www.thelatinamericareport.com June 2013

News and views on the airport, airline and travel retail sectors in the region

The Latin America Report

The builder

By Wendy Gallagher

Everyone remembers something impor-tant they did for the first time.

For some it was their first job, for others, itwas their first time driving or flying.

However, a milestone first for José LuisDonagaray couldn’t have come on a worse day.

On the job only a few months as SecretaryGeneral of Asutil (South America Duty FreeAssociation), one of his most important dutieswas to ensure a successful conference.

The year was 2001. Things went smoothlythe first day of the conference in Rio deJaneiro. On the second day, September 11, theworld changed. As conference attendees wentto have lunch, news broke that airplanes hadflown into the twin towers in New York City.

“It was a mess,” recalls Donagaray. The con-ference was cancelled and attendees struggledto make their way home over the next fewdays.

Fortunately the next 12 years as the head ofAsutil have seen smoother waters for Dona-garay.

See Page 4

The first conference lead by Asutil Secretary GeneralJosé Luis Donagaray 12 years ago couldn’t havecome at a worse time. However, over the past decadeDonagaray has grown conference numbers at asteady pace, each year outperforming the prior.

Airlines/Airports

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AeromexicoStarting on July 15, Aeromexico

will operate a second flight fromSan Francisco to Mexico City.

The airline is also adding newroutes to Mexico, from Los Ange-les to La Paz, Loreto, Cancun andHuatulco.

Aeromexico also announces itsnew flight Las Vegas - Puerto Pe-nasco - Hermosillo that will beavailable starting June 20 with twofrequencies a week.

Asur

Mexican airport operator GrupoAeroportuario del Sureste (ASUR),announced that total passenger trafficfor May 2013 increased by 12.7%

when compared to May 2012.Cancun International Airport saw

an increase in international passen-gers of 18.3% in May 2013 overthe previous May. Huatulco inter-national airport saw passengernumbers almost triple during thesame time period to 3,242 this pastMay from 1,208 in May 2012.

JetBlue to Lima

Florida-based carrier JetBluewill begin flying to Lima from FortLauderdale beginning Nov. 21.

“With Lima, our first destinationin Peru and the southernmost desti-nation in the network, we are confi-dent in our penetration of SouthAmerica,” said Scott Laurence,Vice President, network planningfor JetBlue.

Destinations in Latin Americaand the Caribbean now make up al-most one-third of JetBlue’s routenetwork.

Etihad lands in São PauloEtihad Airways, the national carrier of the United Arab Emirates, has

launched non-stop flights between Abu Dhabi and São Paulo, the air-line’s first destination in South America. 

The first flight touched down at Guarulhos International Airport inSão Paulo on June 2. The airline will offer the service three times aweek.

The new Brazil service marks Etihad Airways’ entry into its sixthcontinent and an important move in increas-ing its presence across BRIC high growthnations, says the company.

Etihad Airways’ first ever commercialflight (to Beirut) 10 years ago used a wet-leased aircraft, operated by a Braziliancrew.

Several of those first cabin crew and pi-lots are still working with the airline, saysthe company.

Carrasco welcomes AirEuropaSpanish carrier AirEuropa made its inaugural flight from Madrid to

Montevideo last week.The new triweekly flight is a welcome relief for Carrasco Interna-

tional Airport, which has suffered a decline in passengers sinceUruguay’s national carrier Pluna went bankrupt last year.

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News

With an MBA in Business Ad-ministration and Executive Edu-cation from Harvard University,Donagaray has seen associationand conference attendee numbersgrow each year. This year, morethan 300 atten-dees will gatherat the confer-ence in PuntaCana, Domini-can Republic.

In 2006,Asutil partedways with pub-lisher RavenFox (who hadpartnered withAsutil on theconferences) and began to runthe event on its own.

“We started networking timeduring the conference,” saysDonagaray. In 2008 the associa-tion purchased office space inMontevideo.

The growth in the number ofattendees at the conference “islike a tank,” says Donagaray,adding, “It’s slow but solid.” Hesays one of the greatest benefitsof the event is the ability for sup-pliers to meet buyers fromthroughout the region, in threedays, in one location.

However, he says there isroom for improvement for Asutil

members. “We need to bringmore benefits to our members.One of the problems is the coun-tries are very far apart so it’s dif-ficult to see the members often.”

One item being considered is abi-monthly newsletter, whichwould provide economic data to

members. However, Don-

agaray says “One of the greatdifferences” of Asutil, comparedto other associations, is having anew president elected every twoyears, bringing about fresh ideas.As well, the conference venuechanges each year.

Asutil’s day-to-day business,as well as conference planning, iscarried out by Donagaray (whoalso works full time as Market-ing Director for PeugeotUruguay), Office AdministratorInés Sisto Patrón and part-timeconference co-ordinator PiaSarubbi.

“The conference planning isnot on auto pilot. We have to find

a location, get sponsors andmuch more,” he says.

Although a lot of work, Dona-garay says he enjoys every con-ference. “I love the people. Ienjoy sharing their experiences.For me, I’m very pleased whenwe have good speakers. We like

to try dif-ferentthings.”

How-ever, Don-agaraywarns thathe reviewsall presen-tations be-fore the

speaker is allowed to take thestage. “If your presentation isjust advertising, I’ll stop thepresentation,” he says, adding theguest speakers are there to edu-cate and inform attendees.

In general, Donagaray saysconference attendees providepositive comments about theirAsutil experience.

With 12 years of running theassociation, Donagaray has noplans to step aside. “I love mywork,” he says.

And judging by the growth ofthe conferences, now attractingmore than 300 people fromaround the globe, the love isbeing returned.

Growth of the Asutil

conference is like a tank.

‘It’s slow but solid.’-- José Luis Donagaray

Asutil

From Page 1

More than 300 delegates from around the world will converge in Punta Cana,Dominican Republic for the Asutil conference June 12-15.

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News

Heineken has expanded its World of Beer con-cept in Uruguay with three new displays in RioBranco and Chuy in cooperation with KraudalTrading. The new initiatives are exhibited in twokey retail players, Neutral Free Shop and AngraFree Shop. Heineken’s World of Beer enables retailersto customize the offer according to the shopper’s pro-file and adds value by creating an engaging in-storedestination, encouraging trial and purchase.

Additionally, rollout of Heineken’s Taste the Worldconcept continues with Sagres and Desperados inSouth America, spotlighting their world class beers andincreasing consumer trial supported by high visibilitypromotional units. New initiatives are scheduled forthe remainder of the year with world class offerings,

including Sol (August), Czech origin Krusovice Impe-rial (October) and Aflligem blond (December), anAbbey beer brewed according to ancient monastic tra-ditions.

Heineken recently expanded its team in SouthAmerica as its popularity grows. It aims to double itsbusiness in South America, following a 6% growth inThe Americas from its base in 2012.

Ernesto Milan, Heineken’s new duty free sales man-ager for South America, will be present at the Asutilconference.

Heineken Heineken

expandsexpands

world beerworld beer

concept inconcept in

UruguayUruguay

The recent DFNI Charity Ballin London raised more than US$450,000 for the London SupplyFoundation.

The Argentinean operator runsa charity that helps improve edu-cation in the region. The moneywill be used to build the MotherTeresa of Calcutta NurserySchool, part of the EducationalProject in Barrio 1º de Mayo,Puerto Iguazú, in Argentina.

DFNI also hosted its Global

Awards for Travel-Retail Excel-lence. Among the winners wasStarboard Cruise Services chosenby the industry as the BestCruise/Ferry Retailer of the Yearand Scorpio Worldwide, who wonthe award for Supplier of theYear. Best Inflight Travel Retailerof the Year went to DFASS. BestNew Product Launch wasawarded to Neroli Portofino byTom Ford from Estēe LauderTravel Retailing.

Event benefits London Supply school

London Supply President TeddyTaratuty.

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IATA airline forecast improves;Latam carriers remain solid

The International Air Transport Association (IATA) upgraded its global outlook for the airline industryto a US $12.7 billion profit in 2013 on $711 billion in revenues. This is $2.1 billion better than the $10.6billion profit projected in March of this year and an improvement on the $7.6 billion profit generated in2012.

Latin American airlines are expected to post a $ 600 million profit, unchanged from the previous fore-cast. Passenger demand (9.8%) and ca-pacity (7.8%) growth are second only tothe Middle East. This growth is boostedby the effects of buoyant trade andother business flows with Asia andNorth America.

Worldwide, margins remain weak,says IATA. On revenues that are ex-pected to total $711 billion this year, thenet profit margin is expected to be1.8%. Indicative of the characteristi-cally razor thin profits of the airline in-dustry, even this small margin willmake 2013 the third strongest year for airlines since the events of 2001.

“This is a very tough business. The day-to-day challenges of keeping revenues ahead of costs remainmonumental. Many airlines are struggling. On average airlines will earn about $4 for every passengercarried—less than the cost of a sandwich in most places,” said Tony Tyler, IATA’s Director General andCEO.

Meanwhile, the outlook for global economic growth has deteriorated slightly since March as the reces-sion in Europe proves to be deeper than expected. The beneficial impact of lower fuel prices is expectedto offset the adverse effect of weaker economic growth, providing a moderate boost to industry prof-itability, says IATA.

“Generating even small profits with oil prices at $108/barrel and a weak economic outlook is a majorachievement. Improved performance is what’s keeping airlines in the black. Airlines are putting morepeople in seats. For the first time in history, the industry load factor is expected to average above 80% forthe year. And with ancillary revenues topping 5%, it is clear that airlines have found new ways to addvalue to the travel experience and to shore-up the bottom line,” said Tyler.

A total of 3.13 billion passengers are expected in 2013 —the first time in history that passenger num-bers rise above the three billion mark.

‘On average airlineswill earn about $4for every passengercarried—less thanthe cost of a sandwich in most places.’

Tony TylerIATA

News

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News

By Wendy Gallagher

Botran’s entrance into the developing premiumwhite rum category with Reserva Blanca is alreadymaking noise.

Produced by Industrias Licoreras de Guatemala,“The feedback has been fantastic,” says FrankQuiñones, Botran Global Commercial Director.

Quiñones says the spirit is being used at “veryhigh end places” in London and throughout the UK.“Once people try it, they fall in love with it,” hesays.

However, don’t be fooled by the price (US $18for 750 ml), says Quiñones. “We are premium be-cause of what we are, not because of pricing.”

Reserva Blanca is making its way into the travelretail circuit and is already being sold in CentralAmerica.

Feedback from buyers at the IAADFS duty freeshow in Orlando was positive, says Harald JensenBotran, director at Industrias Licoreras deGuatemala. “The force behind the Botran productsis the family. There’s always someone in the familyout supporting the brand.”

Attendees at the Orlando show had the uniqueopportunity to blend a personalized version of Bo-tran rum as the company shipped several barrels ofvarious aged rums to the event. “It’s the first timeBotran rums have been blended outside ofGuatemala,” says Jensen Botran.

Botran white rum

making a splash

Attendees at the Orlando IAADFS show were in-vited to blend their own custom bottle of Botranrum.

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News

By Wendy Gallagher

Don’t bother ask Jassil Vil-lanueva Quintana, Brugal’sfirst female Maestra

Ronera, what her favourite fra-grance is. She doesn’t like per-fume.

And that should come as no sur-prise as the young Dominican pro-tects her sense as smell as closely asa baseball player protects his throw-ing arm.

Villanueva Quintana is the rummaker’s youngest and only femalemaster blender. Her entry into theprestigious category comes at a timewhen the company celebrates its125th anniversary.

Villanueva Quintana describes herrole of master blender as “an amaz-ing experience.” She has had variousroles in the company but alwaysknew that she had a gift for scent.“Aromas are stored in your brain,”says Villanueva Quintana. Over theyears she continued to practice im-proving her knowledge of variousscents and eventually took the Maes-tra Ronera test. Male counterparts,including family members, also tookthe most recent test, but Quintanawas the only one to pass. “A masterblender must have one of the bestnoses,” she says.

Family members were thrilledwith her accomplishment, and Vil-lanueva Quintana says everyone issupportive of her new role.

In fact, Villanueva Quintana saysa new trend is starting worldwide asmore women become masterblenders.

Villanueva Quintana continues tolead tourists on tours through thecompany factory located in PuertoPlata. She says people, especiallycollege students, are “very sur-prised” when they discover she isone of the company’s masterblenders. “They think I’m just thetour leader,” she laughs.

Last year she was involved in theproduction of Papá Andrés rum, thelimited edition ultra-premium rum,with only 500 bottles produced.

Named after Brugal’s foundingfather, the rum was made from a pri-vate reserve of casks that were morethan 100 years old.

The Edrington Group distributesBrugal rums in travel retail. JuanCampos, Edrington’s Brand Devel-opment Manager, Americas, says2013 is an exciting year for Brugal,with the anniversary celebration, as

well as new packaging for all the Bru-gal rums. “We’re trying to make thebrand more premium,” says Campos.

Also this year, Brugal EspecialExtra Dry will be launched. Aged be-tween 2-5 years, Campos says al-though a white rum, it’s uniquebecause of its triple filtering and he’sconfident it will be well received as apremium rum.

Over the next few months a newGran Reserva XV with a sherryblend, will be launched in travel re-tail.

She knowsShe knows

her noseher nose

Jassil Villanueva Quintana, Brugal Rum’s youngest and only femaleMaestra Ronera.

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People

Swedish native Ylva Binder (neePersson) has re-entered the travelretail sector as founder and ownerof Rhuby, a Swedish all naturalrhubarb liqueur.

Binder previously held key mar-keting positions with WilliamGrant & Sons and Bacardi.

Now a mother of al-most four-year-old twins,her 25 years of experi-ence in travel retail haschanged greatly.

While with Bacardi,she fondly rememberslaunching Grey Goose inthe presidential suite atBurj Al Arab, Dubai, ar-riving via helicopter.

Now, on her own with her newcompany, she recently found her-self carrying 40 kg of samples onthe underground in NY – havingmet 160 different outlets in three

weeks. “The beauty is the net-

work and experience Ihave built up over theyears. I call them angels.People spanning across20+ years of my careerhaving helped enor-

mously andopened doors Iwould otherwisenot have beenable to open up. Ifind guestrooms along theway and the low-cost air-lines make it possible to beinternational, ensuringcosts are kept at a mini-

mum and all efforts placed onbuilding Rhuby.”

Last year Rhuby won Best NewProduct Introduction from DrinksBusiness UK.

“The domestic market for spirits

does not offer thesame premium trad-ing environment thisindustry takes forgranted. The mood ofthe consumers allowsfor differentiation. Iam a firm believer inthe channel’s abilityto create brands withglobal cache. Havingpreached innovation,

luxury and premiumi-sation for the channel for yearsRhuby is my response with all theintricacies and innovation, lendingitself to gifting and that special oc-casion travellers seek.

“I was often quoted comparingthe cosmetics and fragrance busi-ness to spirits, meaning the spiritscategory had stagnated. I hopeRhuby proves otherwise andbreaks out of this mould.”

Ylva Binder

Binder returns to TR with Rhuby

Patrón Spirits announced that DaveWilson has joined the company as Pres-ident of its international operations andGlobal Chief Operating Officer, effec-tive June 10.

Wilson replaces John McDonnell,who lead the company for the past eight

years, makinggroundbreak-ing achieve-ments withPatrón in thepremiumtequila sector. It’s reported Mc-Donnell left the company to pur-sue other opportunities.

“While we welcome Dave toour team, we’re very sad to bid

farewell to John. He has been a driving force in buildingPatrón in travel retail, and in domestic markets across theglobe, and he’ll be greatly missed,” says Greg Cohen, Pa-trón Director of Communications.

Reporting to President and Chief Executive OfficerEd Brown, Wilson will be responsible for the day-to-

day worldwide operations and manage-ment of the company.

Wilson joins Patrón Spirits fromBrandmuscle (Centiv) where for the pastseven years he has served as President ofthe company’s beverage alcohol group.He began his 33-year career in the spiritsindustry at Joseph E. Seagram & Sons,where he held various positions in pro-duction, finance, and sales and marketingmanagement. After Seagram, Wilsonspent nine years in executive roles at Na-tional Wine and Spirits, and at Southern

Wine & Spirits.“Dave’s tremendous experience and leadership will

help us grow the future of this company and our brands,and I’m thrilled that he is joining our team,” said Brown.

Added Wilson, “I am sincerely honored to be joiningPatrón Spirits, and I appreciate the opportunity, challenge,and confidence that Ed Brown has presented. I am excitedto get started, and to meet with our employees and part-ners throughout the world. This is a great company and Iam proud to be associated with this management team,and representing these iconic brands.”

Wilsonnew

PatrónCOO

Dave Wilson

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People

By Wendy Gallagher

Mark Lewis-Jones is a perfect example of thephrase ‘never say never’.

When he first moved to Panama in 2010 he had no in-tention of staying. However, three years later, the ownerof Innova Distributors, which provides travel accessoriesfor duty free stores throughout Latin America, has fallenin love with the country and its unspoiled beauty.

Yet, working in the travel retail industry is not some-thing Lewis-Jones set out to achieve.

He graduated in 1986 with an advanced degree in Exer-cise Physiology from the University of New Hampshirewith aspirations to be an orthopedic surgeon.  However,after many years at university, “I was cold, mentally tired,and pretty near financially broke. I saw an ad in the news-paper that said, ‘See the islands – teach fitness on acruise ship’. Well, I played soccer at university andhad taught fitness and aerobics for several years, so Ithought I’d give it a shot,” he says.

He spent six months in the Caribbean and then re-turned to Boston to begin studying for the MCAT, themedical school entrance exam. But after a few months,Lewis-Jones went back to the Caribbean to work in thefitness/wellness industry, “until I could muster themental fortitude to jump back into several more yearsof university.” After a few years of living in Old SanJuan, an opportunity arose to “promote the duty freestores of the Caribbean to cruise ship guests”.  Hethought, “Why me?  I’m a sports medicine guy, not asalesman.”  But the opportunity and the pay werecompelling, so in 1991, he joined Bill Panoff’s firstgroup of “port lecturers”.  It’s where his travel retailcareer began, and “I’ve never looked back.” Lewis-Jones went on to work for Onboard Media, StarboardCruise Services, Island Companies Cayman Ltd, and

DLC Trading (Hublot, and later Victorinox), before form-ing his own business.

“I never imagined that I would be working in travel re-tail, nor selling travel accessories for a living.  I have tochuckle at myself, assometimes, I feel a bitlike John Candy in thefilm, Planes, Trains,and Automobiles.  

“But you know, Iown the company, andit affords me a verynice lifestyle, withhomes on the Atlanticand the Pacific,though I spend mostof my time inPanama.”

It was 2010 when Lewis-Jones connected with DesignGo, a London-based firm in operation since 1978.  He wasimpressed by a number of qualities including what he de-scribes as the wide range of travel products with clean and

attractive design,clever innovation, andattractive price points,“all of which con-tribute to Go Travel’scompelling viabilityas a high rotation im-pulse buy for travelingconsumers.”

According toLewis-Jones, “Every-one’s travel needs canbe accommodated at areasonable price.

Moreover, given the ever-increasing regulation on bag-gage, and the widespread lack of comfort in the coachclass seats, Go Travel offers an enticing range of productsto help one pack better, and within weight limits, andmake the trip a bit more comfortable with an array ofgoodies like pillows, back supports, foot rests, sleepshades, ear plugs and headphones, just to name a few.”  

In May of 2012 Innova Distributors opened the first GoTravel Kiosk in the Jorge Chavez International Airport inLima, Peru in a joint collaboration of Lima Airport Part-ners, and local Peruvian Distributor, Class Comple-ments/Crepier. “We are currently exploring theopportunity to open two more in major airports in theAmericas,” says Lewis-Jones.

“In the meantime, we will continue to improve ourbusiness processes with existing partners to drive sales ro-tation; add more doors with existing partners; add newpartners to our group of distributors and duty free opera-

tors; and add new and innovative brands and products toour portfolio.

“We’ll have some other exciting announcements forthe 2nd semester of 2013.”

Plans to become asurgeon

interrupted by travel retail lifestyle

Retailers working with Innova Distributors from back left: Sergio Casaretto (Crepier, Peru), Leo Samara (BigBag, Panama), Constanza Montes (Cercano, Chile), Andres Muñoz (Juvenia, Colombia), and Rosario Ramos(Mundo Joven Travel Shop, Mexico). Front row: Mark Lewis-Jones, owner, Innova Distributors.

‘I have to chuckleat myself, as sometimes, I feel abit like JohnCandy in the film,Planes, Trains, and Automobiles.’

--Mark Lewis-JonesInnova Distributors

By Wendy Gallagher

Mark Lewis-Jones is a perfect example of thephrase ‘never say never’.

When he first moved to Panama in 2010 he had no in-tention of staying. However, three years later, the ownerof Innova Distributors, which provides travel accessoriesfor duty free stores throughout Latin America, has fallenin love with the country and its unspoiled beauty.

Yet, working in the travel retail industry is not some-thing Lewis-Jones set out to achieve.

He graduated in 1986 with an advanced degree in Exer-cise Physiology from the University of New Hampshirewith aspirations to be an orthopedic surgeon.  However,after many years at university, “I was cold, mentally tired,and pretty near financially broke. I saw an ad in the news-paper that said, ‘See the islands – teach fitness on acruise ship’. Well, I played soccer at university andhad taught fitness and aerobics for several years, so Ithought I’d give it a shot,” he says.

He spent six months in the Caribbean and then re-turned to Boston to begin studying for the MCAT, themedical school entrance exam. But after a few months,Lewis-Jones went back to the Caribbean to work in thefitness/wellness industry, “until I could muster themental fortitude to jump back into several more yearsof university.” After a few years of living in Old SanJuan, an opportunity arose to “promote the duty freestores of the Caribbean to cruise ship guests”.  Hethought, “Why me?  I’m a sports medicine guy, not asalesman.”  But the opportunity and the pay werecompelling, so in 1991, he joined Bill Panoff’s firstgroup of “port lecturers”.  It’s where his travel retailcareer began, and “I’ve never looked back.” Lewis-Jones went on to work for Onboard Media, StarboardCruise Services, Island Companies Cayman Ltd, and

DLC Trading (Hublot, and later Victorinox), before form-ing his own business.

“I never imagined that I would be working in travel re-tail, nor selling travel accessories for a living.  I have tochuckle at myself, assometimes, I feel a bitlike John Candy in thefilm, Planes, Trains,and Automobiles.  

“But you know, Iown the company, andit affords me a verynice lifestyle, withhomes on the Atlanticand the Pacific,though I spend mostof my time inPanama.”

It was 2010 when Lewis-Jones connected with DesignGo, a London-based firm in operation since 1978.  He wasimpressed by a number of qualities including what he de-scribes as the wide range of travel products with clean and

attractive design,clever innovation, andattractive price points,“all of which con-tribute to Go Travel’scompelling viabilityas a high rotation im-pulse buy for travelingconsumers.”

According toLewis-Jones, “Every-one’s travel needs canbe accommodated at areasonable price.

Moreover, given the ever-increasing regulation on bag-gage, and the widespread lack of comfort in the coachclass seats, Go Travel offers an enticing range of productsto help one pack better, and within weight limits, andmake the trip a bit more comfortable with an array ofgoodies like pillows, back supports, foot rests, sleepshades, ear plugs and headphones, just to name a few.”  

In May of 2012 Innova Distributors opened the first GoTravel Kiosk in the Jorge Chavez International Airport inLima, Peru in a joint collaboration of Lima Airport Part-ners, and local Peruvian Distributor, Class Comple-ments/Crepier. “We are currently exploring theopportunity to open two more in major airports in theAmericas,” says Lewis-Jones.

“In the meantime, we will continue to improve ourbusiness processes with existing partners to drive sales ro-tation; add more doors with existing partners; add newpartners to our group of distributors and duty free opera-

tors; and add new and innovative brands and products toour portfolio.

“We’ll have some other exciting announcements forthe 2nd semester of 2013.”

Plans to become asurgeon

interrupted by travel retail lifestyle

News

Retailers working with Innova Distributors from back left: Sergio Casaretto (Crepier, Peru), Leo Samara (BigBag, Panama), Constanza Montes (Cercano, Chile), Andres Muñoz (Juvenia, Colombia), and Rosario Ramos(Mundo Joven Travel Shop, Mexico). Front row: Mark Lewis-Jones, owner, Innova Distributors.

• In January 2012, InnovaDistributors launchedcommercial activities. • In 15 months, it hasgrown to 231 points ofsale in 14 countries inLatin America. • Clients includeGrupo Wisa (La Riviera),Motta Internacional (At-tenza), UETA Lati-noamerica (DFA),Mannah, Brightstar, andDufry Ecuador.

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People

The International Air TransportAssociation (IATA) announcedthat Richard H. Anderson, CEO ofDelta Air Lines, has assumed his

duties as Chairman ofthe IATA Board ofGovernors.

“The airline indus-try needs a strongvoice to address thechallenges that weface. Under the lead-ership of DirectorGeneral and CEOTony Tyler, IATA hasthat voice. As I take on the Chair-manship of the IATA Board ofGovernors, I look forward to

working closely withTony, with colleaguesacross our industry andwith governments to pro-mote the cause of avia-tion—the vitality ofwhich is essential to thesuccess of global tradeand economic growth,”said Anderson.

Anderson succeeds AlanJoyce, CEO and Managing Direc-tor of Qantas Airways, whose one-year term expired.

Andersonnew IATAchairman

Richard H. Anderson

By Wendy GallagherEditor, The Latin America Report

I just want some help.My once-effective sarcasm seems to have lost

its touch during recent visits to airport duty freeshops in the past year.

In fact, as I write this prior to departing forPunta Cana for the Asutil conference,I’m considering wearing a large signaround my neck that says I NEEDHELP.

Hopefully the staff in the store don’timmediately notice the sign and call 9-1-1before I get a chance to explain.

I’m looking for help with products.It’s not too much to ask.

However, my recent experiences instores have left me a little bewildered.In three separate airports, after waitingto be assisted, I had to approach sales-people who were gathered together chat-ting. Out came my sarcasm. “Excuse me, I reallyhate to interrupt your conversation, but is thereanyone who could help me in the cosmetics de-partment?”

To my amazement, each time the sarcasm in mycomment was not absorbed. One even forgave mefor the interruption! “Oh, that’s okay, we were justtalking,” she replied.

Another apologized for the cosmetic personbeing “gone for the day,” confessing she didn’tknow much about the products, but did offer anyhelp she could. Sorry, but I need the pro to helpme. I wasn’t born with a natural gift for all thingsgirly. I’m more comfortable in ice hockey skates

than high heels. I’d rather carry a baseball bat thana purse. I only wish I was old enough to havetaken part in bra-burning demonstrations in the’60s. Oh sigh, what’s a girl to do without help atthe makeup counter?

My advice to duty free store managers is to en-force a simple rule: When there is even one cus-tomer in the store, staff are free to talk all they

want – to the customer – not amongthemselves. Too often, as I wait pa-tiently for assistance, I overhear dis-cussions of what weekend plans areupcoming, who’s not doing their job,and what is wrong with the company.Not very professional.

I, and thousands of others, am in thestore and it’s a great possibility we’llbe spending money. Staff pounce onme at my local cosmetics store, as theyknow from history that I’m an easytarget. Spend some time showing mesomething new and exciting, tell me

what creams, lotions and potions will restore myface back to that of a 20-year-old, and I’m sold(even though I know it’s an impossible task, I dotake the bait with wishful thinking).

I will forever remember the presentation givenby an executive with the Disney corporation at anAsutil conference a few years ago. The companymotto is to exceed, not just meet, their customers’expectations. It was a compelling presentation anda motto every company should strive to meet.

My expectations of service in duty free storesare not extreme. I just simply want to be noticed,without having to make the first move. Now, backto making that help wanted sign.

Frustrated airport shopper seeks help

Wendy Gallagher

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Viewpoint

By Anne Kavanagh

What makes a great airport experi-ence?

Whenever an airport considers thatquestion it must take into account amyriad of operational and technicalparameters but knows that ultimately,it’s the passenger perspective thatcounts. While an airport managermight (rightly) think a great perfor-mance in Gate Departure Delay,Practical Hour Capacity or OperatingCosts are all contributing to the qual-ity of the experience, thepassenger takes amuch more emo-tional perspective.As such, even run-ning an airport tothe rhythm andpunctuality ofa Swiss timepiecedoesn’t match theeffectiveness ofthe human ele-ment – and retailprovides the best opportunity to makethat vital connection with the passen-ger.

When you ask passengers for theirimpressions of an airport, theirstrongest memories will usually be ofencounters with people, notprocesses. Of course, sometimesthose encounters are negative andthese don’t just stay with the passen-gers. They might be shared ‘live’ onFacebook and with everyone on-board the moment they fasten theirseat belts. However, their most mem-orable experiences are usually thepositive ones. They remember thestaff who went the extra mile, andwith a smile; the security guy whohelped the stressed parent and knewhow to fold a buggy; the terminal as-sistant who didn’t simply point theconfused elderly couple in the direc-tion of Gate 99 but escorted them

right there. Or how about the staffmember at Singapore Changi who,last year helped an elderly Greek ladywhen she missed her connection due toillness? He then also paid for her newticket, kept her in communicationwith her family – and accommodatedher in his home for three days, takingher on excursions around Singaporeuntil she was fit to travel. He becameChangi’s Service Personality of theYear, and there’s no need to ask thelady in question, which is herfavourite airport!

That is an absolutely extraordinary

example but it highlights the coreprinciple of treating the passenger asa guest – a guest you respect, a guestyou do your best to ensure hasa wonderful, memorable time. 

The staff member who goes thatextra mile says ‘we care’; the brokenhand dryer says ‘we don’t care’. Inthe passenger’s mind, the character,qualities and memories of the airportare judged on the quality of this con-versation. The more direct aspects ofthe conversation are developedthrough extensive and highly activeprograms to communicate the airportexperience, including websites, Twit-ter, Facebook and mobile apps and,done correctly, social media is a verypowerful way to share the conversa-tion with the passenger. Best of all,these digital tools are effective frompre-travel to post-travel, including thetime actually in the terminal.

The retail experience should be atrue highlight of any airport experi-ence and it is potentially the singlemost effective touch point that can beused to influence the passenger per-ception of the whole airport experi-ence. The airport’s operationalefficiency simply does not resonatewith the passenger in the way that thehuman encounter does; many ‘tech-nical’ efficiencies (such as punctual-ity levels and turnaround times)are simply expected or simply do notregister with the passenger - but,boy, do they notice these aspects

when things gowrong! Retail is ahuman encounter –people buy frompeople – and retailstaff can reallymake an airport ex-perience special. 

When tenderscome around, travelretailers need toconvince the airport

that they bring something extra to thetable and, with the airports facingever-increasing pressure to deliver abetter experience, the in-store serviceaspect is a great opportunity to pro-vide something out of the ordinaryboth for the passenger and for the air-port. At airports where everyone iscommitted to a high quality passen-ger experience the retail experienceshould be the icing on the cake. Andeven if an aspect of airportservice has been a let down, a greatexperience in the store can seduce thetraveler into subconsciously forgiv-ing the negatives and leave them witha highly positive perception of thewhole airport experience.

Anne Kavanagh owns and operates

Kavanagh Communications, a UK-

based public relations firm specialis-

ing in travel retail.

Selling the airport experience

‘When tenders comearound, travel retailersneed to convince theairport that they bringsomething extra.’

--Anne KavanaghKavanagh Communications

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In January 2012, Innova Dis-tributors launched commercialactivities.  In 15 months, theyhave grown to 231 points of salein 14 countries in Latin America.Clients include

Grupo Wisa (La Riviera),Motta Internacional (Attenza),UETA Latinoamerica (DFA),Mannah, Brightstar, and DufryEcuador.

com.

DRINK WITH CARE.AYSTOLICHNASTOLICHNAY ® Premium vodka. 40% Alc./V

ol. 100% Grain Neutral Spirits. © 2013 Premium vodka. 40% Alc./V

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The Edrington Group

The Macallan ‘M’ Highland Sin-gle Malt Whisky was unveiled byThe Edrington Grouprecently.

To create TheMacallan M, de-scribed by the com-pany as theworld’s most so-phisticated singlemalt whisky andcontained in acrystal decanter,The Macallanpartnered withcreative directorFabien Baron andcrystal mastersLalique.

Label 5

Label 5 is the flagship brand ofLa Martiniquaise, an independentgroup within the World’s Top 10spirits companies.

Ranked 9th on the worldwideScotch Whisky market with 2.5 mil-lion 9-L casessold in 2012,the brand isalso the secondfastest growingbrand over thelast four yearswith the Top 10Scotch Whiskybrands, accord-ing to the com-pany.

The brand’skey priority isexpanding inthe duty freeand travel retail channel. It is pro-duced, aged and bottled in the com-pany’s distilleries in Scotland.

Luxottica

Luxottica introduces the launchof Burberry’s Spark Eyewear Col-lection.

The Burberry Spark campaigncelebrates emerging British musictalent.

Two-tone acetate styles includesquared frames for men androunded cat-eye shapes for women,with mirrored or tonal lenses.

B+D

B+D’s new line of readers - StayOn – will soon be available in travelretail stores worldwide.

Ideal for everyday use and peo-ple on the move, this design allowsyou to keep your glasses on com-fortably at all times without damag-ing or losing them.

Stay On is light, and can be usedhanging around the neck thanks to

Products

Diageo introduces SingletonReserve Collection

Diageo Global Travel introduces The Singleton Reserve Collectionof Single Malt Scotch Whiskies, a series of Single Maltscrafted solely with the aim of creating the best-tastingMalts in travel retail today.

The Singleton Reserve Collection consists of releasesfrom the Dufftown, Glen Ord and Glendullan distiller-ies which will be permanent travel retail exclusives,offering travellers a range of whiskies that cannotbe found in domestic markets.

Steve White, Diageo GTME Marketing Director,said: “The launch of The Singleton Reserve Collec-tion is one of the most significant advances in themalts category in Global Travel Retail for manyyears. It fully delivers on the desire of our cus-tomers for new and fully differentiated offeringsthat will drive strong additional growth in a cate-gory that is already growing rapidly.

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its specially designed ergonomictemples.

B+D CEO Roberto Crom says,“Many users of reading glasses arenever sure how to face up the prob-lem of what to do with their glasseswhen they are not in use. When youstop reading and take your glassesoff, how do you ensure that theyare not scratched or, even worse,lost? We have solved this problemin a simple and ingenious way, withour patented design for Stay On.”

B+D also introduces ultra com-pact reading glasses, a must-haveitem for people on the move. Theglasses fit perfectly in a pocket,handbag or travel kit

Godiva

For the end of the year, Godivawill introduce the Christmas Col-lection. The bright and sparklingholiday red giftboxes will offer aselection of Godiva’s finest choco-lates. The Christmas range consistsof a 12-piece Truffles box and a 20-piece chocolate giftbox.

Love Da Popcorn

Love Da Popcorn introduces aninflight snacking product that willtake advantage of the upward trendof popcorn as a global snack.  Lastyear showed a 30% increase in UKsales according to Mintel figuresand they are predicted to rise rap-idly in the years to come.  The boxhas been developed specifically forthe travel sector and is aimed atmaximising customer experiencewhile onboard. Love Da Popcornrepresentative Peter Jones stated,“We saw real potential in the travelretail sector for a quality popcornbrand with a unique identity andproduct offering which was at thecorrect price point. 

“We knew that popcorn was anarea that we wanted to push in-flight and looked for the right part-ner. Love Da Popcorn has a qualitybranded product at the right pricepoint that delivers margin - as wellas value for the passenger. Wehave worked very hard with LoveDa Popcorn to get this product andpackaging just right and think thebrand has exceptional potential intravel retail.”

Products

Perfetti Van Melleadds to Mentos range

Perfetti Van Melle GTR announces two additions to its Mentos Gumrange — Mentos Gum Sweet Mint White and Green Mint White.

The two flavours, with a dental approach, are an expansion of therange already widely distributed. The new additions are perfect for im-pulse purchasing at the cash till point. They are packed in the samerecognisable and unique bottle that is eye-catching to the traveller andeasy to bring on their journey.

These new travel retail exclusive Mentos contain 65 pieces and aresugarfree, appealing to the more healthconscious passenger. They will be dis-played on a Mentos Gum BottleSlimwheel display and a Mentos GumBottle rack display for maximum visi-bility.

“We are delighted to be expandingour Mentos range of chewing gums,”says Susan de Vree, PVM Travel RetailDirector. “With the unique packagingand visibility tools at our disposal, weexpect these to be a huge hit when theyhit duty free stores in July.”

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Products

Travalo

Travalo introduces touch roller-balls with Swarovski crystals. Theyare shrink wrapped together, butcan be separated via a perforatedseal.

The Skyline has the Travalopatented refilling system with acrisp and modern appearance withthe added Swarovski crystal detail.Available in Gold, Rose Gold, Sil-ver and Pink initially as an ‘in-flight’ exclusive with a view tolistings on the major scheduled car-riers.

Travel Blue

Travel Blue introduces new de-signs in its Brand Identity Cornerunits – specifically designed for air-port retail shops with high visibilityand packing a maximum number ofproducts into a small of space. Theunits are on wheels, can have elec-trical supply for the light boxes andfold in half, for reduced space.

Travel Blue’s product line up is

continually developing and thecompany says it’s promising amajor new initiative, which is beinglaunched later this year. In themeantime, new to the range is aquality Worldwide Adaptor en-abling connection in over 150countries.

Kaloo

Millennium Fragrances will bepresent at the Asutil Conference topresent its new launches of thebrands Kaloo Parfums and KokeshiParfums.

Millennium presents a Kokeshi5ml nail lacquers collection forteenagers and a Kaloo merchan-diser with 25 mini 8ml scented wa-ters for children.

Wonderful Pistachios

Wonderful Pistachios introducesits travel retail exclusive packswhich include two pack sizes: a300g pack of best-selling WonderfulRoasted & Salted pistachios and a275g pack of award-winning Won-derful Salt & Pepper pistachios,both carrying recommended retailprices of US $11. Both are offeredin resealable stand up pouches andcarry a global travel retail exclusivelogo. In addition, there is a travel re-tail version of the existing 510g giftbag which includes a hang-tag with

multi-lingual nutrition and ingredi-ents details.

“We had a lot of very positive in-terest during the Orlando week, par-ticularly from the Caribbeanregion,” says Paramount FarmsSales Director for Global Travel Re-tail, James Kfouri.

Currently the No. 1 snack nutbrand in the U.S. and sold in morethan 30 countries around the globe,the Wonderful Pistachios brand isnow making its mark in travel re-tail, says Kfouri. The companyhas set up a dedicated travel retailwebsite for the brand at:www.wonderfulpistachios.com/travelretail

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A look back at IAADFS Duty Free Show of The Americas 2013

Adda Rodriguez and Antoine Bona, EssenceCorp.

Antonio Venceslà, JTI.

Mark Ozmen, World of Patria International.

David Tillman, beauty2market.

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