, a Loyalty Bonus program was developed in a joint venture with various vendors, offering greater value on certain high-profile products.

“The overall reception to the new and improved Loyalty Rewards program has been very positive,” says Abe Taqtaq, Vice President of Windsor Tunnel Duty Free. “The main reason the program has been so successful is the store’s high percentage of regular repeat customers, the majority of whom visit us from our neighboring US city, Detroit. Our goal is simply to thank and reward them the best way we can.”

The team had to ensure that the cam-paign had proper branding to make it work, and so began with the development of the slogan #found@PBDF. This was used in all online media and in radio commercials. While the radio segments were scripted, they were based on real customers talking about their favorite finds at the store and letting others know why they should visit. A designated space was allocated in the store with the “Found at Peace Bridge Duty Free” logo as a step and repeat. This enabled customers to use the backdrop when taking photos of their favorite finds while still in the store, and then quickly upload them to their favorite social media site. “This was a double-pronged marketing approach,” says Gates. “Customers uploaded to social media with the tag line #found@PBDF while their purchase was still fresh, and this also aided the education process for people not familiar with the store or product assortment, help-ing them become aware of the many unique offerings we have at Peace Bridge Duty Free.”

As another aspect of the promotion, PBDF created its own videos. At the back-drop, PBDF interviewed customers about their finds and purchases, and then com-piled the videos and posted them onto their YouTube channel. “Based on the traffic to our newly created YouTube channel, we are confident we have found the right niche to showcase true testimonials and fabulous finds at Peace Bridge Duty Free,” says Gates.

“These sincere testimonials showed the validity of shopping at Peace Bridge Duty Free, making the promotion very genuine

The big marketing campaign in 2014 at Importations Guay Ltée was the Bacardi and Coke showcase special

Canadian Border Duty Free

The Bacardi and Coke promotion doubled IGL’s sales of Bacardi Superior and tripled the sales of Bacardi Gold

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Marketing Campaign:

The three Canadian border stores in the Niagara region currently face comparable concerns and challenges. For a start, the strong Canadian dollar in

recent years has been less than favorable for Americans who cross the border. Add to that the end of the GST rebate program, where US residents were able to remit any GST payments made in Canada for a refund, along with the hassle of the Secure Border Initiative, and the end result is a long-term reduction in Americans crossing the border.

With this reality, the three border stores in the Niagara Region are working together to capture more of the Canadian car traffic that passes through these border crossings. Peace Bridge Duty Free, Niagara Duty Free and Queenston Lewiston Duty Free have created a joint marketing campaign in order to achieve this.

“It is our belief,” says Bonnie Gates, Marketing Manager at Peace Bridge Duty Free, “that the Canadian duty free industry is well received by Canadians, but generally misunderstood. We are faced with consum-ers who have a desire to shop Duty Free, but are uncertain about their rights.” The three companies agree they get the same common questions from Canadians:

1) Can I purchase on my way into the US? 2) Can I bring my purchase back into

Canada? 3) How much can I purchase?

While these three questions are com-monly encountered within the stores, Jim Foster of Peninsula duty free wonders: “If the people who come into the stores are asking these questions, how many people pass by our doors because they don’t know the answers?”

The joint marketing campaign has two goals. First, to educate Canadians on their duty free rights, specifically by answering the big three questions. Second, to reinforce the public’s perception about great savings for one of the most commonly purchased items at these border crossings, alcohol.

Advertising on trucksAs part of the overall marketing strat-egy, the advertising campaign targeted the Ontario shopper in advance of his or her trip into the US. Aware that approximately

half of Ontario’s population lives in the Greater Toronto Area (GTA) and that many transportation trucks travel between Toronto and the US through one of these crossings, the group decided to pur-chase advertising on the back of some of these trucks.

The three stores wanted a unified deal attractive to both the US and Canadian market, since the trucks would be on both sides of the border. They partnered with Diageo on a promotion of two Crown Royal bottles for $40. Jim Foster says, “Diageo is a world-class corporation and partner who supported our joint marketing venture with enthusiasm and encouragement. They were instrumental in bringing the project to frui-tion with timely collaboration and profes-sionalism.” The ad was placed on the back of 20 different trucks, each no more than five years old. The ads were placed at the start of the busy travel season in early July and are running for a period of six months, until the end of December.

This program is still running and there-fore statistical data is not yet available, but Steve Richardson of Niagara Duty Free feels the joint marketing venture is achieving its goals. “We have accomplished our goal to market to the residents of Ontario as a duty free collective, which we believe is of sig-nificant importance. Joining together with fellow duty free stakeholders in promoting our industry to the residents of Ontario is a win for all involved.

Duty free retailers in the Niagara region teamed up together with Diageo for a marketing campaign that includes an attractive Crown Royal offer

Teaming upWhen the Niagara region duty free stores examined the challenges they were facing, they realized they had a better chance of overcoming them if they joined forces

Niagara

by WENDY MORLEY

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Sault Ste. Marie Duty Free

Sault St. Marie Duty Free has announced that it has built a new store as the result of the Canadian government’s CAD$44 million redevelopment of the Canadian

Customs Plaza. The new store will be located on the bridge plaza just west of where the existing store is located.

Americas Duty Free spoke with the retailer in early October, and at the time an open-

ing date of mid-November 2014 was expected, just in time for the Frontier Duty Free Association conven-tion and exhibition, held in Toronto, Ontario this year from November 16–19. Despite the opening of the duty free store this year, the Canadian Customs Plaza as a whole isn’t expected to be completed until early 2016.

The project as a whole is being managed by St. Mary’s River Bridge Company (SMRBC) through a con-tribution agreement with Transport Canada. The St. Mary’s River International Bridge is the only port of entry for cars and trucks traveling between Canada and the US for a section of the border stretching from Sarnia to Pigeon River, a dis-

tance of 1,300 km. Inter-modal studies have clearly indicated Sault Ste. Marie’s strategic position as a major hub with capacity to ensure the flow of goods from international ports to the US market. For this reason, this project is of major importance for the eco-nomic growth of the Sault Ste. Marie area.

The new plaza infrastructure project at the Sault Ste. Marie International Bridge will result in an anticipated increase in commercial truck traffic arising from Sault Ste. Marie’s multi-modal initia-tive, and a new truck route from High-way 17 (Carmen’s Way) to the current Canadian Plaza.

And the company tells us that the new store is coming at the right time; as the American Dollar continues to strengthen the operator is seeing more and more Amer-icans crossing the border again, visiting Canada and of course purchasing duty free. Currently bestselling categories at Sault Ste. Marie Duty Free include Liquor and Beer, Tobacco, Clothing, Perfumes and Food. Some of the most popular brands are Crown Royal, Absolut, Baileys, Gibsons, Wisers, Grey Goose, Bacardi, Tanqueray, Molson Canadian, Coors Light, Alexander Keith’s, Bud Light, Players, DuMaurier, Export A and Canadian Classics.

Americas Duty Free will, of course, keep readers up to date as the Canadian Customs Plaza project continues throughout 2015 and into 2016.

Good things ahead

With a new store and increasing traffic from the US, Sault Ste. Marie Duty Free is expecting the future to be brightby RYAN WHITE


The story of Lancôme’s Absolue skincare line begins with an unknown woman on an after-noon in Paris in 1965. Under a cloudless blue sky, Armand

Petitjean catches the eye of a woman—a woman with French elegance and natural sophistication that seems effortless. The sight of this woman with her calm con-fidence and obvious modernity would never leave Armand. This indefinable charm would become the very goal of the Absolue brand.

“Absolue has been created for the most demanding women in the world—women that today insist on results that push back the frontiers of the possible even further,” says Paul Connors, Lancôme General Man-ager at L’Oréal Luxe Travel Retail Americas. “Absolue is a philosophy of excellence.”

The second chapter of the Absolue story opens in 1973 when Georges Delbard, one of the greatest rose specialists in the world, creates the Lancôme Rose. Rare and exclu-sive, this exceptional flower is born from a complex hybridization process following meticulous hand pollination. A precious alchemy of a magenta and a mauve rose, the Lancôme Rose has an intense and vibrant fuchsia color. Grown to order in the French region of the Châteaux de la Loire, this rose flowers only once a year and is an inexhaustible source of inspiration for Lancôme Research.

The power of regenerationLancôme has discovered that like the skin, plants too have stem cells, which represent real reservoirs of life and are able to engen-der a whole new plant. While a differenti-ated plant cell only expresses some 20% of its genetic inheritance, a dedifferentiated native cell makes this entire heritage poten-tially accessible, offering an extraordinary potential for regeneration.

Lancôme’s Laboratories are now working on tissues transferred from the Lancôme Rose, called native cells. These are the basis for Lancôme’s 2014 launch, the new Absolue L’Extrait Regenerating Ultimate Elixir-Concentrate. Indeed, the product contains up to two million Lancôme Rose native cells, representing a skincare innova-tion unlike any other.

Extracted from the heart of the rare and resilient Lancôme Rose using an exclusive, state-of-the-art biotechnological process, these native cells are proven to extend their own exceptional properties to enhance skin’s regenerative potential. Absolue L’Extrait helps reveal firmer, more elastic, more radi-ant skin for fascinating beauty.

Thriving in travel retail Connors tells us that Absolue has been per-forming well in the Americas travel retail,

showing a strong growth. “The brand is booming in North America with an incred-ible success amongst Asian consumers,” he explains. “In Northwest doors, Absolue has become one of the main growth contributors to the skin care business.”

With the launch of Absolue L’Extrait Elixir in 2012, Lancôme Travel Retail Ameri-cas began implementing dedicated Absolue spaces in travel retail doors. Indicative of the success of Absolue, the brand now has 34 dedicated spaces in travel retail in the Americas.

A new ritualThe perfect fusion of science and nature—a voluptuous sensory experience and unique regenerative performance—The Absolue line by Lancôme embodies the quintessence of French luxury and beauty.

And now, Lancôme writes a new chapter in the Absolue legend with Absolue L’Extrait Regenerating and Renewing Ultimate Elixir-Concentrate, a precious concentrate whose melt-on texture infuses the skin with a youthful glow. Inspired by the unique treat-ment rituals performed at the Lancôme Institute, “Absolue L’Extrait Regenerating and Renewing Ultimate Elixir-Concentrate” and “Absolue L’Extrait Ultimate Beautifying Lotion” are backed by a sensory experience and sophistication nearly a half-century in the making.

L’Oréal Luxe Travel Retail Americas

The ultimate in

Nearly half a century after Armand Petitjean first created the Absolue cream, Lancôme continues innovating and nourishing Absolue’s luxury facets

French beauty


Fossil Group

Matt Tilley, Vice President, Latin America and Travel Retail at Fossil Group tells Americas Duty Free that the Middle East and Asia

Pacific are two top-performing regions for the company. Sales are doing “extremely well,” he says, on the back of the company’s strong portfolio and the recent openings of a number of shop in shops.

The company also opened a Fossil store with Nuance at Changi Airport, and in keeping with the emerging-market theme, Tilley tells us that the very first Fossil store in Latin America was opened in Albrook Mall in Panama.

The Changi store, which was opened June 7, measures 34 square meters, while the Albrook Mall location, opened the day before on June 6, measures 98 square meters. Tilley says that the reaction to the new locales has been excellent.

“We have received great feedback on both stores and customers have been really excited to experience Fossil’s unique product assort-ment and compelling brand experience,” he explains. “From refurbished vintage props to the famous tin wall, Fossil is meticulous about each and every detail. We focus on our visitors by enriching their experience through thoughtful personal attention and of course our impeccably curated collection of vintage-inspired products.”

Zeroing in on salesIn terms of customers, Fossil is focusing on Russians, Arab and Chinese consumers given these groups’ higher than average spend. “We’re not necessarily focusing on a particular region,” Tilley explains, “but rather taking a global approach. It is extremely important to focus on the passenger profile and to understand their buying habits.”

“The Asian consumer, specifically the mainland Chinese shopper, represents a huge growth opportunity for us, particularly in Swiss-made watches,” Tilley notes. “Fos-sil group has invested significantly in our Swiss-made design capabilities and infra-structure over the past decade and now have a venerable portfolio of Swiss-made brands including Burberry, Emporio Armani and Tory Burch to satisfy global consumer demand for fine Swiss craftsmanship.”

Maximizing opportunities “We are aligning globally with our world-wide regions—LAC, EMEA and APAC—as well as our global partners,” Tilley tells us. “This will allow us to maximize oppor-tunities and concentrate our efforts as a team. We continue to focus on elevat-ing our brands’ image through shop-in- shop initiatives.”

And speaking of making the most of opportunities, 2014 marks Fossil’s 30th anniversary, and the company is celebrat-ing with innovative artist and designer collaborations, in-store events, limited and special edition products, and promotions. Fossil is an American lifestyle brand rooted in authentic, vintage-inspired and classic design,” Tilley says. “We will host events throughout the world to celebrate our brand’s heritage.”

Ever focused on ensuring an exceptional shopping experience for travelers, Tilley notes that the concentration for Fossil’s 30th anniversary celebrations is centered in on limited edition products and the store experience. “The inclusiveness of the Fossil experience, from a friendly welcome to expert advice, it’s the unique approach of providing a timepiece for everyone that fits their style, personality and budget, all with the same exact attention to detail in the design—whether it’s an entry price point or our Fossil Swiss. The sales associates, the product, the lighting, the decor and the whole brand experience is about elevating people’s personal style,” he says.

“It’s the consumers who got us here in the first place,” Tilley concluded. “It’s only right that giving them the best possible travel retail experience is the focus of this year’s celebrations.”

Celebrating the

2014 marks Fossil’s 30th anniversary, and the company is celebrating with new stores in Asia Pacific and Latin America, as well as limited edition product launches

GOODTIMES

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The 102-year old family business has already successfully crossed continents with its color-coded bars a familiar favorite on shelves

from Africa to Asia.Katharina Tyrolt, Global Travel Retail

Manager, reports that 2014 to date has been a good year with a number of new listings in Asia Pacific, in particular, supporting its expansion plans.

“We are with DFS in New Zealand, Japan and Mumbai and we are still growing with Heinemann, which is one of our biggest customers; plus we are in Delhi Duty Free for the first time,” she says.

Looking at the Middle East-Africa region, Ritter Sport is also following the tourist trail with presence at a number of North African airports in Tunisia, Morocco and Egypt.

“Business in this region is relatively stable. In general we’ve seen quite good growth across Europe thanks to the fact that we are a pretty well known German brand; and the Heinemann partnership is also performing well,” notes Tyrolt.

Next year will see the brand break new ground with the Americas in its sights for 2015. She says: “We are talking to several clients in North America as well as Latin and South America.”

As year-end approaches, Tyrolt confirms that the company is on track in Asia Pacific in terms of sales performance with Ritter Sport’s overall global travel retail division recording medium double-digit growth both in sales and volume.

Brand familiarity is a major influencer in the purchase decision and domes-tic presence in over 100 countries has proven to be a firm foundation for travel retail sector growth.

It also has wide demographic appeal, picked up by tourists as well as frequent

travelers, with the age profile ranging from young adults through to customers in their late 50s.

“Packaging is extremely important. The Ritter Sport 100g Tower, for example, show-cases our brand values. It’s colorful, has lots of varieties packed in, and people instantly recognize the colors of the individual bars,” Tyrolt explains.

Three new products were on show at last month’s TFWA WE exhibition in Cannes, and are scheduled for global rollout from April 1, 2015.

“They are all based on our standard product and what we do is develop new and travel retail exclusive packaging. We have a 160g single or 320g double pack Rit-ter Choco Cubes tin, which is our praline product, and the only product not a regu-lar tablet. These contain 20 and 40 pieces respectively,” she explains.

“We also have a 65g Ritter Sport Tower, the ‘baby brother’ to the 100g option,” she adds.

In addition to perennial demand for gifting and sharing options, one new trend that Ritter Sport is also planning to exploit in the travel retail domain is consumer interest in seasonally packaged products, as she explains: “We haven’t had this in travel retail before but we do pick up on it domestically in Germany.

“However, rather than look at Christmas, Easter, Chinese New Year and Eid specific packaging, for example, we focus more on the time of year as in Spring, Summer and Winter, so we will probably do that in travel retail as well.”

She adds: “This with also be supported with promotional activations. We ran some extremely successful consumer promo-tions with our partners this year, with tastings and samplings. We are also now building tailor-made POS units for our special customers.”

Ritter Sport

Double pack Ritter Choco Cubes tin

New World ambitions for Old World favoriteColorful German chocolate brand, Ritter Sport, is aiming big in 2015 with plans to take its travel retail range to the Americas

The Ritter Sport 100g Tower showcases the company’s brand values

by CLAIRE MALCOLM

THE SHADE


Opticaset

Sunglass fans are spoilt for choice when it comes to shopping for their next stylish pair of shades. This is especially true in travel retail where the fashion acces-

sories are stacked in close quarters alongside competitor brands. Hence Opticaset is on a mission to raise awareness of its Toxic range of sunglasses, which is sold through the channel.

Only recently, the company demon-strated its bullish ambition by increasing its outdoor advertising efforts aimed at captur-ing the Canadian market. In addition, it is ramping up its sales force in North America to help lure potential customers. On top of all this, Toxic will soon boast technological features that will undoubtedly help the col-lection to stand out from the crowd.

“Right now, we are working on a cut-ting edge technology for our sunglasses including a Bluetooth device attached to the temples that are soon to be put to market,” said David Ifrah, President, Opticaset.

The new push is the result of over two decades’ experience in the business. Founded in 1982 in Canada, Opticaset is the exclusive distributor for Toxic and Fly

sunglasses, Visiniti readers and optical accessories. The hallmark of all of the collec-tions is novelty designs teamed with quality workmanship at competitive prices. As well as being distributed through optometrist’s outlets all around North America, Opticaset took the Toxic range into travel retail in 2011.

“Sunglasses are good market for travel retail as they are always in demand, espe-cially by those traveling from North Amer-ica to the South,” said Ifrah. “Shoppers tend to buy new models before heading to their destination.”

The brand is now available at Montréal–Pierre Elliott Trudeau International Airport in Canada and at a number of duty free land border stores with hopes to expand its retail market in the next few years.

“Naturally, sunglasses are tied to summer weather, but it’s interesting to note the prod-uct does not follow a similar cycle to sum-mer clothing,” said Ifrah. “The importance of protecting the eyesight along with making a fashion statement by wearing sunglasses

as an accessory makes it a profitable market all year long.”

Three styles of sunglasses are trending at the moment.

“The first that’s selling well is the way-farer shapes with a speckled frame, such as our model TX-675,” he said. “The second sunglass trend is for lens effects like mir-rored shades, which are available in the Toxic range. Aviator styles are selling the best for men.”

While the designs are being updated all the time to maximize the collection’s appeal, quality remains at the core of the offer.

“The quality of our products is very important for us. In fact, it is essential for strengthening the brand,” said Ifrah. “Our avant-garde style is always ahead on fashion crazes, making Toxic the go-to brand for the latest trends. Furthermore, the price architecture on Toxic’s assortment makes the product suitable for different markets.”

Toxic models are offered in acetate and metal, providing a range of price tags for consumers. To tie in with its forward think-ing approach to design, Opticaset is plan-ning on launching an online campaign.

“We hope this will help the brand to move forward internationally,” said Ifrah. “Toxic is always improving.”

steps out of

By incorporating advanced technology into its sunglasses and building awareness of the brand on a grand scale, Opticaset is looking forward to a brighter future

OPTICASET

by FAYE BARTLE

Opticaset is working on a Bluetooth device that will be attached to the temples of its sunglasses

There are over 50 F. Farhat eyewear boutiques in Quebec


ALFA Brands

ALFA Brands is heading into this year’s FDFA conven-tion having experienced a year-over-year uplift in sales during the first three quar-

ters of this year. Amy Hildreth, Operations Manager at ALFA Brands, tells Americas Duty Free that the sales increases have largely been in the company’s cigar, wine and confectionery businesses.

Given the increasing popularity of these categories, Hildreth notes that ALFA Brands has upped activity a notch when it comes to new products and distribution. “We have introduced new items and line exten-sions,” she says. “We have also increased our distribution in some of the chain stores in North America.”

New launches include Rocky Patel cigars and Ashton Cigars in DFA airport stores. ALFA Brands is also about to conclude an additional listing with Rocky Patel in the near future that is “very high profile,”

according to Hildreth. While she can’t say much more about it, she tells us that the development will be announced in the near future.

Latest and greatestAt this year’s FDFA convention and trade show, ALFA Brands will have a suite full of new products to showcase across categories. In terms of the popular wine category, the company will be showing the new Memoirs Vidal Icewine from Pillitteri Estates Winery. As Hildreth explains, the product is a very special addition to duty free.

“You may recall that four teams of stu-dents from Niagara College’s Wine Business Management, Winemaking & Viticulture, Sales & Marketing and Graphic Design courses competed to design the best Icewine label for Pillitteri Estates Winery, which would appear on a Pillitteri wine and be sold as a duty free exclusive product,” Hildreth says. “Pillitteri Estates Winery along with

More toALFA Brands visits Toronto for the FDFA show with a range of new products across categories that are set to wow operators and consumers alike

exploreMemoir Vidal Icewine comes with a mini Pillitteri Sharpie around the neck so customers can create their own message on the bottle

Torie & Howard is adding to its line of organic, kosher and non-GMO hard candy with a lusciously tart and berry sweet Meyer Lemon & Raspberry flavor

by RYAN WHITE


Niagara Duty Free recently announced that the Memoir and Quercus brands tied to both win the Wine Branding Challenge in March of 2014.”

While in previous years the students focused on the Chinese export market as the primary sales channel, this year the focus was solely on the duty free chan-nel. Each team created and developed an Icewine brand and package, including a market-ready product for the specialized duty free travel retail marketplace. Expert knowledge and information was provided to the students by Michael Gruyich and Steve Richardson of Niagara Duty Free and President of ALFA Brands Franco Gabriele. Students even had the opportunity to per-form store research and had access to duty free industry sales figures.

“Memoir Vidal Icewine is now available and ready to ship,” says Hildreth, “and we’ll be featuring it in our suite this year at the FDFA show. It is truly unique and perfect for duty free. It comes with a mini Pillitteri Sharpie around the neck so customers can create their own message on the bottle. This VQA Vidal Icewine is being offered to operators at a special introductory price.”

Also in wine, ALFA Brands will be show-casing two new gift packs from Burnt Ship Bay Estates Winery. The first is a two-pack of Vidal Icewine (200 ml each) and the second is a six-pack of the same Vidal Icewine (200 ml each). The six-pack is priced as a “Buy 5, get 1 free,” as well as being offered at a special introductory price.

Sweet dealsALFA Brands has a long list of new confec-tionery products ready for duty free store shelves. Popular confectionery brand Jelly Belly has introduced new Mickey and Min-nie tins, guaranteed to delight Disney and Jelly Belly fans alike. Each character’s tin has its own special mix of Jelly Belly jelly beans. Also new is the 1.5 oz Hello Kitty Jelly Belly Bean Tin. Both products will be featured at the FDFA convention.

Draft beer fans will enjoy the Jelly Belly Draft Beer Beans Grab & Go bag, perfect for parties, or the Draft Beer Can Tin, which looks like the real deal and is filled with the real taste of a freshly poured beer. Inside are five sample bags of Draft Beer Beans. Also new from Jelly Belly is the Mr. Jelly Belly Plush Toy, now available in a bigger size; the Jewel Collection Classic Candy Jar; and the 49 Flavors Classic Candy Jar.

For those who want a way to serve their Jelly Belly jelly beans, at the FDFA conven-tion ALFA Brands will be featuring the new Bouncing Beans Dispenser. Customers will love the mesmerizing action and delicious Jelly Belly jelly beans in the new dispenser. The Bouncing Beans Dispenser has a fun and stackable gift box, like all Jelly Belly bean machines, and includes a 1 oz sample bag of the assorted, kid-friendly flavors.

Other Jelly Belly releases include the Disney Ultra Gift Box, designed to display beautifully with the family of Jelly Belly Disney Classic gift bags, and the Jumbo Box, which displays horizontally or vertically

and features a jumbo-sized serving of Jelly Belly jelly beans.

Another confectionery brand repre-sented by ALFA Brands is Torie & Howard. This year the company is adding to its line of organic, kosher and non-GMO hard candy with a lusciously tart and berry sweet Meyer Lemon & Raspberry flavor. It will be available for shipment in early fall and is packaged in the company’s signature colorful 2-ounce recyclable steel tins. The new flavor is light, bright and clean with the right balance of sweet and sour thanks to the slightly sweeter and somewhat floral tartness of the Meyer lemons and the fresh sweetness of the berries.

ALFA Brands is also introducing a new product from Pretzel Pete called Pretzel Budz. They are mini pretzel balls that are available in two flavors: Cheddar Cheese and Cinnamon Sugar. They are packaged in a resealable bag that can stand up on a shelf or be pegged. “The packaging and actual product are very different from the Pretzel Pete Pretzel Nuggets, which are available in Cheddar & Ale, Sour Cream & Habanero, Garlic & Cheese and Honey Mustard flavors,” notes Hildreth.

“In addition to the above products, we will also be introducing Nicolites e-ciga-rettes, e-cigars and accessories”. Hildreth concludes: “We’re very excited to return to our 29th FDFA convention in Toronto and let operators and the industry at large see all of the new brands, as well as the brand extensions, that we’ve been working hard on over the last year.”

ALFA Brands will be showcasing two new gift packs from Burnt Ship Bay Estates Winery at this year’s FDFA, both featuring Vidal Icewine

From left: Altan Duty Free’s Janice Beagle, ALFA Brands’ Amy Hildreth, Operations Manager and President, Franco Gabriele at last year’s FDFA show


Cross

More and more passen-gers can now browse the internet, look up prices and plan pur-chases. This activity is

common across regions, but travelers from countries with high taxes and duties, such as Brazil or Argentina, often plan their shopping in this way. It is even common for passengers to look up prices while they are in the stores.

In the Americas, most duty free com-parison shopping uses US merchants as a benchmark. Consumers scan bar codes on their smartphones and right away check the lowest prices available from merchants where they can get the products. It can be from a brick and mortar store in the city to which the passenger is traveling or it can be from online sites like Amazon and eBay where the consumer can get goods delivered for little or no shipping fee. Airport stores compete more and more with non-airport retailers. This mainly applies to products where there is a high degree of involvement and contemplation in the purchasing behav-ior; with less expensive items and impulse buys, passengers will usually not bother comparing prices or delay a purchase for few dollars’ difference.

Electronic devices are also putting more pressure on the travel retail industry. We already know the effects of “showrooming” in the local markets where consumer see/test products in brick and mortar stores and then buy them online, often at a cheaper price. So for products where there is no immediate need, such as for one’s own consumption as opposed to a last-minute

gift, passengers might delay their purchase if the product is sold significantly cheaper somewhere else. At the same time, this situation reinforces the fact that airport prices are often not competitive in countries such as the US. Higher prices are not the only reason for not buying; size could be another, especially in categories like luggage or large bags.

Prestigious brands and US passengersSome passengers buy in duty free stores because they can get access to brands not available in their local market. Passengers are also guaranteed that the products are legitimate and not counterfeited. For example, this is very true for several Asian consumers in that they like seeing presti-gious brands. However, for many passen-gers with no predisposition to buy or even to enter duty free shops, seeing a multitude of beautiful shop in shops and boutiques may actually turn them off as it may convey an image that everything is very upscale and expensive, especially if passengers have to make an effort to enter the stores. Non-walkthrough stores have to find ways of giving a perception that they carry many products at different price points, and not only luxury items; otherwise this will greatly limit their audience base and store penetration.

I n m a n y mature markets such as the US or

Europe, many passengers already have a view of duty free stores as selling overpriced merchandise. It is then even more important to attract those skeptical consumers and convince then of the benefits of buying at the airport. Is there an opportunity to change the US consumer mindset? Because the US is a low duty and sales tax country, anybody living in the US can already buy products, often with a discount, from both online and brick and mortar stores.

The US will remain a major duty free country because of its foreign tourists, especially Latin Americans and Asians. A suggestion to sell to US consumers is to offer products that passengers cannot easily put a price on. In front of the store is a good way to do it, as it may increase foot traffic and avoid the store being perceived right away as overpriced. Impulse accessories or con-fectionery usually help with that objective.

Buying in duty free stores has often been led by savings, but to sell to those skeptical consumers where price savings have no added value, having more impulse buy items or duty free exclusive items is good a way to engage them.

For comments, please join the Travel Retail Forum Group on LinkedIn at the following address: http://tinyurl.com/mjytxkf

Smarter and more skeptical shoppersNowadays, more shoppers are skeptical about duty free purchases, especially the US consumerby DAVID FERREIRA, Head of Global Travel Retail, Cross

David Ferreira, Head of Global Travel Retail, Cross

Join us for the 2015 Duty Free Show of the Americas — your chance to connect with more than 160 exhibitors showcasing thousands of brands to more than 300 duty free store companies from over 60 countries!

Conduct business on the tradeshow floor, and enjoy additional networking opportunities provided by IAADFS social events. Come see why attendees and exhibitors consistently say that our show is “the” place to do business.

The most important week of the year for your business

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

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“ We made very valuable contacts in the industry, from buyers to travel retail agents.”

“ The most promising part was the new business generated, as well as contacts to follow up on.”

“ We got great response from travel retail operators in the Americas.“

IAADFS_0240714_2015_210x297-ADFTR.indd 1 9/9/14 4:11 PM


Citizen

If there’s one thing renowned watch brand Citizen has in spades, it’s con-fidence. These days, the watch manu-facturer is vying to grab a larger share in the lucrative TR market as it holds

its own against the competition, including Swiss brands with a strong foothold.

“We have the product and the assets to make our brand stand out and go toe to toe with the Swiss brands that seem to have a lock on this part of travel retail,” says Douglas B. Irwin, Vice President Sales, Canada, Citizen.

The aim for 2015 is to build greater brand presence in the TR channel as Citizen seg-ments its line into Citizen Quartz, Citizen Eco-Drive and Citizen Drive. The company is focusing on its display presentation, branded showcases and shop-in-shops, as well as strong and consistent messaging with consumers.

“It is very important that the consumer have the same brand experience wherever they purchase a Citizen watch,” notes Irwin. “So keeping our TR dealers current and in step with our programs is very important. The use of current brand ambassador images (including Grammy award-winning Kelly Clarkson) and our new Better Starts Now campaign materials will help insure that there is consistency across all our channels of distribution.”

At the FDFA convention this November, Citizen will present key items and collec-tions tied to their Fall 2014 advertising cam-paign. Delegates will have the opportunity to see the Spring 2015 collections and sup-porting materials firsthand. They will also have an advance buying opportunity and will be briefed on the comprehensive brand support Citizen offers its authorized dealers.

Citizen will demonstrate its radio con-trolled and satellite watches—timepieces synchronized to the atomic clock for 100% accuracy. While Irwin understands that watches are fashion accessories (or as he calls it, “jewelry that works”), frontline staff need to understand the high-tech features of a watch to be able to relay this information to the customer, he stresses. To help them, Citizen put together a PK tool called Every-thing You Need To Know that describes how the watches work.

It’s not to say it’s all about mechanics. As Irwin explains, “No matter what it does and how it works, a watch is an adornment. It has to say to the consumer, ‘pick me up.’

It has to make the wearer feel special.” To ensure they appeal to the female consumer, Citizen is putting a big focus on the styling and design of ladies watches. Some of this will be done with styling developed for the North American market, and some by developing global ladies watches designated as the “Citizen L Collection,” which will be sold and marketed worldwide.

In Canadian travel retail, Citizen watches are currently available at most land-border duty free stores, but the aim is to expand the brand into additional shops in 2015. In particular, Citizen watches are proving an appealing purchasing option for Asian tourists visiting the country.

“Citizen is global brand and Asia is a big market for Citizen,” says Irwin. “Asian trav-elers aren’t just looking for luxury brands; they are looking for brands with styling that they know can be the same or different than what they have at home and that they can buy in a Canadian travel retail environ-ment at a great price. Citizen can address that customer.”

The aim for next year is to build greater brand presence in the TR channel as Citizen segments its line into Citizen Quartz, Citizen Eco-Drive and Citizen Drive

A WATCH for each CITIZENCitizen edges further into the TR market, delivering a catchy alternative to pricey luxury watchesby HIBAH NOOR

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Sweet and spicyBefore Patrón, tequila was something most people tried to swallow as quickly as possible, meanwhile readying themselves with salt and lime in order to avoid the taste. Patrón changed all that. It revolutionized the tequila category and singlehandedly changed the concept of the liquid, opening the door for many other premium and super-premium tequila brands to make their way into the market. As Patrón revolutionized the tequila industry and perhaps even the liquor industry, it is now in the process of revolutionizing the liqueur industry.

A short time ago Patrón created its Patrón Café XO, a very well received and delicious tequila coffee liqueur, but a coffee liqueur is not completely new, regardless of its tequila base. Now, however, the company has brought the concept to another revolutionary level with Patrón XO Café Incendio. Sweet and spicy are tastes traditionally combined in Mexican cuisine, as are the flavors of chile and chocolate. These two taste concepts and flavors are now combined in Patrón XO Café Incendio.

“Patrón XO Café Incendio is an incredibly versatile spirit. Not only does it create interesting and inventive cocktails, just like the rest of the Patrón XO Café line it’s the perfect choice for celebratory occasions that call for an ultra-premium shot,” says Ed Brown, President and CEO at Patrón Spirits. “No other brand in the crowded shot market compares to the taste and quality of Patrón XO Café, and no other liqueur comes close to the powerfully spicy hot flavor of Patrón XO Café Incendio.”

This new liqueur will lend itself to an unknown number of interesting new cocktails. At TFWA WE in Cannes recently, the Patrón bartender invented an entirely new creation made with Patrón XO Café Incendio and tomato juice, inventing an exciting new variation of the Bloody Mary. Who knows what will come next?

Liquor News

Despite its Polish pedigree, this famous vodka should feel very familiar to Canadians with the bison on its label and its prairie-grass feel. Rémy Cointreau has been appointed by Roust for Americas duty free distribution for Żubrówka, or “ZU,” as it’s referred to in the US and Canada, and the company is determined to make it as popular in this region as it is elsewhere.

Żubrówka, a dry, select-grain vodka and one of the fastest grow-ing vodka brands in the world, is easily recognized by its pale green color and the single blade of grass within, hand picked near the Białowieża forest, the bison’s Polish home. The singular blade of grass inside the bottle is testa-ment to the hand-picked process of collecting the wild grass, which contributes flavors of lavender, thyme, vanilla and almond and an earthy complexity.

Żubrówka is a leading vodka brand, not only in Poland but also in UK, France and Japan, and now global travel retail. Activations have featured the bison to drive con-sumer engagement and increase

The Żubrówka bison should soon be seen in Canadian border stores with activations similar to this one

Patrón’s new Café XO Incendio

penetration. Andrew Notcutt, Russian Standard’s Global Mar-keting Director for Global Travel Retail, says much of the same can be expected for travel retail in Canada and the US, so you can comfortably bet that you will see some bison appearing in border stores in the region at some point in the near future.

Bison on the border

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Client: Grey GooseJob Name: Duty Free & Travel Retailing Magazine FPC AdFile Name: GG_DFTRM_FPC_Ad_A4File Size: A4 (W210mm x H297mm)

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38 AMERICAS DUTY FREE & TRAVEL RETAILING

Liquor News

Pulling out all the stopsLauder’s has had two new releases this year, Lauder’s Ruby Cask Finish and Lauder’s Oloroso Cask Finish. The Ruby Cask Finish has a slightly red-dish hue which it has taken from its time maturing in seasoned Ruby Port casks carefully selected by the master blender. The malt and grain whiskies that make up the blend are initially aged in charred bourbon casks. These individual whiskies are combined to form the blend and then returned for a second time to mature further in Ruby Port casks.

The new Lauder’s Oloroso Cask Finish draws its amber hue and sweet palate from its time maturing in seasoned Oloroso Sherry casks. The malt and grain whiskies that make up the blend are initially aged in charred bourbon casks. These individual whiskies are combined to form the blend and then returned for a second time to mature further in Oloroso sherry casks.

And although these new releases should satisfy fans of the brands for the time being, Scott tells us that MacDuff has much more in the pipeline: “We’ll be focusing on regionally targeted promotions for these products and our other new releases, such as the new Grand Macnish 6 Cask Edition,” he explains. “We’re also currently developing a third Lauder’s expression, called Madiera, which will be a big focus next year. Finally, we expect to have gift boxes for all three of these new Lauder’s expressions next year as well. Needless to say, it’s a busy time, but well worth it when you see the finished product.”

A tip of the bowling hatOverall business for Broker’s has been extremely good in 2014. In the com-pany’s 16 years of existence each year’s sales have only gone up, and this will be another record year. In fact, the company’s sales have increased over 30% every year for the past five. And Broker’s has just won some significant listings, both on- and off-trade.

Broker’s gin entered the Canadian domestic market when it was listed with Ontario’s LCBO approximately 12 years ago with a limited order that quickly sold out. In fact the company’s biggest prob-lem is keeping it on domestic shelves.

The gin was introduced to the Cana-dian duty free market about three or four years ago. Within a couple of months it had 100% distribution within the Ontario land border stores. Since then, Broker’s has become a popular item in the border stores in BC and has made inroads into the larger land border stores in Quebec. The company has held some promo-tional events in that time. Andy Dawson, co-owner of the brand with brother Mar-tin, came to Canada to do staff training and tastings. Broker’s, whose symbol is a bowler hat, also offered a gift with purchase of a pour spout with a bowler hat around it.

Recently, gin has become much more popular with the 25-to-40 age group throughout the world. According to many spirits experts, it is the one to watch this year. The Dawson brothers expect a very good holiday season.

Broker’s gin made a splash as soon as it arrived in Canada, quickly moving up the ranks to become the bestselling gin outside the major large liquor companies

Lauder’s Ruby Cask and Oloroso Cask, both new to travel retail, will soon be joined by Lauder’s Madiera Cask

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Bacardi

At TFWA WE in Cannes this October, Bacardi released its Strategic Intention for Cat-egory Growth. Mike Birch, Bacardi’s Managing Director

of Global Travel Retail, led a session discuss-ing Bacardi’s positioning in each liquor category and the position of the categories themselves in overall liquor sales and within travel retail. Birch described Bacardi as a “sleeping giant” in the whisky category, with a significant aged inventory, strong brands and big ambition.

The second stage of luxuryThe company’s considerable research over the past two years has shown that shoppers are moving into the “second stage of luxury,” in their choices of Scotch whisky, seeking lesser-known but high-quality brands, oth-erwise known as “discovery malts.” Accord-ing to Birch, “There are three drivers that these second stage luxury shoppers need: Age statements, assured quality standards and engaging brand stories.”

Bacardi is looking to engage the con-sumer in this second stage of luxury with a series of actions specifically targeted to them; the company’s portfolio and access to aged whiskies puts them in a unique posi-tion to do so. The plan has three aspects. First, the company will activate permanent merchandising with its new activation, The John Dewar & Sons Fine Whisky Empo-rium. The emporium will display a selec-tion of malts from the John Dewar family. Second, Bacardi will launch a number of new age statements from 15 to 30 years, and

“additional craftsmanship” in 12 years. These malts will be launched through the brands Aberfeldy, Glen Deveron, Aultmore, Crai-gellachie and Royal Brackla. The third aspect of Bacardi’s plan is to engage shoppers and drive advocacy through tastings focusing on different age statements, which the company believes will translate into a conversion to a higher age statement.

A strong portfolioBacardi’s five Scotch whisky brands have unique characteristics that make them especially attractive in all areas of travel retail, where the company can educate and engage the shopper, sharing the unique personality and telling engaging stories related to each brand. Birch says, “The John Dewar & Sons Fine Whisky Emporium is a prime example of how we can bring the brands and consumer together in a new way with an experience specifically tailored to consumer needs.”

Dewar’s, the best known of Bacardi’s brands, is the world’s most awarded blended Scotch whisky. It was first distilled in 1846 and has been a favorite of British royalty since 1893.

Aberfeldy, “the Golden Dram,” is sourced from a gold-rich water source, and activations include serving it with a pipette of water from the actual water source. It offers a travel retail exclusive 18-year-old.

Glen Deveron has recently been awarded multiple awards including best global travel retail launch. Bacardi expects this brand to “trade up mainstream malt shoppers with great taste, great price and guaranteed age statements via its GTR exclusivity messaging

for shoppers looking for something different from mainstream malts.”

Craigellachie is a strong-tasting, sul-phury whisky, appealing to those who like to challenge their taste buds. It has a 19-year-old travel retail exclusive.

Aultmore, awarded Top Class status from Scotland, comes from a foggy and mysterious place and offers a travel-retail exclusive 21-year-old. Bacardi has just announced that this rare whisky will be offered exclusively with World Duty Free Group for a period of one year.

William Lawsons is the fastest-growing Scotch whisky brand in the world.

With this robust portfolio along with strong management and a clear vision, Bacardi will undoubtedly make a big impact on the whisky industry in the coming years.

Bacardi has just announced a one-year exclusive with World Duty Free Group for its rare Aultmore brand

Next level Bacardi has revealed its hand, offering insight into its plans to make a big impact on the whisky category

Members of the travel retail press were treated to a guided whisky tasting at the Bacardi booth, TFWA WE in Cannes

Some tastings of Aberfeldy 18-year-old will include a pipette of water taken from the whisky’s source


TFWA WE Review Snapshots of TFWA WE 2014 courtesy of TFWA

TFWA celebrates 30 YEARS AND continues to growA record number of attendees flock to Cannes for TFWA’s 30th World Exhibition

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are necessary to ensure that TFWA World Exhibition & Conference continues to serve the industry and its members.”

A total of 6,701 visitors from 3,105 com-panies attended the event, which ran from Sunday 26 to Friday October 31, compared with 6,303 visitors (+6%) from 2,917 com-panies (+6%) last year.

Of the total, 2,132 people (32%) are “key buyers”: duty free & travel retail operators and landlords of airports, airlines, ferry, cruise, border and downtown concerns.

Adding agents and distributors to this figure produces a total of 4,511 influential trade executives from 1,750 companies.

These trade visitors had come to do busi-ness with the 471 exhibiting companies, 45 of them new or returning after an absence, showcasing thousands of products.

A record 1,351 delegates (+36%) attended the Conference on Monday 27 and heard excellent presentations from Gen. Colin Powell, USA (Ret.) 65th US Secretary of State, Alexandre de Juniac, Chairman & CEO, Air France-KLM and Erik Juul-Mortensen.

The Market Watch: Latin America work-shop attracted 135 early-birds, 75 concerned individuals convened to discuss the threat of counterfeiting to the luxury goods indus-try and 167 attended the Airline & Retail: Inflight Focus workshop.

The social events made networking a pleasure and, in some cases, raised vital funds for the charities supported by TFWA Care. The Charity Run on Sunday 26 entered by 152 sporty individuals raised €3,700 (US$4,646); the Golf and Petanque tournaments were oversubscribed and hotly contested.

Over 1,620 guests, plus many of the delegates occupying rooms at the Carlton Hotel, attended the glamorous Welcoming Cocktail on Sunday with celebratory fire-works courtesy of the City of Cannes. The Scene after-hours venue was packed every evening with energetic dancing and plenty of socialising.

Le Premium Evening at Port Canto on Thursday 30 provided a suitably glittering finale to a fabulous week with a live concert by Chic fronted by Nile Rodgers and dinner created by 3* Michelin chef Regis Marcon.

As the doors close on the 30th TFWA World Exhibition & Conference in the Palais des Festivals et des Congrès in Cannes, TFWA reports that

once again visitor numbers have exceeded expectations, beating attendance at every other event in the Association’s history.

“We are extremely satisfied with the whole event again this year,” comments Erik Juul-Mortensen, TFWA President. “So many of the stands in the exhibition have been outstanding, the content of the conference and workshops was fascinating and instructive, the general ambience has been very positive and the sun has shone done upon us all week.

“The excellent visitor figures demonstrate that the duty free & travel retail industry is flourishing which, I hope, justifies my optimism that we will achieve impressive business development in the coming years and, hopefully, another ten-fold increase in global sales over the next three decades.

“We will, as always, analyze every aspect of the event and make any changes which

TFWA WE Review

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ALL ABOUT


Q: Where were you born and raised?A: I was born and raised in Ottawa, Ontario, Canada.

Q: If you attended post-secondary school, what did you study? A: I studied History and Political Science at Laurentian University.

Q: Are you married? Do you have children? A: Yes I’m married to David Greenfield and we have one son who is six years old, James (Jamie) Greenfield.

Q: What is your favorite movie? A: Gone with the Wind.

Q: What is the last book you read? A: Listen to the Squawking Chicken, by Elaine Lui.

Q: What would you choose as your last meal?A: Beef Wellington and mashed potatoes with crème brulée for dessert.

Q: Your favourite drink?A: Pinot Grigio.

Q: Do you have a passion in your life (or more than one)? What? A: My family, interior design, dining out and cooking.

Q: Do you have a pet (or more than one)? If so, what animal and name? A: We have a dog named Otis and a cat named Lilly.

Q: Do you prefer country or city? A: City.

Q: What is your favourite place to vacation? A: Costa Rica.

Q: What’s the first thing you do in a new place? A: If it’s a hot location I go to the beach. If it’s a city, I immediately go shopping.

Q: If you could choose any place in the world to live, where would it be? A: New York City.

Q: Which living person do you most admire? A: Hillary Clinton.

Q: Which historical figure do you most admire? A: Helen Keller.

Q: Where and when were you happiest in your life? A: Every time I am home with my family.

Q: What in the world would you most like to change? A: Gender discrimination.

Q: What about yourself would you most like to change? A: Worrying about everything.

Q: What is the most important piece of advice anyone ever gave you? A: Work hard and your dreams will come true.

Q: What is something about you that most people would find surprising? A: I have won a lot of contests in my lifetime. True story.

Laurie Karson, Executive Director, Frontier Duty Free Association

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