AMERICAS DUTY FREE & TRAVEL RETAILING

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IAADFS 2013

p. 44 wayfinding p. 82 vodkasupplement p. 161

APRIL 2013 VOL 23, NO 1

LATAM p. 24Grupo Wisas

Ingls y espaol

6 THE AMERICAS DUTY FREE & TRAVEL RETAILING APRIL 2013

Letter from the Editor

The Americas Duty Free & Travel Retailing

(ISSN 0962-0699) is published four times a year

April, June/July, October, November/ December)

by Global Marketing Company Ltd., 26 Pearl Street,

Mississauga, Ontario L5M 1X2 Canada. It is

distributed throughout Central America, South

America, the United States, Canada, U.S. Virgin

Islands, U.S. Pacific islands and the islands in the

Caribbean.

Subscriptions: $200 for one year. Art and photographs

will not be returned unless accompanied by return

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not necessarily reflect the views and opinions of the

publisher or editor. April 2013, Vol. 23, No. 1. Printed

in Canada. All rights reserved. Nothing may be

reprinted in whole or in part without written

permission from the publisher. 2013 Global

Marketing Company Ltd.

The Americas Duty Free & Travel Retailing

26 Pearl Street

Mississauga, Ontario L5M 1X2 Canada

Tel: 1 905 821 3344; Fax: 1 905 821 2777

www.dutyfreemagazine.ca

PUBLISHER

Aijaz Khan

[email protected]

EDITORIAL DEPARTMENT

EDITOR

Hibah Noor

[email protected]

CONCESSIONS, LIQUOR & TOBACCO EDITOR

Ryan White

[email protected]

ASSOCIATE EDITOR

Melissa Silva

[email protected]

ART DIRECTOR

Patrick Balanquit

[email protected]

CONTRIBUTORS

Andrew Brooks

Diane Tierney

ADVERTISING SALES

ADVERTISING & MARKETING MANAGER

Kim Carrera

[email protected]

CIRCULATION & SUBSCRIPTION MANAGER

Deepa J

[email protected]

fter only four short years report-ing on the duty free industry,Im still learning every day.There is, though, one thing thatIm confident to say Ive gleaned

from speaking to innumerable industry vet-erans across the Americas, Asia and the Mid-dle East/North Africa: Theres never a short-age of opportunities out there for those whotruly believe they can make a difference andadd value.

In the early twentieth century, Britishphilosopher James Allen put it as succinctlyas anyone else to come before or after: Dreamlofty dreams, and as you dream, so shall youbecome.

In an interview with Mohamed Mannahon page 74, I asked about the key to his suc-cess and his answer was audacity. Forty-two years ago when he and Atef Mannahstarted Grupo La Petisquera, I doubt manywould have believed the company wouldreach the level of success that it now enjoys.Mohamed Mannah had the audacity to dreamit, though, and its clear that he believes thisis a major reason for his companys success.

Another operator that has been dreamingbig is Grupo Wisa, having lately made sig-nificant inroads into the South Americanduty free market. Vice President CorporateCono Sur Marcelo Montico tells AmericasDuty Free on page 28 that in five years he seesGrupo Wisa with stores straight from Mex-ico down to Argentina and in all points in

between. Given Grupo Wisas stunning suc-cesses to date, were inclined to believe him.

Suppliers, too, are daring to think out-side the box. Diageo GTME has put a hugeinvestment behind The Explorers Club Col-lection, with Managing Director RolandAbella telling us in Cannes last year that hehas faith in the channel and in the value ofthe product. You can read more about the Col-lection on page 206. Brown-Formans Sina-tra Select is another great example of a prod-uct that breaks all moulds. Sure, there havebeen celebrity tie-ins in duty free in the past,but the coming together of two Americanicons like Frank Sinatra and Jack Daniels isa rare occurrence indeed. You can read aboutthis match made in heaven on page 200.

This issue is full of dreamers that are mak-ing it happen in travel retailmore of themthan I have space to mention here. Were veryproud of our 2013 IAADFS issue and we feelits an apt reflection of the success the indus-try in the region is enjoying at the moment.I urge you to have a read and, more impor-tantly, walk the floor to search out the peo-ple and products we discuss herein. Im look-ing forward to finding out what inspires youto dream big this year in Orlando.

Kind regards,

Ryan WhiteLiquor, Concessions and Tobacco [email protected]

AMaking our own opportunities

www.dubaaidutyfree.com

Wonderful fragrancesCollectaable cosmeticsExquisite jewelleryOne way to have it all


Letter from the Editor

l cabo de cuatro aos repor-tando para la industria dutyfree, sigo aprendiendo cada da.Sin embargo, hay algo que mesiento confiado en decir, luego

de hablar con innumerables veteranos de laindustria en las Amricas, Asia y el OrienteMedio/Africa del Norte: nunca habr caren-cia de oportunidades para quienes creen real-mente que pueden marcar una diferencia yaadir valor.

A principios del siglo XX, el filsofobritnico James Allen lo expres de forma tansucinta como cualquiera que lo hubiera dichoantes o despus: Suea en grande, pues te con-vertirs en lo que suees.

En una entrevista concedida por MohamedMannah, que podrn leer en la pgina 74, lepregunto cul es la clave de su xito, y surespuesta es: Audacia. Hace cuarenta y dosaos, cuando l y Atef Mannah fundaron elGrupo La Petisquera, dudo que muchos crey-eran que la compaa llegara al nivel de xitode que goza actualmente. Mohamed Mannahtuvo la audacia de soarlo, y est claro que cree

que es una razn importante para el xito desu compaa.

Otro operador que ha soado en grandees Grupo Wisa, el cual ha materializadorecientemente incursiones significativas en elmercado duty free suramericano. MarceloMontico, Vicepresidente Corporativo parael Cono Sur, le asegura a Americas Duty Free(pgina 28) que dentro de cinco aos GrupoWisa tendr tiendas desde Mxico hastaArgentina y en todos los puntos interme-dios. Dados los sorprendentes xitos deGrupo Wisa hasta la fecha, nos inclinamos acreerle.

Los suministradores tambin estn dejandolos caminos trillados por nuevos senderos.Diageo GTME ha realizado una enorme inver-sin en The Explorers Club Collection. RolandAbella, su Director Gerente, nos dijo el aopasado en Cannes que tiene fe en el canal yen el valor del producto. Encontrarn msdetalles sobre la Coleccin en la pgina 206.Por su parte, Sinatra Select de Brown-Formanes otro gran ejemplo de un producto querompe todos los moldes. Por supuesto, siem-

pre han existido alianzas de celebridades enel sector duty free, pero la unin de dos iconosestadounidenses como Frank Sinatra y JackDaniels es realmente un acontecimientoinusual. Usted podr leer ms informacinsobre esta pareja ideal en la pgina 200.

Este nmero est lleno de soadores quelogran realidades en el sector minorista de via-jes. Tantos, que no dispongo de espacio paramencionarlos a todos. Nos sentimos muyorgullosos de nuestro nmero dedicado aIAADFS 2013, y creemos que es un reflejoapropiado del xito que est teniendo actual-mente la industria en la regin. Les invito aleer, y, ms importante an, a recorrer elsaln de exposiciones en busca de las per-sonalidades y productos que aparecen enestas pginas. Espero saber lo que les inspiraa soar este ao en Orlando.

Un cordial saludo,

Ryan WhiteEditor de Concesiones, Licores y [email protected]

ACrear nuestras propias oportunidades

Global travelretail excellencewww.worlddutyfreegroup.com

Contents

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44IN BRIEFAirmall at PIT Named Best Overall Concessions Program Passenger demand uptick continues in 2013, says IATA International visitation to US up 4% in October 2012 FDFA releases January land border duty free sales statistics

TOP STORY: GRUPO WISA

Grupo Wisa opens its Cono Sur offices and expands itsinternational footprint even more

"Grupo Wisa inaugura sus oficinas en el Cono Sur, ycumple su promesa de transformarse en una operacincada vez mas internacional

THE NUANCE GROUP/DFASS

Despite a last-minute change in gate assignments, TheNuance Group and DFASS remain confident in thepotential of their new stores at Orlando Airport

TOP BRANDS

Top Brands continues showing year-on-year organicgrowth as it expands the well known El Dorado Duty Freename to new markets

LATIN AMERICA REPORT

Business in Latin America continues to grow, albeit at aslower pace, as operators opt to invest in new stores andrenovations

Los negocios en Latinoamrica van en aumento, aunquea paso lento, mientras los operadores optan por invertiren nuevas tiendas y renovaciones

ARI NORTH AMERICA

Aer Rianta Internationals Canadian operations achievesolid performance in 2012 on the back of innovative in-store promotions and events

APRIL 2013 VOL 23, NO 1

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REGIONAL REPORT URUGUAY

Uruguay has a lot of things going for it when it comes toduty free, but what does the future hold for the country asgrowth levels out in South America?

! "En el campo duty free, estn ocurriendo mltiplesacontecimientos en Uruguay, pero qu le depara elfuturo al pas, y a los niveles de crecimiento enSuramrica?

MANNAH DUTY FREE

42 years after the founding of parent company Grupo LaPetisquera, Mannah Duty Free shows no signs of slowingdown

OUTBOUND CHINESE TRAVELERS

The number of outbound Chinese travelers is on the rise,and theyre drawn by long-haul destinations with ampleopportunities to shop

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COTY BEAUTY - BOOTH #1515GMP SERVICES VIVIAN WISCHT [email protected] (305) 895-2600

Contents


BUSIEST AIRPORTS

"!!&! "!&Americas Duty Free looks at whats new and notable atfour of the worlds top airports

AIRPORT WAYFINDING

!$&Americas Duty Free speaks with three wayfinding expertsto discover how airports and airport retailers can benefitfrom incorporating new wayfinding solutions

ASSOCIATION Q&A

&Americas Duty Free talks to three industry organizationsplanning dazzling and informative events for this yearsduty free calendar

"(!Americas Duty Free habla con tres organizaciones de laindustria que proyectan eventos fascinantes einformativos para el calendario duty free de este ao

LS TRAVEL RETAIL NORTH AMERICA

%!!!A series of high-profile concessions awards will see LStravel retail North America opening numerous big-namestores in the US this year

LA AURORA INTERNATIONAL AIRPORT

!!%Guatemalas La Aurora International Airport evolves itsbusiness model to focus on stronger relationships withconcessionaires and brands for the benefit of all

MIAMI INTERNATIONAL AIRPORT

! Miami International Airport sizzles with record-setting2012 passenger numbers and a host of large-scalerenovations to better serve travelers

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!! After a very successful 2012, the FDFA expects tomaintain the momentum with it May 2013 BusinessDevelopment Summit and Golf Tournament

BAJA DUTY FREE

" Baja Duty Free opens two new stores and continues itsupward trajectory despite competition from the localmarket and violence in Mexico

FLYINSTYLE

FlyInStyle is set to change the way travelers, brands andretailers interact in the airport environment with therelease of an innovative new smartphone application

PARBEL

LOral Travel Retail Americas eyes positive potential inthe Americas

ESSENCE BEAUTY

! #!$& The venerable TR distributor continues to build itsbusiness on a foundation of strong relationships

THE CLOUDBREAK GROUP

"The Cloudbreak Group may be new to travel retail, but itsbrand savvy has been years in the making

BEAUTY NEWSParlux and Kenneth Cole sign licensing agreement Painting the Caribbean with Manifesto by Yves Saint Laurent Try before you buy at Kiehls Striking out on his own Travalo takes a hold on the Americas at IAADFS 2013

BEAUTY BEAT: FRAGRANCES

'&Flowers, fruit and foliage set the tone

BEAUTY BEAT: SKINCARE & COSMETICS

)! Stronger colors, better skincare based on scientific support

CLARINS GROUP

#!$!&! Following a significant management rehaul, Clarins Groupfocuses on boosting service at its top-selling doors androlling out a powerful new anti-aging serum

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Visit us at Booth #1515 or contact Vivian Guzman-Wischt of GMP Services at 1.305.895.2600 or [email protected]

MOSCOW LONDON BEIJING ISTANBUL NEW YORK SANTIAGO VANCOUVER

Contents


MENS SKINCARE

Mens skincare has arrived, and these brands plan tomake the most of it

CRABTREE & EVELYN

Crabtree & Evelyn courts North American travel retail

CALIBRE BEAUT

Quadrants new Calibre Beaut division takes on NorthAmerica and beyond

SUPPLIER NEWSLacoste strengthens its leverage Lambretta hits thehigh seas Braun revolutionizes personal care CBMInc. / Meade Ray International bags comfort and style ALFAbrands presents its latest vice Wildfox Couture exploresnew territory

WATCH NEWS

!$Geneva Watch Group makes time for change

SUNGLASS REPORT

$$ The sunglass category becomes more technologicallyadvanced this season, with the increased interest inpolarization among other trends

BT FASHIONS

!$BT Fashions looks forward to steady growth in 2013,building on continued success of the flagship BijouxTerner brand and its fresh new AdiXion brand

GLAM ROCK

Armed with a new strategy, Glam Rock is increasing itsexposure and gaining interest across the board

THOMAS SABO

!With a versatile product offering, Thomas Sabo movesbeyond jewelry

Q&A: BUCKLEY LONDON JEWELLERY

" Buckley London Jewellery takes on the Americas, withhelp on the ground from distributor International BrandBuilders

CROSS

With new sales strategies in the works, Cross is lookingat another successful year

CONFECTIONERY NEWSGoldkenn revisits and refreshes Chocolat Frey focuseson gifting and sharing Fazers offerings take flight Perfetti promotes confectionerys increasing potential Hawaiian Host showcases its new grab-and-go stand up bagsin Orlando Hersheys launches exclusive new chocolatebar flavors and variety box Jakemans launches HockeyTribute bottles and Maple Infusions

KRAFT FOODS WORLD TRAVEL RETAIL

"KFWTR backs up its brand dominance with lots ofcustomer research

SPECIAL REPORT: VODKA

VODKA REPORT

# $While premiumization is all the rage, theres no denyingthat the market for high-quality, affordable spirits is stillvery lucrative, especially when it comes to the popularvodka category

RUSSIAN STANDARD

Russian Standard goes for the gold in the Americas dutyfree channel

VODKA NEWSExposure is key for Absolut heading into IAADFS ThreeOlives to launch new vodka honoring Hollywood legendMarilyn Monroe Ladoga Groups Imperial CollectionGold positioned for duty free growth The Jewel of Russiabrings authentic Russian vodka to IAADFS Roust Inc.appoints Oleg Kirillin as CEO White Gold targets worldwideconsumers with redesigned True Original bottles Absolut releases Denim, new GTR limited edition gift pack

ICEBERG VODKA

$Iceberg Vodka premieres newpackaging and three flavors at thisyears IAADFS, but for CEO andPresident David Meyers its whatson the inside that really counts

VODKA SPRING COCKTAILS

Americas Duty Free brings readersour favorite spring cocktails

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Jessica Chastain


SPIRITS INDUSTRY NEWS

US distilled spirits prove to be favorites at home andabroad according to a recent report from the DistilledSpirits Council of the United States

WILLIAM GRANT & SONS

!William Grant & Sons reports a record year in travel retailand focuses on exclusive lines of its bestselling spirits for2013

LIQUEUR REPORT

""Americas Duty Free speaks with some big-name liqueurs,discovering that regardless of how big they get,innovation is key to remaining relevant in travel retail

THE EDRINGTON GROUP

"!The continued popularity of premium whisky and theburgeoning high-end rum market put The EdringtonGroup in an enviable position for 2013

RMY COINTREAU TRAVEL RETAIL AMERICAS

!!$ # $We speak with Area Director of Rmy Cointreau TravelRetail Americas Francois Van Aal about the continuedpotential of the companys diverse portfolio in theAmericas

BACARDI CRUISE COMPETITION

"%Bacardi announces its Cruise Competition Bartender ofthe Year and Chef of the Year in sunny Florida, markingthe first time a bartender has won the cocktail portion ofthe event two years running

BROWN-FORMAN

" A very special Jack Daniels honoring Ol Blue Eyescontinues to roll out across Americas travel retail andbeyond

BOTRAN RUM

"The boom in premium rums is heartening, says CEO ofIndustrias Licoreras de Guatemala Roberto Garcia-Botran,but theres still work to be done in educating the consumeron rum as a choice for lovers of high-end spirits

WORLD OF PATRIA INTERNATIONAL

$"At IAADFS this year, WOPI showcases a new blendedScotch whisky and specially produced water tocompliment your favorite single malt

DIAGEO GTME

Diageo unveils Latin America-inspired The Gold Route,the second travel retail exclusive blend from JohnnieWalkers The Explorers Club Collection

LIQUOR NEWSPaul Sapin to distribute Seva Groups travel retail wine rangein LATAM Courvoisier Le Voyage de Napoleon to sail intothe Americas Patrn Spirits introduces duty free exclusiveGran Patrn Piedra Americas plays important role in ChivasBrothers Blend global rollout Jaan offers somethingdifferent for duty free Tequilera Corralejo warms up forOrlando Prowood offers two exquisite spirits from Franceand Armenia MONARQ Group poised for continuedgrowth in Americas travel retail Specialty Brands toshowcase wide variety of wines and spirits at IAADFS

HORIZON PREMIUM BRANDS, INC.

Horizon Premium Brands, Inc. comes to Orlando with anumber of high-quality tobacco products aimed at value-conscious travelers

KT&G

New Tonino Lamborghini Ice Volt heats up sales for KT&G

BRITISH AMERICAN TOBACCO INTERNATIONAL

!"!Americas Duty Free speaks with Marcos Novis, KeyAccount Manager Americas at BAT International, aboutwhat attendees can expect from the company this year inOrlando

HABANOS S.A.

The XV Habanos Festival took place last month,introducing attendees to new cigars, wine and foodpairings, celebrity guests and much, much more

TOBACCO NEWSJ. Corts vies for visibility Agio boosts range, retailconcepts JTI Worldwide Duty Free appoints new headof corporate affairs and communications World of Patriabrings Vaepe E-Cigarettes to travel retail Villiger eyes Asia,Europe and the US for continued growth

DJARUM

!!Over 60 years in the making, the company sits at theforefront of the industry with innovations in cigarettemaking

NEW & NOTABLEStoli Salted Karamel Wonderful Pistachios Kit Kat PhoneBox Tin

THE LAST WORD

$ Americas Duty Free gives industry executives the chanceto shine the light on their most loyal companions

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In Brief

he International Air Trans-port Association (IATA)released global air traveldemand statistics for Jan-

uary showing a continuation of theuptick in passenger travel that beganat the end of 2012. Overall, demandwas up 2.7% on the previous Jan-uary, which is slightly ahead of the2.2% expansion in capacity. Loadfactors stood at 77.1%. Strong demand for air travel dri-

ven by the Chinese New Year hasdistorted the January figures. Chi-nese New Year fell in January 2012and in February this year. The com-parisons to such a strong monthmade January 2013 demand lookweaker than the underlying trendwould indicate. After adjusting forsuch seasonal factors, IATA esti-mates that the actual growth wouldhave been 3.5%. This growth isstill lower than the 5.3% 2012 aver-age. However, air travel growthslowed sharply through the yearand the results of the past fewmonths represent an accelerationof demand growth. Passenger travel is growing in

line with business confidence lev-els. Recent months have seensome positive economic signsemerge in both the US and China,

and the Eurozone crisis seems tohave stabilized. Of course risksremain; the impact of US budgetcuts has yet to play out and fuelprices are high. But even with thoseheadwindsreal and potentialwe still see underlying support forcontinued and potentially evenstrengthened growth, said TonyTyler, IATAs Director General andCEO.In terms of international travel

within the Americas, Latin Americaposted the second highest growthin demand at 12.2%. This was out-paced by capacity growth of 13.7%.Load factors stood at 79.0%, onlyexceeded by North American air-lines. The regions growth is beingfueled by expanding economiesparticularly Bolivia, Chile, Colombiaand Peruwhere reduced unem-ployment has boosted consumerdemand.North American carriers reported

a 1.5% expansion in demand evenas capacity was trimmed by 0.8%when compared to year-ago lev-els. Demand is strong on the backof improved economic performancein the US, says IATA, and airlines aretightly managing capacity. Theregions airlines posted the highestload factor at 79.4%.

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Passenger demanduptick continues in2013, says IATA

irmall USA has announced that the Airmall at PittsburghInternational Airport (PIT) was named Best OverallConcessions Program (medium airport) in the AirportRevenue News (ARN) 2013 Best Airports & Conces-

sionaires Awards program. Airmall received the award at a recep-tion during the ARN 2013 Revenue Conference & Exhibition.With a commitment to consistently enhancing the traveler expe-

rience through high-quality concessions and exceptional customerservice, the Airmall at PIT has set the gold standard for airport con-cessions since it opened in 1992, said Jay Kruisselbrink, Vice Pres-ident of Development for Airmall USA. Weve recently launched

the first phase of a yearlong construction project that will resultin a significant overhaul of the concessions program and add eightnew retail units. This project is another testament to our desireto offer a dynamic concessions program to travelers, and werehonored that ARN has recognized our efforts to continually strivefor excellence.In fall 2012, the AIRMALL at PIT unveiled an aggressive plan

to reshape the award-winning concessions program at PIT. TheUS$10-million upgrade will create a new retail core in the CenterCore of the airports airside terminal, a move that is aimed at attract-ing some of the nations top brands.

A

In Brief


he Frontier Duty Free Association (FDFA) recently announced Jan-uary 2013 land border duty free sales statistics. According to theorganization, the main categories that dominated sales in landborder duty free are as follows, in order of sales highest to low-

est: Alcohol; Tobacco; P&C; Food; Beer; Jewelry, Watches and Clocks;Clothing; Accessories; Souvenirs; Office and Travel Supplies; Glass-ware, Crystal, China, Figurines and Porcelain; Other; Arts and Crafts; andElectronics.The national land border duty free sales figure for January 2013 was

CAD$7.1 million (US$6.92 million), representing a 1.51% increase insales compared to January 2012. The national airport duty free sales fig-ure for January 2013 was CAD$20.4 million (US$19.9 million). This is anincrease in sales of 6% compared to January 2012.For January 2013, the Prairie Region saw sales of CAD$628,000

(US$612,000). This represents a slight decrease in sales of 2.4% com-pared to January 2012. The Pacific sales figure for January 2013 wasreported as CAD$1.2 million (US$1.17 million), a 7% increase in sales com-pared to the same period last year.The Ontario sales figure for January 2013 was CAD$4 million (US$3.9

million). This is an increase in sales of 0.98% compared to January2012. Finally, the sales figure for the Atlantic/Quebec region for January2013 was CAD$1.2 million (US$1.17 million), which represents a marginalincrease of 0.1% from the same month last year.

TFDFA releases January landborder duty free sales statistics

he US Department of Commerce todayannounced that 5.6 million international visitorstraveled to the United States in October 2012,a 4% increase over October 2011. October

2012 registered the 19th straight month of increases intotal US visits.

In October 2012, the top inbound markets continuedto be Canada and Mexico, with each market up 6% and7%, respectively. Seven of the nine overseas regionswere up in October 2012 (Asia +13%, South America+13%, Oceania +7%, Middle East +8%, Central Amer-ica +1%, Eastern Europe +5%, and Africa +6%). West-ern Europe and the Caribbean registered the only twodeclines, down 8% and 4% respectively in October2012 compared to a year ago. For the first ten monthsof 2012, visitation was up 6% compared to the sameperiod in 2011.

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International visitation to US up 4% in October 2012


three phases, with the first being the aforementioned renovationand opening of the six Uruguay/Brazil border stores. Phase 2 consistsof participating in a number of Brazilian airport tenders, while Phase3 will see the company move into Peru and Chile with both travel retailand domestic market initiatives.In terms of the first phase, Grupo Wisas Uruguay base in Zona

Franca de Libertad has been established as the logistical heart of theBrazil border store operation. Goods from Panamaor in certain casesthe US, Europe and parts of South Americawill be shipped thereand then distributed among the six stores located in Rivera, RioBranco and Acegu.The companys flagship South American store, measuring 850

square meters, will be located in Rivera. Its a prime location, saysMontico. About 60% of Uruguays border store business is done inRivera.Grupo Wisa will operate two more border stores in Rivera mea-

suring 300 and 350 square meters. We also have a new store in a high-end shopping mall in Rivera called Melancia. The location will mea-sure 4,000 square meters and will open in March of 2014. We are oneof two major stores at the mall.Travelers to Rio Branco and Acegu will also soon see modern La

Riviera-branded stores measuring 850 and 1,300 square meters,

mericas Duty Free first broke the story of Grupo Wisasmove into South American duty free just over a year agoin our IAADFS 2012 issue. Since that time, a number ofimportant changes have taken place at the company thatmake good on former Commercial Director of Travel

Retail Marcelo Monticos initial promise of expanding Grupo Wisasinternational footprint even more than before.Montico moved from Panama to his new home base of Montev-

ideo, Uruguay in September 2012 to head up Grupo Wisas Cono Suroperations in the capacity of Vice President Corporate Cono Sur.Taking responsibility in Panama for the position of Vice President Northern Travel Retail is Reinaldo Rangel. From Montevideo Im handling logistics, human resources and

essentially everything that goes into the job of starting a business ina new country, Montico told us recently.From Grupo Wisas Cono Sur home base, Montico and company

will oversee the Uruguay/Brazil border store business, which GrupoWisa is in the process of acquiring, in addition to handling future busi-ness opportunities in other South American countries. For themoment, though, Montico has his sights set firmly on the renovationof six stores on the border that will give Grupo Wisa plenty of sell-ing space with which to begin its foray into the highly lucrative SouthAmerican market. With refurbishment work ongoing at the loca-

tions, Grupo Wisa has already submitted the pro-posed acquisitions to Uruguays Ministry of Econ-omy and Finance. In terms of renovations, wereexpecting to have the first La Riviera flagshipstore open by May 2013, explains Montico.

Montico tells us that Grupo Wisas South Amer-ica initiative has been carefully planned and theoperators move into the region will take place in

A

!!!!!

Top Story: Grupo Wisa

BY RYAN WHITE

Grupo Wisas new Uruguay stores will feature bestselling products across a range of categories

An artists rendering of what Grupo Wisas new storein Rivera, Uruguay will look like once completed

respectively. In actuality the Acegu location currently measures 650square meters, but in a significant move renovation efforts will seethe store double in size.

Montico tells us that a bigger store in Rio Branco may be a possi-bility in the future as Grupo Wisa may potentially look to expand thecommercial area, but for the moment no plans have been finalized.

Of course, its clear from any number of success stories of late thatselling to the large base of Brazilian cross-border travelers fromstores in Uruguay is big business. However, Grupo Wisa has alsoidentified a number of future opportunities at major airports withinBrazilnamely at Curitiba, Porto Alegre and Guarulhos (Terminal

3). These tenders are expected to be announced in the second semes-ter of this year and Montico assures us that Grupo Wisa will be par-ticipating as part of the second phase of its expansion plan.

The buying power of Brazils middle class is fully double what itwas just five short years ago, Montico explains. These are some ofthe things that we considered when first moving into the region. Theconditions for developing business in Brazil specifically and SouthAmerica in general are very good right now and we expect this envi-ronment to continue fostering growth in the mid to long term.

The third part of Grupo Wisas expansion plan consists in mov-ing into the domestic markets of Peru and Chile. Montico explains:Part of this last phase relates to a fashion house brand, which is alocal market concept that Grupo Wisa has franchise rights to oper-ate in some major markets, he says. In terms of travel retail in thesecountries were currently examining our options but I cant yet giveany details other than to tell you it likely wont be the purchase of exis-tent companies, but rather competing for tenders where opportuni-ties arise. In Chile, for example, well be competing for tenders thatshould be announced in the second half of this year.

Operators all over the world who cater to Brazilians are keenly awareof the draw that major brands can have on these travelers. Arguablyone of the most popular brands for this nationality is cosmetics iconMAC. Ironically enough, the brand isnt currently present in anyUruguayan border stores. Significantly, Grupo Wisa has secured exclu-sive rights to sell MAC products in Rivera. As previously mentioned,the city makes up about 60% of the border business done in Uruguay,giving Grupo Wisa a distinct advantage over the competition.

This is big and the importance of this development cant beunderstated, says Montico. In fact, befitting a brand as beloved byBrazilians as MAC, Grupo Wisas flagship store in Rivera will featurea special shop-in-shop completely dedicated to the brand.

Weve always believed that in order to flourish, regardless of theregion, we need to add value, Montico continues. This is one of manyways that were adding value in South America. Were continually onthe lookout for brands that our clients will appreciate and we will nodoubt have more announcements of exclusive offers as the Cono Surproject progresses.


Grupo Wisas flagship South American store in Rivera, Uruguay will feature aspecial MAC boutique; the operator is the exclusive retailer of the brand in Rivera


For us, opening the Conos Sur office isnt a one- or two-year pro-ject. This is a ten- or twenty-year initiativetheres no doubt that werein it for the long term, Montico tells us. Grupo Wisa had to go out-side of its comfort zone a bit to continue growing. We identified earlyon that this region of the world will continue growing over the com-ing years and as such its the perfect opportunity for us.

When you look at the companys organic growth over the last year,it certainly isnt bad, but we want to be considered as a more inter-national operator than before, he continues. South America has alot of opportunity for further development.

Montico points out that soy, one of the regions main exports, isselling at over US$500 a ton at the moment. As a result, the GDPs ofsome countries in this region have been rising significantly, fuellinga middle class with both purchasing power and the desire to spend.

Put simply, in five years I see Grupo Wisa with stores straight fromMexico down to Argentina and in all points in between, Montico con-cludes. This isnt a try it out and see how it goes plan. Were herefor the long term and we see some amazing opportunities in SouthAmerican travel retail.

2012 was an extraordinary year for our existent travel retail opera-tions, says Grupo Wisas new Vice President Northern Travel RetailReinaldo Rangel. Our commercial strategyfocused on uppingaverage spend and penetration combined with expansion in theregionresulted in a growth of close to 15% versus 2011. This rep-resents the fifth year in a row that the company has grown double dig-its. Notably, our business results have outpaced the growth in the GDPsof the countries where we operatenamely Panama, Colombia,Mexico, Guatemala, El Salvador, Costa Rica, Nicaragua and Belize.

Grupo Wisas strategy for 2012 focused on high-impact launches andpromotions every 15 days, which resulted in a 5% increase in averageticket to US$95.10. Furthermore, penetration in the region reached 17%.

The success of our promotional program is indicative of thelarge number of options that we offer our supplier partners when itcomes to developing their brands in the region, says Rangel. Wereable to offer promotional packages to our partners by region, coun-try or store, with the ultimate goal of helping the brands reach theirmaximum potential.

Travelers in Bogota can now be treated to an outstanding duty free shopping experience in Grupo Wisasnew 1,314-square-meter walkthrough store, located just at the entrance of the commercial area

w w w . t a i r o . c o mTAIRO International 2013



In the Bogota store, just like in all La Riviera stores, travelers can find world-famous brands incategories such as P&C, sunglasses, watches, luggage, toys, confectionery, spirits and tobacco

In the second half of 2012 Grupo Wisa inaugurated bespoke,modern stores in newly renovated airports El Dorado (Bogota,Colombia) and Rafael Nez (Cartagena, Colombia). For us, its areal honor to be a part of the infrastructural development in Colom-biaand indeed in all of the countries where we operate, explainsRangel. Travelers in Bogota can now be treated to an outstanding duty free

shopping experience in Grupo Wisas new 1,314-square-meter walk-through store, located just at the entrance of the commercial area. Thiscompletely open locationthe first store in the commercial areahas already turned into a favorite, must-see store for travelers giventhe amazing variety of product offerings across categories, Rangelexplains.In the store, just like in all La Riviera stores, travelers can find world-

famous brands in categories such as P&C, sunglasses, watches, lug-gage, toys, confectionery, spirits and tobacco. Additionally, very soonGrupo Wisas Bogota store will feature boutique shop-in-shops from

prestigious names such as Burberry, Bvlgari, Tous, Tag Heuer andMichael Kors. In terms of Cartagena, a major boom is currently taking place in

the city. Grupo Wisas departures store in the airport measures 350square meters and features a wide variety of its bestselling productsacross the major duty free categories.In addition to these openings, weve also gone a long way toward

developing plans to support our operations in Mexico, Guatemala,Nicaragua, El Salvador, Belize and our commercial partners from IMASin Costa Rica, Rangel adds.

In terms of 2013, Grupo Wisa forecasts another 15% increase insales over last year, largely due to a continued focus on increasing aver-age spend per PAX and penetration. The operator has developed apromotional calendar for the entire year in order to ensure that sup-pliers are provided key spaces to promote exclusive brands. Of course, were also continuing to focus on providing our clients

with the best shopping experience, Rangel says. Our objective is tobe the preferred store for duty free purchases in the region.Rangel also promises that in 2013 the expansion of Grupo Wisas north-

ern Latin America operations will continue. As reported in numeroussources, Panamas economy continues to be the fastest growing in LatinAmerica, and there well be opening six more stores in the recently inau-gurated North Terminal at Tocumen Airport, he explains. Two of the above stores will offer P&C, beauty treatments, sunglasses,

watches, spirits, tobacco and chocolates. Another store will offer high-end handbags, while the fourth will be dedicated to the toys category.The fifth store will offer luggage and the sixth will be a boutique.In April, the operator will also be opening an arrivals store and a

duty paid location in Cartagena, further strengthening its positionin Colombia on the back of a January store opening at Baranquilla.With these new openings, well reach 80 points of sale in the region,with 1,400 staff offering the best in service to more than 15 millionpassengers, Rangel concludes.

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se llevar a cabo en tres fases. La primera consiste en la renovacinmencionada y la inauguracin de las seis tiendas en la fronteraUruguay/Brasil. Por su parte, la segunda fase consiste en la participacinen varias licitaciones de aeropuertos brasileos; mientras que en la ter-cera fase la compaa entrar a Per y Chile con iniciativas de TravelRetail y de mercado local.En lo referente a la primera fase, la base logstica de Grupo Wisa

en Uruguay, ubicada en la Zona Franca de Libertad, se ha establecidocomo centro de distribucin de la operacin de las tiendas de fron-tera en Brasil. Las mercancas procedentes de Panamo en ciertoscasos, de los Estados Unidos, Europa y varias partes de Suramricase enviarn a esa base, desde donde sern distribuidas a las seis tien-das localizadas en Rivera, Rio Branco y Acegu.La tienda insignia de la compaa en Suramrica, con una exten-

sin de 850 metros cuadrados, estar en Rivera. Tiene una ubi-cacin privilegiada, asegura Montico. Cerca del 60% del negocio detiendas de frontera de Uruguay se lleva a cabo en Rivera.Grupo Wisa operar otras dos tiendas de frontera en Rivera, con

extensiones de 300 y 350 metros cuadrados respectivamente ubicadasestratgicamente en la zona con el mejor desempeo comercial de laciudad. Tambin contaremos con una de las dos tiendas anclas enel nuevo centro comercial llamado Melancia, el cual abrir al pblicoen Marzo del 2014 y donde La Riviera contara con 4,000 metros cuadrados para ofrecer una experiencia de compra difcil de igualaren este canal, explica Montico.Muy pronto, los viajeros con destino a Rio Branco y Acegu ten-

drn a su disposicin dos modernas tiendas de marca La Riviera, conextensiones de 850 y 1,300 metros cuadrados, respectivamente. Enrealidad, el establecimiento de Acegu ocupa actualmente 650 me-tros cuadrados, pero estamos trabajando en un diseo de tienda quenos permitir casi duplicar esa superficie..Montico nos afirma que la existencia de una tienda ms extensa

en Rio Branco podra ser una posibilidad en el futuro, pues proba-blemente Grupo Wisa ampliara el rea comercial, aunque por elmomento no se ha concluido ningn plan al respecto.

ace casi un ao, Americas Duty Free dio la primicia de laincorporacin de Grupo Wisa al sector duty free surame-ricano, en su nmero dedicado a la IAADFS 2012. Desdeentonces, se han producido numerosos cambios impor-tantes en la compaa, en concordancia con la posicin

inicial de Marcelo Montico, Director Comercial de Travel Retail, de queesta expansin le dara a Grupo Wisa una cobertura geogrfica aun masinternacional que la que tena hasta el momento. .En septiembre del 2012, Montico se traslad de Panam a su

nueva sede en Montevideo, Uruguay, para dirigir las operaciones deGrupo Wisa en la regin, como Vicepresidente Corporativo para elCono Sur. Entretanto, Reinaldo Rangel tom la posicin en Panamcomo el nuevo Vicepresidente Comercial de Travel Retail para laRegin Norte de Latinoamrica.Desde Montevideo estoy a cargo de la logstica, los recursos

humanos, el plan de negocios y esencialmente todo lo que implica la laborde iniciar un negocio en un pas nuevo, afirm Montico recientemente.Desde la sede de operaciones de Grupo Wisa para el Cono Sur, Mon-

tico y sus colaboradores supervisarn el negocio de tiendas en lafrontera Uruguay/Brasil, en proceso de adquisicin por parte deGrupo Wisa; adems de manejar futuras oportunidades de negociosen otros pases suramericanos. Sin embargo, por el momento, Mon-tico est firmemente concentrado en la renovacin de seis tiendas defrontera, que le proporcionarn a Grupo Wisa abundante espacio deventas para comenzar su incursin en el altamente lucrativo mercadosuramericano.Mientras se llevan a cabo los trabajos de renovacin en los difer-

entes establecimientos, Grupo Wisa ya ha presentado las propuestasde adquisiciones al Ministerio de Economa y Finanzas de Uruguay.En lo que respecta a renovaciones, esperamos inaugurar la primeratienda insignia, La Riviera, en mayo del 2013, explica Montico.

Montico nos dice que la iniciativa de Grupo Wisa en Suramrica se pla-nific cuidadosamente, y que la introduccin del operador en la regin

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The Fragrances section of the new SouthAmerica flagship store in Rivera, Uruguay


e New Mens Fragrance VinceCamuto.com

Grupo Wisas new Uruguay stores will feature bestselling products across a range of categories



A render of the Electronics section of Grupo Wisas newflagship South America store, located in Rivera, Uruguay

Por supuesto, segn las numerosas y recientes historias de xito queconocemos, est claro que venderle a la gran cantidad de viajerosbrasileos que cruzan la frontera en las tiendas de Uruguay es un grannegocio. Sin embargo, Grupo Wisa identific numerosas oportu-nidades futuras en aeropuertos importantes de Brasil como Curitiba,Porto Alegre y Guarulhos ( Terminal 3). Se espera que estas licitacionesse anuncien en el segundo semestre de este ao, y Montico se mues-tra confiado en la participacin de Grupo Wisa en las mismas, comoparte de la segunda fase del plan de expansin.

El poder adquisitivo de la clase media en Brasil es plenamente eldoble de lo que era hace slo cinco aos, explica Montico. Estos sonalgunos de los factores que consideramos cuando nos introdujimospor primera vez en la regin. Las condiciones para crear negocios enBrasil especficamente, y en Suramrica en general, son muy buenasen este momento, y esperamos que este ambiente siga fomentandoel crecimiento de mediano a largo plazo.

La tercera parte del plan de expansin de Grupo Wisa consiste ensu introduccin en los mercados nacionales de Per y Chile. Parte deesta ltima fase se refiere a la marca de una casa de diseo de modas,un concepto de mercado local del cual Grupo Wisa tiene derechos defranquicia para operar en algunos mercados importantes, explicaMontico. En trminos de operacin de Travel Retail, estamos exa-minando actualmente nuestras opciones en esos pases, pero no puedodar ms detalles al respecto, slo decirles que no habr adquisicionesde compaas existentes, sino ms bien una competencia por licitacionesdonde surjan oportunidades. Por ejemplo, en Chile, competiremos porlicitaciones que sern anunciadas en la segunda mitad de este ao.

Los operadores de todo el mundo que les venden a los brasileos, estnmuy conscientes del atractivo que ejercen las marcas importantes en

estos viajeros. Posiblemente, una de las marcas ms populares paraesta nacionalidad sea MAC, un cono de los cosmticos. Por decisionespropia de la marca, hasta el momento la misma no estaba disponibleen ninguna de las tiendas de frontera con Brasil, ya que el ambientede reatil no era el propicio para los standarts que MAC requiere. Labuena noticia es que La Riviera ha llegado a un acuerdo con MACpara vender en carcter de exclusividad los productos en la ciudadde Rivera. Como se mencion previamente, la ciudad compone cercadel 60% del negocio de frontera que se realiza en Uruguay, lo cual leda a Grupo Wisa una clara ventaja sobre la competencia.

Es un hecho considerable, y la importancia de este aconte-cimiento no se puede pasar por alto, asegura Montico. A propsitode ello, para ponerse en sintona con una marca tan querida por losbrasileos como MAC, la tienda insignia de Grupo Wisa en Riveracontar con una Shop in Shop dedicada totalmente a la marca.

Siempre hemos pensado que, para crecer, independientementede la regin, hay que aadir valor, prosigue Montico. Es una de lasmuchas maneras en las que estamos aadiendo valor en Suramrica.Estamos en bsqueda continua de marcas que apreciarn nuestrosclientes, y sin duda haremos ms anuncios de ofertas exclusivas enla medida que progrese el proyecto Cono Sur.

Para nosotros, la apertura de la oficina para el Cono Sur no es unproyecto de uno o dos aos. Es una iniciativa de diez o veinte aos.No hay duda de que permaneceremos en ella a largo plazo, dice Mon-tico. Grupo Wisa tuvo que ampliar la cobertura geogrfica de sus opera-ciones para seguir creciendo. Pudimos identificar de antemano queesta regin del mundo seguir creciendo en los prximos aos, y comotal, es la oportunidad perfecta para nosotros.

Cuando se comparan los crecimientos orgnicos de los ltimosaos, los mismos no lucen nada mal, pero queremos que se nos

Travelers in Bogota can now be treated to an outstanding duty freeshopping experience in Grupo Wisas new 1,314-square-meterwalkthrough store, located just at the entrance of the commercial area



considere como un operador cada dia mas internacional, contina Mon-tico. Suramrica tiene muchas oportunidades de mayor desarrollo.Montico destaca que la soja, uno de los principales renglones de

exportacin de la regin, se est vendiendo en estos momentos a ms de US$500 la tonelada. Como resultado, el PIB (Producto InternoBruto) de algunos pases de la regin ha crecido significativamente,estimulando una clase media con poder adquisitivo y deseos de gastar.En resumen: dentro de cinco aos veo a Grupo Wisa con tien-

das desde Mxico hasta Argentina y en todos los puntos intermedios.No se trata de un plan de probar a ver qu pasa. Estaremos aqu alargo plazo, y vemos algunas oportunidades sorprendentes en el sec-tor retail de Suramerica, concluye Montico.

El 2012 fue un ao extraordinario para nuestras operaciones de TravelRetail ya existentes, afirma Reinaldo Rangel, el nuevo Vicepresi-dente Comercial de Travel Retail de Grupo Wisa para la ReginNorte de Latinoamrica . Nuestra estrategia comercialenfocadaen incrementar el ticket promedio y la penetracin, combinada conuna expansin en la regindio como resultado un crecimiento cer-cano al 15% en comparacin con el 2011. Este representa el quintoao consecutivo con crecimiento de doble dgito para la compaa .Notablemente, los resultados de nuestro negocio han superado el crecimiento del PIB de los pases en los que operamos: Panam, Colom-bia, Mxico, Guatemala, El Salvador, Costa Rica, Nicaragua y Belice.La estrategia de Grupo Wisa en el 2012 se enfoc en lanzamientos

de productos y promociones quincenales de alto impacto , lo cual resulten un incremento de 5% del ticket promedio alcanzando un nivel deUS$95.10, con una penetracin regional que alcanz un 17%.El xito de nuestro programa promocional radica en la variedad

de opciones que les ofrecemos a nuestros proveedores para el desa-rrollo de sus marcas en la regin, aade Rangel. Podemos ofrecer-les paquetes promocionales a nuestros socios comerciales a nivelregional , por pas o por tienda, con el propsito principal de ayu-dar a que las marcas alcancen su mximo potencial.En la segunda mitad del 2012, Grupo Wisa inaugur modernas

tiendas en los aeropuertos renovados de El Dorado (Bogot, Colom-bia) y Rafael Nez (Cartagena, Colombia). Para nosotros es real-mente un honor formar parte del desarrollo de la infraestructura enColombia, as como en el de todos los pases en los que operamos,explica Rangel. En la actualidad, los viajeros en Bogot pueden disfrutar de una

extraordinaria experiencia de compras duty free en el nuevo formatode tienda Walk Through de 1,314 metros cuadrados de GrupoWisa, ubicada a la entrada el rea comercial. Este establecimiento com-pletamente abiertola primera tienda en el rea comercialya seha convertido en una parada obligada para los pasajeros, dada la sor-prendente variedad de ofertas de productos en diferentes categoras,prosigue Rangel.

En la tienda, al igual que en todos los puntos de venta de La Riviera, los pasajeros pueden encontrar reconocidas marcas a nivelmundial en categoras como perfumes, tratamientos y cosmticos, lentesde sol, relojes, equipos de viaje, juguetes, confitera, licores y cigarrillos. Adems, esta nueva tienda de Grupo Wisa en Bogotpronto contar con boutiques de lujo shop-in-shop de marcasprestigiosas como Burberry, Bvlgari, Tous, Tag Heuer y Michael Kors. Considerando el extraordinario auge que est experimentando

la ciudad de Cartagena, Grupo Wisa abri operaciones en la seccinde salidas del aeropuerto, la misma tiene una extensin de 350 metros cuadrados, y cuenta con nuestro amplio portafolio de productos de mayor venta en las principales categoras duty free.Adems de este plan de expansin, hemos avanzado enormemente

en la creacin de planes para respaldar nuestras operaciones en Mxico, Guatemala, Nicaragua, El Salvador, Belice, y de nuestrossocios comerciales de IMAS en Costa Rica, aade Rangel.

En lo que respecta al 2013, Grupo Wisa pronostica un crecimientode ventas del 15% , en comparacin al ao pasado, debido en granmedida a un enfoque continuo en el incremento del ticket prome-dio por pasajero y de su nivel de penetracin. Para esto el operadorha creado un calendario anual de promociones , a fin de garantizarque sus proveedores cuenten con espacios clave para la promocinde marcas exclusivas. Por supuesto, tambin seguimos enfocndonos en propor-

cionarles a nuestros clientes la mejor experiencia de compras, pun-tualiza Rangel. Nuestro objetivo es convertirnos en el lugar preferidopara las compras duty free en la regin.Rangel tambin promete que en el 2013 continuar la expansin

de las operaciones de Grupo Wisa en Latinoamrica. Como han repor-tado numerosas fuentes de informacin, la economa de Panamsigue siendo la de ms rpido crecimiento en Latinoamrica, por loque se abrirn seis nuevas tiendas ms en el recin inaugurado MuelleNorte del Aeropuerto Tocumen, explica.Dos de las tiendas mencionadas ofrecern perfumes y cosmticos,

tratamientos de belleza, lentes de sol, relojes, licores, cigarrillos ychocolate. Otra tienda vender carteras o bolsas de lujo, mientras queuna cuarta estar dedicada a la categora de juguetes. Finalmente, laquinta tienda se dedicar a la categora de equipos de viaje o male-tas, y la sexta ser una boutique.Para consolidar su posicin en Colombia, en el pasado mes de Enero

el operador abri dos tiendas en el aeropuerto de Barranquilla, unaDuty Free y una Duty Paid. En Cartagena adems de la tienda recininaugurada a finales del 2012, el Grupo Wisa abrir su tienda en el area de llegadas y una tienda Duty Paid. Con estas nuevas tiendas, llegaremos a 80 puntos de venta en la regin, con un personal de 1, 400 empleados que ofrecen lo mejor en servicio a msde 15 millones de pasajeros, concluye Rangel.


Americas Duty Free: Can you tell us a bitabout the thinking behind the duty paid/dutyfree combination? Are you expecting a major partof the sales to come from the duty paid portion?John Menchella: This kind of concept doesgenerate some incremental sales because itallows you to expand your customer base sothat you can sell to the domestic traveler for allthe items that you normally carry in a duty freeshop, except for the bonded items, such as liquorand tobacco.

We do this at other airports and results tendto vary. For example, in Orlando we actually dontexpect much in the way of duty paid salesbecause first of all, before the customer even getsto the airport, there are all kinds of factory out-let malls that carry high-end brands. Further-more, they have quite a significant pre-secu-rity offering in Orlando.

Having said that, we only began full operationsin December, so we dont have enough history rightnow to know exactly how much benefit well seefrom the duty paid portion of the business.

ADF:Can you tell me a bit about why NuanceGroup and DFASS decided to partner on thisinitiative? What are the advantages for eachcompany? JM: Its a joint venture between Nuance andDFASS, but then we also have ACDB partners,which are a requirement in most government con-cessions in the US. Nuance and DFASS originally

he Nuance Group and DFASS recentlyopened two new stores in OrlandoInternational Airport, located in Airsides1 and 4. The two locations cater largelyto international passengers fromCanada, South America, Britain andEurope, and the stores have been

designed with this clientele in mind. Travelers canfind luxury cosmetic brands such as MAC, Kiehls, EsteLauder, Clinique and Lancme, luxury fashion brandsincluding Longchamp, Tumi, Gucci, Tag Heuer andMont Blanc, plus a host of other high-end brandsacross the main duty free categories.

Despite a last-minute change in gate assignmentsthat has left Nuance Group and DFASS with the jobof rearranging the product mixes at each of the storesto better cater to the differing passenger profiles at Air-sides 1 and 4, Senior Vice President of Business Devel-opment at Nuance Group John Menchella andPresident, Ground Stores at DFASS Jon Potash tellAmericas Duty Free that business has been good dur-ing the first few months of operation.

T

Adaptingto change

Despite a last-minute change ingate assignments, The NuanceGroup and DFASS remain confi-dent in the potential of their newstores at Orlando Airport

The Nuance Group/DFASS

If we get the vol-umes and the mixthat we expect to getbased on the passen-ger information pro-vided by the airportadministration, werequite comfortable inour estimates.John Menchella, Senior Vice President of

Business Development, The Nuance Group

The P&C section atAirside 1; given last-minute changes togate assignments,Nuance and DFASSare looking at changingup the product mixslightly to cater to thelargely Latin Americanclientele passingthrough the terminal

Were very excitedwith this opportunity.The initial businessthat weve seen isvery encouraging.Jon Potash, President, Ground Stores, DFASS

The Nuance Group/DFASS


partnered several years ago and we work togetherin Chicago OHare and Fort Lauderdale. The reason we came together is that there

are certain synergies between the companies thatwere able to take advantage of. In terms ofbuying, some of it is regionally based and someof it is global. The North American region isthe smallest region for Nuance. It represents avery small percentage of the overall business,whereas with DFASS, this is their home turf andthey also have the inflight business. With respect to regional buying, there are

certain advantages to teaming up with some-one like DFASS on that. Nuance Group isalso able to leverage some of its establishedinfrastructure here on the airport side ofthings and so together were really takingadvantage of our respective strengths.

DF: Can you tell us a bit about the stores?JM:The Airside 1 store measures 243 squaremeters. The Airside 4 duty free shop is 467square meters. In terms of design, what we didis to make the stores a lot more open and invit-ing. Youll see much wider storefronts.Jon Potash: Yes, theres a clearer path for thetravelers to walk through and browse in eachof the areas.JM: Theres more ease of use now, whereluggage isnt bumping into furniture. We alsotried to make the stores more inviting and usethe natural lighting available to us throughthe glass ceilings to make the stores brighter,more inviting and more spacious. Whenyoure in the concourse you can actually seeinside the store and see focus brands. JP: There were some non-structural imped-iments in the previous store design that weremoved, which really opened up the locations.

ADF: What about the passenger profiles atAirsides 1 and 4? I understand there have beensome changes since the opening was announced.JM: Airside 1 is primarily Canadian andLatin American travelers. Whats happenedsince the time of the bid is that theyve shiftedover some of the airlines that were supposedto be in Airside 4 to Airside 1. As such, the LatinAmerican traffic is now going through Air-side 1. In Airside 4, its primarily European,Mexican and Caribbean destinations.

ADF:This has to throw a bit of a wrench inthe plan in terms of product mixes at the twolocationsJM: Well, we built according to the infor-mation that was given to us at the time of thedevelopment and the bid. As in most air-ports, sometimes gating assignments getswitched around. As an operator you have toreact accordingly. We try to build flexible stores, but you

can only do that to a certain extent. For exam-ple, we have a MAC store in Airside 4, whichis a boutique. Of course, this is a brand thatis very appealing to the Latin American cus-tomer. We dont have that in the current Air-side 1 location. Naturally, were going to haveto revisit our assortment and adjust accord-ingly, but this is something that happensfrom time to time.JP: Of course, Airside 1 is a significantlysmaller door, so we would limit the range towhat we would fit most effectively in thatspace given the customer profile.JM: Although the demographics are differ-ent in Airside 4, there are obviously going tobe the core ranges in both. However, wherespace allows and depending on the customermix, we will have a greater range of specialtygifts in Airside 4. We currently have specialtycosmetic brands like MAC and Kiehls in Air-side 4. Were exploring options to enhance orsomewhat modify the range over in Airside1, particularly with the Brazilian PAX that arebeginning to grow significantly there.JP:The general rule is that we look at the pas-senger mix and do an analysis of that passengerprofile. Were able to tap into global databasesto understand what they buy. We have our ownexperience here in North America but wecan also tap into a global database of infor-mation. We then design our assortmentsaccordingly.JM: Because its a flexible environment any-way, we occasionally revisit and make adjust-ments accordingly.

ADF:Youre quite bullish on your sales fore-casts. Can you tell us a bit about what fac-tored into your calculations?JM: When we arrive at our sales estimates thereare some elements that are proprietary to us,

but another big factor is what the airport istelling us in terms of their international pas-senger volume growth. What are they tellingus in terms of the mix, and so on? A good por-tion of our sales estimate is based on whetherthe airports estimates come through.If we get the volumes and the mix that we

expect to get based on the passenger infor-mation provided by the airport administra-tion, were quite comfortable in our estimates.However, again, its a moving target becauseas we know, things can change. We think itsan achievable goal, but it should be kept inmind that the sales forecast is based on theassumptions that we had at the time of the bid.

ADF: I understand youll be including aspecial American whiskey section at the Air-side 4 store. Can you tell us about that?JM:The American whisky section will includea number of brands, but the predominantbrand featured will be Jack Daniels, which is thestrongest in the category and the one that is par-ticularly appealing to the British passenger. JP:Well have at least two full back walls forpersonalization and a floor unit for adjunctmerchandise such as gifting, which we havedone at some of our other locations as well.This is the first of what well do as we start toexpand some of our areas. Its the first categorythat we saw the opportunity to work with.

ADF: Is it fair to say that the recentlylaunched Sinatra Select will play a role in thisinitiative? Can we expect any big promotionsor activations in relation to the variant?JP:We will certainly be including Jack DanielsSinatra Select as it becomes available and weintend to give some promotional focus tothat as well. Its a high-profile, high-ticketitem. Weve already seen exceptional resultsin Las Vegas when the variant launched.

ADF: All in all, it seems youre happy withthe overall project, despite the gate assignmenthiccupJM:We know that the administration is verypleased with the buildout. It exceeded theirexpectations and were very happy with it as well.We know that there is some fine-tuning that weregoing to do now that we have more informa-tion as things have changed. Its a continuingstory that is constantly evolving and we have toadjust our business based on the passenger vol-umes and the mix going through the airport. JP: Were very excited with this opportu-nity. The initial business that weve seen is veryencouraging. Were looking forward to grow-ing with the Orlando Airport Authority overthe next seven-plus years.

The Airside 1 store at Orlando InternationalAirport measures 243 square meters

premium section; and Beyonce, Shakira and Lady Gaga taking thetop spots in lifestyle fragrances.

In the liquor category, whisky, rum and vodka saw strong per-formance in 2012 at Top Brands stores. Popular names includedJohnnie Walker, Buchannans, Chivas Regal and Old Parr in whisky;Flor de Caa and Bacardi in rum, with Zacapa taking the top spot

in the premium rum segment; and Absolut,Stolichnaya and Finlandia performing well invodka, with Grey Goose showing strong growthin the ultra-premium vodka segment.

Building the businessIn line with our vision of offering shoppers thehighest standard of service, which includes in-store innovation and technology in addition tounmatched staff interaction, weve implementedan aggressive renovation plan to upgrade theimage of our stores, Ameijeiras explains.


BY RYAN WHITE

Top Brands

Juan Ameijeiras, Managing Director of Latin American & Caribbean Duty Free, Top Brands

The fragrances section in Top Brands El Salvador operations

Biggerand better

or the fifth consecutive year in 2012, Top Brands Inter-national continued its double-digit growth trend,Juan Ameijeiras, Managing Director of Latin Ameri-can & Caribbean Duty Free at Top Brands, tells Amer-icas Duty Free. Just as important as the impressive fig-

ures posted at the operators El Dorado-branded duty free stores isthe fact that the company exceeded its objectives for the year and dou-bled volumes in a number of popular duty free categories.

In terms of bestsellers, fragrances and spirits continue to be thestrongest categories. While Ameijeiras notes that fragrance saleswere really across the board in 2012, he does point to Chanel, Car-olina Herrera, Bvlgari and D&G as being strong luxury brands;Paco Rabanne, Hugo Boss, Lacoste and Mont Blanc doing well in the

FTop Brands continues showing year-on-year organic growth as it expands the well known El Dorado Duty Free name to new markets

In the liquor category, whisky, rum andvodka saw strong performance in2012 at Top Brands stores; picturedare the El Salvador operations

A render of Top Brands upcoming Fragrance store in Chil

Top Brands


A render of one of five Top Brands stores upcoming in Chil

A panoramic view of Top Brands current operations in Chil

El Dorado Duty Free stores in Chil s Zona Franca de Iquique(ZOFRI) in February of this year. The stores measure 250 square metersand offer products in Liquor, Chocolates, Watches, Sunglasses, Healthand Beauty and Fashion Accessories. Also recently opened under ElDorados new luxury store format is a 140-square-meter store inCabo San Lucas. The Mexico locale is a port store dedicated to ser-vicing largely high-income American and Canadian cruisers. Top Brandstells us that more than 350 cruise ships and 700,000 tourists per yearvisit Cabo San Lucas.Top Brands is also currently in the process of opening new stores

in Uruguay on the border with Brazil. The first of the stores isexpected to open in June of this year.

Glass half full With regard to the economic outlook for Latin America in general,Ameijeiras says that hes optimistic. Weve shown continued growthfor a number of years now and forecasts for the region are still pos-itive. Panam and Chil specifically have emerged as the Latin Amer-ican countries with the most optimistic prospects, while moderategrowth is forecast for Mexico and El Salvador. Finally, most other LatinAmerican countries are forecast to grow this year at generally the samerate as they did in 2012.In line with the above, Top Brands has an aggressive regional

expansion plan. In addition to the three new stores opened in Chil,the operator was awarded five more new stores in ZOFRI. Locatedon the seventh level of the mall, they will measure 400 square meterseach and are expected to be inaugurated in December of this year. In combination with new store openings and renovations, Top

Brands will focus on maximizing spend per head at its stores throughstaff training, new product launches and promotions that add valuefor consumers. In fact, Ameijeiras tells us that Top Brands is currentlyin talks to list a number of new brands at El Dorado Duty Freestores, but declined to give specifics until the details have been ironedout. He did tell us, though, that given El Dorado Duty Frees alreadystrong product mix, working to maximize sales of existent productsin the stores will also be an area of concentration.

Adding to the teamJuan Ameijeiras joined the Top Brands team in August of 2012,working in the capacity of Managing Director of Latin American& Caribbean Duty Free. He was tasked with the design of a strate-gic expansion plan. Indeed, given the new store openings in late2012 and those planned over the course of the next two years,its clear that the plan is now in full effect.

Ameijeiras has more than 23 years of international experience,having held various key roles with Revlon Overseas, including Gen-eral Manager of Exports for Latin America & the Caribbean.

Weve already gained significant ground at Top Brands inexpanding the well known El Dorado Duty Free name to new mar-kets, says Ameijeiras, and Im looking forward to continuing tosustainably grow the business, ensuring that Top Brands main-tains its reputation as a responsible, results-oriented travel retailoperator

We currently operate 31 stores in six countriesChil, El Sal-vador, Panam, Mexico, Puerto Rico and Belize, he concludes.Weve got aggressive plans to expand our presence into addi-tional markets over the short term.

The layout of many El Dorado Duty Free locations has already beenmodernized, and the operator plans to have the new branding imple-mented across all locations in the next 18 months. First on the listwill be the companys stores in El Salvador International Airportthis year, with renovation work in other markets expected to be fin-ished in the first half of 2014. The renovations, says Ameijeiras, offerboth shoppers and supplier partners exciting new environments.New displays and different options for showcasing brands have gonea long way toward creating a sense of excitement on the shop floor.In the stores that have already been renovated, weve achieved a

significant impact, Ameijeiras tells us. Things are much more inter-esting for travelers and brand partners alike.On the topic of new stores, Top Brands inaugurated its first three

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mericas Duty Free learns from a number of Latin American operators that whilegrowth was still the buzzword in 2012, year-on-year increases were generally moresubdued. Two main concerns that came up in this years discussions with SouthAmerican operators included the stability of the Brazilian Real and Argen-tineans spending less when traveling outside the country because of government

policies and the relative value of the Argentinean Peso. More to the north in Central America and Mexico, business appears to be humming along,

and Latin America as a whole is still performing well when compared to the rest of the world.The good news for South America is that with the World Cup and the Olympics expectedto bring a slew of sports fans to Brazil and neighboring countries, duty free sales the regionmay be on the upswing again sooner rather than later..

A

Leveling outBusiness in Latin America continues to grow,albeit at a slower pace, as operators opt toinvest in new stores and renovations BY RYAN WHITE

Latin America Report


Bright Star regularly revises its product mixas part of its annual action plan, swapping

out underperforming names for hot newbrands or tried and true favorites

P&C and promotion in ParaguayFor Bright Star Duty Free, sales growth in 2012 climbed to 10%above 2011 statistics. Trade Manager Antonella Nuovo tells us thatalthough these numbers are certainly respectable, things could havebeen even better if it werent for a number of circumstances beyondthe operators control.The devaluation of the Real, trade restrictions in Argentina and

Pluna Airlines closure affected us during the second semester of2012, she explains. Nonetheless, looking at our overall results for2012 we did well, especially considering the fact that 2011 was a par-ticularly good year for us.In terms of categories, its no secret that one of Bright Stars major

concentrations is P&C, and Nuovo tells us that the category once againoutperformed last year. Dolce & Gabbana, Dior, Calvin Klein and Chanelwere top sellers in Perfumes, while Lancme, Clinique and LOcci-tane piqued the interested of Cosmetics consumers.Of course, our objective is to always

continue innovating and offering newoptions to travelers, Nuovo explains. Assuch, a number of new brands were intro-duced last year to a very good response,including Burts Bees and H2O.Another major part of Bright Stars

promise to keep things interesting forpassengers is regular promotions. In

December, for example, the operator gave shoppers a free fragrancewith the purchase of US$150 or more in store. The objective was toraise the average basket and Nuovo says that results were heartening.Weve got an important project in the works for 2013 that will see

our stores at Silvio Pettirossi Airport increase in size as a means of mak-ing them more easily navigable and bringing more brands into the mix,Nuovo explains, although she notes that details arent yet available.Bright Star regularly revises its product mix as part of its annual

action plan, swapping out underperforming names for hot newbrands or tried and true favorites. With the renovations and theresultant new space, Nuovo tells us that this yearly activity will be kickedup a notch or two in 2013.By the time ASUTIL and TFWA WE come around well surely

have more surprises to share with you, both in terms of products andrenovation news, hints Nuovo.

The devaluation of the Real, traderestrictions in Argentina and PlunaAirlines closure affected us duringthe second semester of 2012.

Antonella Nuovo, Trade Manager, Bright Star

New concepts in Latin America

www.dutyfreemagazine.ca THE AMERICAS DUTY FREE & TRAVEL RETAILING 45

At press time World Duty Free Groups (WDFG) full year 2012sales statistics werent available, but to the end of the thirdquarter of last year the business in Latin America was seeing dou-ble-digit growth over 2011. In terms of consolidated figures, theoperator finished the third quarter with a year-on-year salesincrease of 11.5%.

While other regions of the world may see larger monthly oryearly fluctuations in the duty free categories that are popularwith travelers, bestselling brands in WDFGs Latin American busi-ness arm tend to be rather predictable. They include such sta-ples as P&C, Spirits, Tobacco and Confectionery, says NancySantarelli, Head of International Operations LATAM at WDFG.

In terms of popular brands, the list reads like a whos whoin each respective category, including Este Lauder, Parbel,Chanel, Dior and Procter & Gamble in P&C; Diageo and Bac-ardi in spirits, plus destination-driven liquors such as tequila in Mex-ico, pisco in Peru, wine in Chile and rum in Jamaica; Philip Morris,BAT and JTI in tobacco, as well as Imperial tobacco in destinationssuch as Mexico, where large numbers of British travelers tend tovacation; and Kraft, Cadbury and Ferrero in confectionery.

Weve also noted an important new trend in destination-relatedconfectionery items, says Santarelli. This runs across all of the LatinAmerican countries in which we operate.

And on the topic of up and comers, leather goods are also on theupswing, with travelers searching out brands such as Longchamp, Sam-sonite and Kipling. Finally, a trend being noticed across the indus-try is an increasing appetite for electronic items. Its no surprise thatin this category Apple takes the top spot.

In terms of new stores, November of last year saw two new loca-tions open, one arrivals and one departures, at Los Cabos Airport inMexico, thereby reinforcing WDFGs leading presence at the airportsince 2000. Furthermore, travelers are now reaping the benefits of acompletely renovated Fragrances section in WDFGs Sangster Airportstore in Montego Bay, Jamaica.

Upcoming projects include the complete renovation of the depar-tures stores in Terminal 2 at Cancun Airport, which will see the retail

space double in size. WDFG is also planning to open the first stand-alone MAC store in a Latin American airport at Cancuns Terminal3. The location is expected to measure 55 square meters. The oper-ator is hoping to roll the brand out in other Latin American coun-tries in the future, in addition to introducing other exclusive brandsto the region. Finally, Santarelli says a new arrivals store is set to beopened at Sangster Airport.

Given WDFGs plans for its business in Latin America, its clearthat the company is bullish when it comes to the potential of the regionat large in 2013. We asked Santarelli for her specific opinion on somekey Latin American countries.

In 2012 we secured the duty free concessions in Belem Airportin Brazil. Its a small airport but very important for us as it allows usto plant the seeds for further growth in the country, she explains.Brazils importance for travel retail will only increase in the futureas the World Cup and Olympics come to the country.

Were also hoping for good market performance in other coun-tries where we have operationsMexico, Peru and Chile, for exam-ple, Santarelli continues. The case can be made that these countrieswill see continued growth given relatively stable economies, lowinflation and also low unemployment rates.

The tasting bar at Los Cabos Airport in Mexico; as can be expected,tequila is a favorite purchase for tourists passing through the airport

WDFGs bestselling categories in LatinAmerica include such staples as P&C,Spirits, Tobacco and Confectionery

Latin America Report


2012 was a good year for Attenza Duty Free, says Erasmo Orillac,CEO of Motta Internacional, owner of the Attenza Duty Free Storesin several airports of the region. In general passenger traffic in theairports where we operate grew in line with projections.

P&C and spirits, says Orillac, are always the companys bestsellers. Fur-thermore, with two new storesone departure and one arrivalsinBogotas El Dorado Airport and a passenger base ready and willing tospend, hopes are high for 2013 across all the major duty free categories.

Motta also recently opened two new Attenza Duty Free stores atthe New Quito International Airport in Ecuador. One of the new storesis a walkthrough location measuring 886 square meters. Located justafter the immigration counters for international travelers, the oper-ator has access to both departing and transiting passengers. A secondsmaller store measuring 266 square meters is located in the interna-tional arrivals section.

The New Quito International Airport is described as one of akind in the region by virtue of the fact that it is the first in South Amer-ica with a completely new infrastructure. This results in higher traf-fic and larger airplane capacity for this part of the continent. The newairport opened in the first quarter of 2013.

We are very excited about our new project in Quito after 10years of absence, Orillac said. Attenza Duty Free brings our distin-guished shopping experience to all the passengers traveling through

this new airport, which serves Quito and will help to grow tourismand business travel to Ecuador. We are happy to expand our networkof Attenza stores to this new location where we can offer our clientsour service and our products.

While our branding is immediately recognizable to travelers, saysOrillac, where we really set ourselves apart from the pack is in cus-tomer service. Whether in Bogota, Quito or any of our other loca-tions, making sure our clients receive the best treatment is para-mount to Attenzas success.

Coming back to Quito

The storefront of Mottas new Attenza DutyFree store in Bogotas El Dorado Airport

Whether in Bogota,Quito or any of ourother locations, mak-ing sure our clientsreceive the best treat-ment is paramount toAttenzas success.Erasmo Orillac, CEO, Motta Internacional

More of what they want

Strengthening bonds in Brazil

www.dutyfreemagazine.ca THE AMERICAS DUTY FREE & TRAVEL RETAILING 47

Shopping China is another operator that has felt the pinch related tothe devaluation of the Real in 2012 and the lingering effects of the eco-nomic crisis. The company notes that Brazilians, its bread and butterwhen it comes to shoppers, are still purchasing, albeit at a more sub-dued level, and sales did increase slightly last year over 2011. All of our stores are focused very heavily on Brazilian cross-bor-

der travelers, says CEO of Shopping China Felipe Cogorno. The goodnews is that the Real appears to have stabilized at this point, althoughits value is still down from 2011. We feel that Brazilians will continueto be high spenders this year as their fear of purchasing subsides. As

such, we expect to continue growing as we have in the previous years.As can be expected given its clientele, many of Shopping Chinas

top selling brands are suitably high end. Cogorno notes that theMichael Kors and Tommy Hilfiger brands are selling well in watches;Versace and Rayban are popular sunglasses brands; Whyte & MacKay,Dewars and Grey Goose are the spirits brands of choice; and Kit Kat,Toblerone, M&Ms and Lindor reign in the confectionery category.In terms of renovations, Shopping China is still working on out-

fitting the new space that was added to its flagship store in Pedro JuanCaballero last year. As can be expected, filling the additional 7,000square meters of space that is now available there is a big task, espe-cially considering the fact that the operator isnt content to put just anyold brands there.We know our clientele extremely well given our long history on

the border with Brazil, explains Cogorno. As such, were very exact-ing in what we list in the stores. Its not just a matter of filling the newspace at the flagship store; its a matter of making sure the mostattractive brands across categories are there and displayed in a man-ner that suits their status.Additionally, a good indication of just how many people pass

through Shopping Chinas flagship store on a given day is the fact thatthe company last year added 800 new parking spaces. While very dif-ferent from products and store renovations, this is still a very impor-tant part of our customer service commitment, explains Cogorno.Objectives for this year include continuing construction on a

planned store in Uruguay measuring an impressive 40,000 square metersand introducing new brands Shiseido, Azzaro, Thierry Mugler andMichael Kors purses in accessories. Finally, jewelry is a growing cat-egory that Shopping China currently doesnt deal in, but this year thecompany has plans to start carrying such brands as Majorica, Guessand Michael Kors, among others.We want to continue providing our customers with more of

what they want, concludes Cogorno. If this means larger stores, welldo it. If it means adding different categories, well do it. For us, thekey to continued growth is listening to our customers and goingabove and beyond in our efforts to give them what they want.

We know our clien-tele extremely wellgiven our long his-tory on the borderwith Brazil.Felipe Cogorno, CEO, Shopping China

Its clear that selling to Brazilians is foremost on the minds of many oper-ators in South America. Earlier this year, Dufry announced a major devel-opment that will see its dominant position within Brazil continue withthe renewal of its concessions contract at Guarulhos until 2016.Dufry currently operates eight duty free shops at the airport with a

total area of 4,500 square meters of retail space. The agreement also fore-sees that Dufry will enlarge its retail space by 2,100 square meters. Thenew operations are expected to start in the second quarter next year. Theexpansion of the commercial area will be located at the arrival and

departure area of Terminal 2, adding almost 50% more retail space toDufrys activities at this airport. The expanded retail space will allow Dufryto further enhance its comprehensive range of products, and offer its clientsinternational bestselling brands and a unique shopping experience.Julian Diaz, CEO of Dufry Group, commented: We are very pleased

about this new agreement with Guarulhos International Airport. Therenewal allows us to further develop the business at Sao Paulo airportand with the new space we will be able to generate additional revenuesvery quickly. The renewal of our duty free contracts is a great platformto build on the future cooperation with Guarulhos International Airportand we are excited to develop the new space together with the airportsteam. The contract also secures and reinforces our position in Brazil andillustrates the quality of our operations, where we have developed astrong organization with deep knowledge of the Brazilian consumer.Taking a broader view, we are privileged to have the opportunity

to play an important role in the build-out of the Brazilian infrastructure,Diaz adds. The country enters an era of significant investments ininfrastructure to support and promote accelerated economic growth.In this context, we are confident that our experience and knowledgeof the travel retail market enables us to work closely with GuarulhosAirport reaching its full potential, offering an even better shoppingexperience to its passengers, and we are confident that this agreementis the beginning of a long-standing partnership.

An aerial view of Shopping Chinas giganticflagship store in Pedro Juan Caballero

Dufrys renewal atGuarulhos will run to 2016

The theatrical element

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