www.thelatinamericareport.com ASUTIL ISSUE June 2015

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

The Latin America Report

Tocumen

Transforms

•Airport expansion

plans provides

capacity for 33

million annually

•Europe and Asian duty

free operators

expressing interest

•Concession tenders

set for early 2016

See Page 6

Airports

Quito airportQuito airport

continues continues

expansionexpansion

- Page 2 -

The second phase of the expan-sion of Quito’s Mariscal SucreAirport passenger terminal wasopened to the public on May 18.

The U.S. $22 million expansionis comprised of 7,910 metres andoffers new boarding bridges and10 new gates.

Andrew O'Brian, President andCEO of airport operator Corpo-ración Quiport said, “It is an hon-our to deliver this new work to thecity of Quito, in order not only toimprove passenger comfort butalso, using their own techniquesand materials, local architecture,and a sense of identity and belong-ing to Quito airport."

Indoor/Outdoor gardens

The inclusion of indoor and out-door gardens, hanging plants andponds make this area a place thatallows passengers feel in touchwith nature.

The new waiting areas offerthree food and beverage establish-ments and the incorporation of alocal menu, new retail stores witha focus on local goods, a new Na-tional VIP room and a children'sentertainment space.

The design, construction andproject management for the expan-sion of the terminal was carriedout by Ecuadorian talent. About450 local workers and 70 compa-nies (68 of which were Ecuado-rian) were utilised.

Boulevard Rialto is the namefor the 70-metre long hallwayleading to the new waiting areas.Ceramic coating representing vari-ous parts of Ecuador was used onthe walls.

Located in the busiest space inthe airport, Boulevard Rialto fea-tures Ecuador Travel Stores, ashopping promenade offering avariety of goods from books tosnacks to clothing.

Last year, Quito’s internationalairport handled approximately sixmillion passengers, a new recordfor the airport. This represents a9.1% increase in traffic over theprevious years.

Ecuador Travel Stores, located in the airport’s busiest corridor, is ashopping promenade featuring a variety of goods.

- Page 3 -

Our congratulations to Asutil for a 20-year journey lled with commercial success

Nuestras Felicitaciones a Asutil por una jornada de 20 años llena de exitos comerc

iales

- Page 4 -

Airlines

Brazil airport concessions

expected soon

New concession tenders for Brazil airportsmight be released this month, according toBrazil media.

Reports suggest four airports might be putup for privatization, including Porto Alegre,Salvador, Florianopolis and Fortaleza.

The involvement of Infraero, Brazil’s na-tional airport authority remains unknown. Inthe past five airport privatizations, Infraero re-mained a 49% stakeholder in the concessions.However, the entity has been losing money,and experts say its participation must be re-duced or eliminated in order to attract morebidders.

Surge in new

Florida – Latam routes Numerous airlines are expand-

ing or beginning new routes con-necting Florida with LatinAmerica.

Delta Air Lines plans to launcha route between Orlando and SãoPaulo starting in December.

The airline has filed for regula-tory approval to operate the routefour times a week.

Brazilian carrier TAM willbegin a Brasilia – Orlando route inJuly. Azul Brazilian Airlines an-nounced it will begin an Orlando –Belo Horizonte route beginning inNovember. The new service willoperate five days a week and thendaily from Dec. 14. Azul will also

increase its São Paulo – Orlandoroute to 10 round trips a week be-ginning in mid July.

Low-cost carrier JetBlue Air-ways will begin daily flight servicefrom Fort Lauderdale-HollywoodInternational Airport and OrlandoInternational Airport to MexicoCity’s Benito Juarez InternationalAirport beginning in October.

JetBlue also plans to begin aroute between Orlando and Quito,Ecuador early next year. "Demand

for travel to Ecuador has beengrowing strongly, especially afterextensive promotional efforts bythe country's officials," said the air-line.

Budget carrier Spirit Airlineswill add six new Latin Americadestinations from Houston’sGeorge Bush Intercontinental Air-port. In June the carrier will beginnon-stop flights to Mexico,Nicaragua, Costa Rica, Hondurasand El Salvador.

Copa

Panama’s Copa Airlines will begin nonstop service to SanFrancisco in September.

The daily route will be between San Francisco Interna-tional Airport and Panama’s Tocumen Airport.

“Our flight has the potential to make a substantial contri-bution to tourism and general economic development be-tween California, Panama and the rest of the Latin Americanregion, as well as open up important markets in Asia,” saidPedro Heilbron, CEO of Copa Airlines.

Aeromexico

Aeromexico began a daily flight from Mexico City toToronto in early May.

"Being able to offer our clients more and better networkconnectivity is one of our most important goals," said Ankovan der Werff, Aeromexico Chief Revenue Officer. "This iswhy we are adding Toronto to our announcement of newroutes for 2015, as Canada's economic capital and one of thetop financial centers in the country. This new destination in-creases the exchange of business and tourism for the Mexi-can economy and the connectivity between Canada and LatinAmerica.”

- Page 5 -

- Page 6 -

News

By Wendy Gallagher

Expansion of Panama’s Tocumen International Air-port seems to have no limit.

And, the retail space it will be allocating is generat-ing interest from duty free operators from abroad.

Tocumen is the second busiest airport in LatinAmerica in terms of passenger movements, second toSão Paulo’s Guarulhos. This year the airport will han-dle approximately 13 million passengers. In two yearsthe airport will be able to handle 25 million annuallyand plans for further expansion will see the airport ableto handle up to 33 million passengers (in line withstudies showing expected tourist growth) over the next10-15 years, according to airport spokesperson MelissaAraúz.

Expansion of the south terminal is about 44% com-plete. Under construction since March 2013, oncecomplete in mid-2017, the terminal will offer 9,000square metres of retail space. It will have 20 new gates

and eight remote gates, which added to the 40 existingin the actual terminal will make a total of 68 gates. 

“The sizes of the spaces have not been chosen yet.We anticipate we will have upscale stores in this newarea of the airport and also the traditional duty freesstores that sell liquor, perfumes, cosmetics, etc. Wewant to make sure we have the right mix of duty freeshops for the passengers moving through our airport,”says Araúz. “We´ve been already approached by im-portant duty free operators from Europe and Asia. Thisis why we are currently studying the different cate-gories of business we could develop to satisfy ourusers.”

The value of the contracts has not been decided, asit will depend on the size and location. It will be partof a bid process. 

“We estimate the terminal will be ready in the sec-ond trimester of 2017, so most likely in the beginningof 2016 we will tender for the duty free shops,” saysAraúz.

The tenders will be for five and 10-year contracts,she says.

Currently, Motta Internacional and Grupo Wisa op-erate duty free stores in the main terminal, with theircontracts expiring in 2018.

A management review last year of all Tocumen’sconcessions did not affect the contracts held by Mottaand Wisa. However, 17 concessions affected the flowand circulation of passengers and won’t be re-tendered.There are 23 commercial spaces available, says Araúz,of which seven have been tendered, three are inprocess and the remaining 13 will be tendered in thecoming months.

The Panamanian government owns 100% of theshares of Tocumen airport. The airport was recentlyawarded by Best Airport of Central America by Sky-trax.

The airport is currently working on creating a cul-tural and historic hub to create a storytelling concept ofthe country’s history.

souTh

Terminal

seT To

open in

mid-2017

- Page 7 -

- Page 8 -

By Wendy Gallagher

Expect the unexpected for the facelift about to take

place at Rio de Janeiro’s international airport.

Architect Robbie Gill, owner and director of The

Design Solution says airport retail needs to be shaken

up. “Jesus it’s boring,” he tells The Latin America Re-

port. “They (airports) all look the same.”

Gill and his team are working with Rio Galeão (air-

port operators consisting of Changi, Odebrecht and In-

fraero) planning the spaces

for the renovation. “Ode-

brecht has been absolutely

brilliant to work with,”

says Gill.“The privatization in

South America has really

opened up opportunities,”

says Gill, adding some of

the bigger, older terminals

are in need of an overhaul.

The Rio terminals are “big

chunks of concrete. There

is a brutal feel to those ter-

minals,” he says.

His plan is to give the terminals “heart, smiles, colour

and experience.” Included in the renovation is a level in

T2 that is under utilized and repositioning the opera-

tional aspects of the building. “There will be a com-

pelling change to the way the airport operates,” he says.

Stating that his firm has worked for both sides of the

fence in airports (designing airport space as well as com-

mercial use) “puts us in an interesting position. Archi-

tects usually like to control things,” he laughs.

Gill firmly believes that when planning airport space,

“every passenger needs to see an airplane.” He adds unlike a

shopping centre, “airports are like a sausage factory. In one

end and out the other. The key is to manipulate the flow.”

Offering a wider variety of retail stores will be a “bit

of a learning curve,” says Gill. He agrees quality,

popular retailers have a proven track record of mak-

ing money for airports, something he calls a “most un-

fortunate trend” because it causes airport operators

hesitation in making any changes.

However, spend per passenger is declining in most

airports, says Gill. Airports that are reporting in-

creased retail sales figures are doing so because pas-

senger numbers have increased, not the spend, he says.

Because limited space means an airport is never

going to offer a huge choice of options, Gill says it’s

important for commercial directors to attract stores

that “give people a surprise...an opportunity to buy

things that aren’t offered on the high street.

“We need more diversity,” he says. “The best

spenders are people going on holiday. They are great

consumers and customers,” Gill says, adding they

should be treated to a greater and more unique shop-

ping experience.One of his proudest

projects was his in-

volvement in the ex-

pansion of Gatwick’s

North Terminal 15

years ago. “To me that

was the start of the

airport revolution.”

Gill says it was the

first attempt the

British Airport Au-

thority (BAA) made in

bringing in quality re-

tailers. “We were right

at the forefront.” It was after this project, Gill says he

decided to focus strictly on airports, with 45% of his

work done on airport terminals and another 45% on

working with leading travel retail and duty free opera-

tors worldwide creating retail spaces.

Naturally Gill has his favourite airports, which vary

according to category. He likes Changi Airport in Sin-

gapore for its customer service and wide-open spaces;

Hong Kong International Airport for its architecture;

and London’s Heathrow International Airport for its

retail offer, which he acknowledges, was a project his

firm worked on.We’re confident that after Gill puts his touch on air-

ports in Latin America, a new favourite will appear on

his list.

News

AirporT Shopping ‘Boring’

Architect calls for more diversity in airport retail experience

Firm planning Rio airport renovation.‘The privatization inSouth America has really opened up opportunities.’

--Robbie GillThe Design Solution

- Page 9 -

By Wendy Gallagher

Expect the unexpected for the facelift about to take

place at Rio de Janeiro’s international airport.

Architect Robbie Gill, owner and director of The

Design Solution says airport retail needs to be shaken

up. “Jesus it’s boring,” he tells The Latin America Re-

port. “They (airports) all look the same.”

Gill and his team are working with Rio Galeão (air-

port operators consisting of Changi, Odebrecht and In-

fraero) planning the spaces

for the renovation. “Ode-

brecht has been absolutely

brilliant to work with,”

says Gill.“The privatization in

South America has really

opened up opportunities,”

says Gill, adding some of

the bigger, older terminals

are in need of an overhaul.

The Rio terminals are “big

chunks of concrete. There

is a brutal feel to those ter-

minals,” he says.

His plan is to give the terminals “heart, smiles, colour

and experience.” Included in the renovation is a level in

T2 that is under utilized and repositioning the opera-

tional aspects of the building. “There will be a com-

pelling change to the way the airport operates,” he says.

Stating that his firm has worked for both sides of the

fence in airports (designing airport space as well as com-

mercial use) “puts us in an interesting position. Archi-

tects usually like to control things,” he laughs.

Gill firmly believes that when planning airport space,

“every passenger needs to see an airplane.” He adds unlike a

shopping centre, “airports are like a sausage factory. In one

end and out the other. The key is to manipulate the flow.”

Offering a wider variety of retail stores will be a “bit

of a learning curve,” says Gill. He agrees quality,

popular retailers have a proven track record of mak-

ing money for airports, something he calls a “most un-

fortunate trend” because it causes airport operators

hesitation in making any changes.

However, spend per passenger is declining in most

airports, says Gill. Airports that are reporting in-

creased retail sales figures are doing so because pas-

senger numbers have increased, not the spend, he says.

Because limited space means an airport is never

going to offer a huge choice of options, Gill says it’s

important for commercial directors to attract stores

that “give people a surprise...an opportunity to buy

things that aren’t offered on the high street.

“We need more diversity,” he says. “The best

spenders are people going on holiday. They are great

consumers and customers,” Gill says, adding they

should be treated to a greater and more unique shop-

ping experience.One of his proudest

projects was his in-

volvement in the ex-

pansion of Gatwick’s

North Terminal 15

years ago. “To me that

was the start of the

airport revolution.”

Gill says it was the

first attempt the

British Airport Au-

thority (BAA) made in

bringing in quality re-

tailers. “We were right

at the forefront.” It was after this project, Gill says he

decided to focus strictly on airports, with 45% of his

work done on airport terminals and another 45% on

working with leading travel retail and duty free opera-

tors worldwide creating retail spaces.

Naturally Gill has his favourite airports, which vary

according to category. He likes Changi Airport in Sin-

gapore for its customer service and wide-open spaces;

Hong Kong International Airport for its architecture;

and London’s Heathrow International Airport for its

retail offer, which he acknowledges, was a project his

firm worked on.We’re confident that after Gill puts his touch on air-

ports in Latin America, a new favourite will appear on

his list.

News

- Page 10 -

News

New

London Supply

store to offer

wider variety of

goods

By Wendy Gallagher

Don’t tell anyone at travel re-tailer London Supply that there is acurrency problem in the region.

For the Argentinean retailer, it’sbusiness as usual, and that businessis growing.

London Supply recently secureda 30-year concession for a store insouthern Argentina known as theRio Gallegos Free Zone.

Located in the province of SantaCruz, London Supply will constructand operate a 2,000 square-metreshop, scheduled to be open in abouta year.

Magdalena Ducos, London Sup-ply’s Commercial Director, says the

store will feature the traditionalduty free categories, as well ashome appliances, home and designproducts and a special focus onelectronics. “In this area of thecountry, electronics is a very impor-tant category, so we will focus on itas one of the major items,” saysDucos.

Another item London Supplywill be selling is not normally foundin duty free shops. The companywill sell imported vehicles. Accord-ing to Ducos, residents in theprovince are permitted by law topurchase an imported car in the freezone, once every five years, withoutpaying the import tax. “We aremoving forward with differentbrands,” she says.

The province’s capital city, RioGallegos, is located 70 km awayfrom the border between Argentinaand Chile, and 200 kms from thePunta Arenas Free Zone in Chile.London Supply hopes to capture thetravellers who are currently going tothe Chile free zone to make pur-chases.

Meanwhile, London Supply con-tinues to experience success with itsDuty Free Shop Puerto Iguazu, lo-cated on the Brazilian border.

While the Brazilian Real hasfallen dramatically in value thisyear, London Supply says it’s notexperiencing the effects.

“Last year we remodelled thestore, doubled the size of the shopand warehouses,” says Ducos. “Ourmajor customer is the Brazilian andthe Argentinean, not the interna-tional traveller,” says Ducos. IguazuFalls is a major tourist destination,and one of the Seven Wonders ofthe World. “When you have an eco-nomic situation in the region, peo-ple stop taking international tripsand instead, travel within the re-gion,” says Ducos. “When you arein an area with 100 percent focus ontourism, the currency variations af-fect your business in a lesser way. Ifyou have the tourist destination fac-tor, it’s a plus for the business,” shesays. “We pay attention to currencyfluctuations, but we are not 100 per-cent dependent on them.”

aauTomobilesuTomobiles , ,

appliancesappliances , ,

homehome goodsgoods

Artist rendering of new LondonSupply store to be built in riogallegos Free Zone.

- Page 11 -

- Page 12 -

News

By Wendy Gallagher

There are many good reasons visiting Peru, a di-verse country with rich culture, historic places,amazing nature and wildlife and great people.

With the rise of the gastronomy of Peru, it makes visit-ing the country a culinary destination in its own rightwhere guests can choose from a multitude of restau-rants, which have been ranked as top restaurants inLatin America and the world to visit.

So imagine enjoying hallmark dishes like Ceviche orLomo Saltado with a Pisco Sour – the national drink ofPeru – while watching the hustle and bustle of arrivingand departing aircraft from the window at your restau-rant table.

“Transforming Jorge Chavez International Airportinto a leading Latin American hub took time, know-howand a lot of work,” says Sabine Trenk, COO of Lima

Airport Partners. In 2001, Lima Airport Partners (LAP)was awarded a 30-year concession for constructing, op-erating and managing the airport. Since then, the LAPconsortium – which is led by Fraport AG (the ownerand operator of Frankfurt Airport) as major shareholderand the provider of airport expertise – has invested U.S.$337 million in remodeling and constructing terminaland airside facilities.  In addition, LAP has transferredmore than $1.4 billion to the Peruvian government forregular concession fees, taxes and transfers to publicentities since the concession began in early 2001.

The airport’s first development phase included a65,500 square metre terminal expansion and the cre-ation of ‘Peru Plaza’ – a new 5,500 square metre land-side commercial area that has been “immensely popularfrom the very beginning,” says Trenk. “ The idea of thefood court within the Peru Plaza was to provide notonly appealing space for passengers but also for themany greeters accompanying friends and family prior totheir flight.  Since its inauguration, Peru Plaza has un-

dergone several changes to remain attractive and tomeet changing customer needs and tastes. In April2015, for example, we opened China Wok – as a restau-rant that offers chifa, a fusion of Chinese and Peruvianfood.  Another new outlet added in April of this year isChocolat by Republica de Cacao.  This boutique pres-ents chocolate at its ultimate expression, inspired by thedifferent Latin American influences,” adds Trenk.

After the first expan-sion LAP continuedadding terminal area,which now totals87,000 square metres.“We have improvedpassenger flow andprocesses by addingemigration controlpoints and passengersecurity lanes.  Fur-thermore, to enhancethe Lima Airport expe-rience we have pro-vided more space foradditional new shop-ping and food and bev-erage outlets, plus a major expansion and remodeling ofthe departures duty free shop,” says Trenk.

A recent organizational change of the airportretail/commercial management area is aimed at achiev-ing even closer cooperation with the concessionaires –thus opening up new opportunities for both parties. Ac-cording to Trenk, “We have installed dedicated teamsfor duty free, specialty retail, FAB and services to workwith our concessionaires, so that through a collaborativeapproach we can achieve the best possible shopping ex-perience for our passengers.

From less than four million passengers in 2001,

LIM’s airport traffic has almost quadrupled to 15.6 mil-lion in 2014.  Forecasts indicate that traffic in the regionand Lima will continue to grow above average. “By2020, we are expecting to surpass 23 million passengersper year.  Therefore, last year LAP commenced phasethree of the airport development program. This latestexpansion of Jorge Chavez International Airport willcertainly be the most ambitious in the airport’s history.

It includes the con-struction of a newpassenger terminal,airside facilities anda second runway,”says Trenk.

Another upgradeof the existing termi-nal is part of the ex-pansion plan, whichcomprises improve-ments to the dutyfree shops and a newcommercial area ascore part of Terminal1 in the comingyears. In advance of

the remodeling of the duty free area, a MAC store hasbeen opened.

Fraport’s international spokesman Robert Paynestresses, “Lima Airport is a classic example of a win-win project that has benefitted passengers, the city ofLima – a global metropolis – as well as Peru and SouthAmerica in general.  The airport now has improvedquality, higher investments in infrastructure, servicesand training, top management, as well as more revenuefor the public sector. The airport is an important callingcard for Peru, which has been one of the top performingeconomies in South America in the past decade.”

For seven consecutive years, Jorge Chavez International Airport in Lima, Peru has

been honoured with The Skytrax World Airport Award as best airport in South

America, as voted on by travellers. The Latin America Report decided to find out

why LIM is such a popular airport.

Simplythebest...

China Wok, a fusion of Chinese and peruvian food.

- Page 13 -

News

By Wendy Gallagher

There are many good reasons visiting Peru, a di-verse country with rich culture, historic places,amazing nature and wildlife and great people.

With the rise of the gastronomy of Peru, it makes visit-ing the country a culinary destination in its own rightwhere guests can choose from a multitude of restau-rants, which have been ranked as top restaurants inLatin America and the world to visit.

So imagine enjoying hallmark dishes like Ceviche orLomo Saltado with a Pisco Sour – the national drink ofPeru – while watching the hustle and bustle of arrivingand departing aircraft from the window at your restau-rant table.

“Transforming Jorge Chavez International Airportinto a leading Latin American hub took time, know-howand a lot of work,” says Sabine Trenk, COO of Lima

Airport Partners. In 2001, Lima Airport Partners (LAP)was awarded a 30-year concession for constructing, op-erating and managing the airport. Since then, the LAPconsortium – which is led by Fraport AG (the ownerand operator of Frankfurt Airport) as major shareholderand the provider of airport expertise – has invested U.S.$337 million in remodeling and constructing terminaland airside facilities.  In addition, LAP has transferredmore than $1.4 billion to the Peruvian government forregular concession fees, taxes and transfers to publicentities since the concession began in early 2001.

The airport’s first development phase included a65,500 square metre terminal expansion and the cre-ation of ‘Peru Plaza’ – a new 5,500 square metre land-side commercial area that has been “immensely popularfrom the very beginning,” says Trenk. “ The idea of thefood court within the Peru Plaza was to provide notonly appealing space for passengers but also for themany greeters accompanying friends and family prior totheir flight.  Since its inauguration, Peru Plaza has un-

dergone several changes to remain attractive and tomeet changing customer needs and tastes. In April2015, for example, we opened China Wok – as a restau-rant that offers chifa, a fusion of Chinese and Peruvianfood.  Another new outlet added in April of this year isChocolat by Republica de Cacao.  This boutique pres-ents chocolate at its ultimate expression, inspired by thedifferent Latin American influences,” adds Trenk.

After the first expan-sion LAP continuedadding terminal area,which now totals87,000 square metres.“We have improvedpassenger flow andprocesses by addingemigration controlpoints and passengersecurity lanes.  Fur-thermore, to enhancethe Lima Airport expe-rience we have pro-vided more space foradditional new shop-ping and food and bev-erage outlets, plus a major expansion and remodeling ofthe departures duty free shop,” says Trenk.

A recent organizational change of the airportretail/commercial management area is aimed at achiev-ing even closer cooperation with the concessionaires –thus opening up new opportunities for both parties. Ac-cording to Trenk, “We have installed dedicated teamsfor duty free, specialty retail, FAB and services to workwith our concessionaires, so that through a collaborativeapproach we can achieve the best possible shopping ex-perience for our passengers.

From less than four million passengers in 2001,

LIM’s airport traffic has almost quadrupled to 15.6 mil-lion in 2014.  Forecasts indicate that traffic in the regionand Lima will continue to grow above average. “By2020, we are expecting to surpass 23 million passengersper year.  Therefore, last year LAP commenced phasethree of the airport development program. This latestexpansion of Jorge Chavez International Airport willcertainly be the most ambitious in the airport’s history.

It includes the con-struction of a newpassenger terminal,airside facilities anda second runway,”says Trenk.

Another upgradeof the existing termi-nal is part of the ex-pansion plan, whichcomprises improve-ments to the dutyfree shops and a newcommercial area ascore part of Terminal1 in the comingyears. In advance of

the remodeling of the duty free area, a MAC store hasbeen opened.

Fraport’s international spokesman Robert Paynestresses, “Lima Airport is a classic example of a win-win project that has benefitted passengers, the city ofLima – a global metropolis – as well as Peru and SouthAmerica in general.  The airport now has improvedquality, higher investments in infrastructure, servicesand training, top management, as well as more revenuefor the public sector. The airport is an important callingcard for Peru, which has been one of the top performingeconomies in South America in the past decade.”

Peru Plaza

- Page 14 -

News

Seva Group is looking to establish itself as the ‘goto’ wine people in global travel retail.

Exhibiting at the ASUTIL show in Panama, LauraKlingeman of Seva Group, in partnership with Barry Ge-oghegan of Travel Retail Brands Ltd., will showcase someof the world’s top quality premium wines.

“We are on a mission to bring some of the wine world’s‘little gems’ to our friends in Latam and throughout theglobe,” says Geoghegan, who holds a Wine MBA, which hesays is very important in establishing their wine credentialsto operators.

At the recent TFWA show in Singapore, “We brought to-gether many like-minded quality family wine companiesand held a Wine-Hour opening wines from these excellentproducers,” says Geoghegan.

During the ASUTIL conference in Panama, “We intend toopen top end wines from Craggy Range in New Zealand.The wines of Craggy received the ultimate honour whennamed by Wine Enthusiast Magazine ‘New World Wineryof the Year’ in December 2014,” says Geoghegan.

“We will also be tasting the excellent range of wines fromAustralia’s most-awarded wine company, Taylors. TaylorsSaint Andrews Cabernet Sauvignon won the trophy for thebest Cabernet Sauvignon at the IWSC Awards beating11,000 other Cabernets to the top prize.

In addition we continue to bring great innovation to theoperators with the wine gift sets from Paul Sapin and thenovel new Petit Voyage (187ml with a glass attached forconvenience). Finally we will be pouring some excellentnew wines from Spain which have an incredible price: qual-ity ratio.

For further information contact Laura Klingeman atl.klingeman@seva-group.com

Wine duoshows toppremiumbrands atASUTiL Laura Klingeman

Seva group

Barry geogheganTravel retail Brands

- Page 15 -

By Wendy Gallagher

It’s one of the few items where travellers aren’t com-paring prices with their local market, and it’s keepingthe cash registers busy.

Wonderful Pistachios has exploded throughout theduty free and travel retail arenas, since first making itsdebut four years ago, and there is no sign of a slow-down.

James Kfouri, GTR sales directorfor Wonderful Pistachios reportsstrong growth for the productthroughout Latin America, andworldwide.

In a recent interview with The

Latin America Report, Kfouri sayssales are up 75% year to date intravel retail. Those are the kind ofsales figures most brands only dream about. So, what isthe secret to the brand’s success?

“It’s alternative,” says Kfouri. “We get thrown intothe confectionery and fine food sections. There is no-one else competing, or the competition is very limited.Confectionery is an impulse buy. Now travellers have achoice of buying a relatively healthy snack which theycouldn’t buy before.”

Now in 52 travel retail locations, Wonderful Pista-chios is purchased mainly for a personal snack, and not

as a gift. In many cases, Kfouri says the bags are moreexpensive in travel retail ($16 for 300 grams) than thedomestic market. “But so are a lot of items in an air-port. A bottle of water can be more expensive than abeer or a glass of wine,” he says.

At London Supply’s Iguazu border store, sales of thenuts are booming. The store places the nuts in its liquor

and fine food sections as a secondaryproduct. As well, during alcohol tast-ings, Wonderful Pistachios are served.“It’s nice to have some snacks availablewhen serving customers a drink,” saysKfouri. Throughout the region, SouthAmerican duty free retailers were “veryquick to take the brand,” says Kfouri.“They are brilliant.” Wonderful Pista-

chios are now sold on board Buquebus ferries, whichtravel between Argentina and Uruguay, through Bern-abel Trading, as well as in duty free stores in Paraguay,Colombia, Uruguay and Guyana.

One obstacle for retailers not yet selling the nuts isthey have nothing to compare against, says Kfouri.While currency issues in some South American coun-tries do have an impact on sales, Kfouri says, “Thereare always going to be blips. It’s part of travel retail. Ifone market is up, one is going down.”

News

LATin

TrAvELLErS

ThinK

piSTAChioS

ArE

WonDErFUL

London Supply Duty Free Shop puerto iguazú.

YTD travelretail sales

up 75%

- Page 16 -

- Page 27 -

- Page 17 -

- Page 18 -

Products

Dufry Argentinagrupo Wisa, panama

London Supply Argentina

Dufry Argentina

Dufry Mexico

ready,set,LAUnCh

Miami-based fragrance and

cosmetics distributor Essence

Corp. experienced a busy first

half with numerous fragrance

launches throughout the re-

gion. Euroitalia’s Moschino Toy

and Versace Eros Femme

launched throughout the region

in May.Jimmy Choo and Lanvin,

both by Interparfums Paris

were launched between Febru-

ary and April.

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Products

Erno LASZLo

Erno Laszlo introduces two new skin-quenching new additions to theHydra-Therapy Collection: Hydra-Therapy Refresh Infusion and Mem-ory Sleep Mask. Addressing key modern day environmental stressorsthat dehydrate the skin, like UV radiation, pollution and skin damagingtoxins, these treatments are said to deliver instant hydration for parched,stressed and tired skin.

TYKoThe bohemian fashion trend has a personal endorsement on YouTube of

Tyko Travel Retail’s Hippie Chic ‘Boho” watch byblogger/presenter/celebrity Courtney Sixx. Hippie Chic is now listed on98% of Tyko’s 300 listings for 2015.

“The increased hype around bohemian fashion generally is really fantas-tic news for Hippie Chic sales – especially when we benefit from celebrityblogger endorsements,” says Tyko Director Global Travel Retail MartinLovatt.

BELLroYBellroy introduces two new wallets, the Phone Pocket and Phone

Pocket Plus.The Phone Pocket Plus offers space for a phone, cards, bills, coins,

house key, passport and more.According to Bellroy, wallet forums consistently see the phrase, “If

only this held a phone.” The company listened, and crafted a#phonepocket.

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Products

MoSqUiTnoMosquitNo introduces a full cosmetic line of anti

mosquito products.The line consists of a sun+mosquito protector, a

aftersun+mosquito protector, a body lotionspray+mosquito protector and a perfumeman/women+mosquito protector. The series willcome out in 30ml, 50ml,100ml and for the sun/af-tersun product also in 200ml.

The line will launch in Latin America at the endof Q2.

go TrAvELThe new Silky Eye Mask from Go Travel adds a

touch of luxury and the design allows the wearer toblock out intrusive light, resulting in better quality restand maximized sleep potential, both in the air and onthe ground.

Go Travel also introduces a new Twist ‘N’ Set com-bination lock. The unique “twist” design makes set-ting the 3-digit combination code completelyhassle-free. It’s also TSA accepted. The company hasalso incorporated hand-luggage approved SqueezyBottles into its range of travel toiletry solutions. De-

signed to adhere to airport liquid regulations, the mal-leable bottles allow travelers to take all of their fa-vorite grooming products with them on the go.

TrAvEL BLUE

Travel Blue introduces a range of World To adaptors,which it believes are particularly suitable for ArrivalsShops.

The World To range is earthed and grounded for extrasafety and suitable for use with most electrical travelitems such as laptops, mobile phones and cameras saysDirector of Travel Retail Jonathan Smith: “These WorldTo adaptors are perfect for Arrivals Outlets when pas-sengers realise that their travel adaptor is not suitablefor the country in question, or they want to buy an addi-tional adaptor at a more reasonable price. Being earthedmeans they are very safe to use with earthed or non-earthed appliances by travellers from some 150 coun-tries. The rear of the pack explains which countries theplug is suitable for where there are additions to that fea-tured on the pack front. For example the China/Aus-tralia version can also be used in Argentina and NewZealand,” says Smith.

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30th Annual Convention30e Convention annuelle

“Canada’s Exclusive Duty Free Convention”

November 15 – 18 | 15 – 18 NovembreWestin Bayshore, Vancouver, BC, Canada

www.fdfa.ca

2015