The mood at last month’s TFWA World Exhibition in Cannes was understandably a reflective one. It was, after all, the trade exhibition’s 40th anniversary – an important landmark and a timely moment for the global travel retail industry to reflect on its past struggles and achievements, its current health and future challenges.
At the event’s opening conference, outgoing TFWA president Erik Juul-Mortensen revealed that, while the travel retail sector had grown from $5bn to over $60bn over the past four decades, the business had undoubtedly suffered some turbulence along the way. “It has weathered financial crises, armed conflict, volcanic eruptions, hurricanes and pandemics – SARS and Covid – while helping to build a more connected world,” he told delegates.
“Our industry has been boosted by waves of tourism as the Japanese, the Koreans and then the Chinese discovered travel,” Juul-Mortensen added. “But it has also been driven by socio-economic change – the first package holidays, the opening up of travel to the masses by low-cost airlines, and the popularity of cruises for the old, the young and everyone in between. We have seen Silver Surfers and Baby Boomers, Millennials, Gens X, Y and Z, and now we are preparing for Gen Alpha.”
Gen Alphas will be a tough nut to crack, Juul-Mortensen suggested. These digital natives born between 2010 and 2025 will eventually number 2 billion and will shape retail strategy for years to come, he opined. Viewing the world through social media with influencers key to their decision-making, Gen Alphas prize diversity, inclusion, sustainability and an easy in-store shopping experience.
“Taken together, all these factors mean that brand experiences in duty free and travel retail must now move beyond core physical products to tell a story that is relevant to their consumers’ lifestyle,” Juul-Mortensen argued. “That is not easy in a market where retailers and brands have limited space and where sales per square metre are closely monitored.”
In the show’s many pavilions and villages, there were a few signs that spirits producers are finally recognising that China’s slow post-Covid recovery and a weakening of traveller spending in many other markets are making for a challenging market.
Whisper it quietly, but value for money is back on the agenda after years of drinks companies banging the drum for premiumisation.
Affordable spirits
For instance, International Beverage unveiled a new range of Speyburn single malt cask-finished whiskies at the show. The three non-aged expressions – Speyburn Kentucky Bourbon Cask, Speyburn Bordeaux Red Wine Cask and Speyburn Jerez Sherry Cask – ranged in price from a modest £35 for the Bourbon Cask to a still-accessible £49 for the Jerez Sherry Cask.
Similarly, family-owned Ian Macleod Distillers, which has in recent years showcased some ultra high-end single malt expressions in travel retail, unveiled in Cannes a new core offering from its Highland distillery, Glengoyne. With a recommended price of €79.90 (£66.90), the Glengoyne Spirit of Time 12 Years Old First Fill Edition is matured in a combination of first-fill American oak bourbon casks and first-fill Spanish oloroso sherry casks.
In the world of white spirits, tequila was the hot ticket at last year’s TFWA World Exhibition, but last month the pendulum swung firmly (and rather strangely) back to gin. Diageo Global Travel unveiled a new travel retail-exclusive expression of its Ryan Reynolds-backed Aviation Gin.
Aviation American Gin Expedition Strength is bottled at 46.5% abv and is being rolled out to airports worldwide, most notably at Barcelona, where the product is being promoted this month via two cocktails – the Negroni Upgrade and Bee’s Knees.
Similarly, William Grant & Sons proudly launched two new travel retail-exclusive gins: Silent Pool Gin Mediterranean Expression, which features botanicals such as Italian juniper, Greek olive oil and Spanish orange blossom honey, and the sunset-inspired Hendrick’s Sunspell, which Hendrick’s global ambassador Ally Martin describes as bursting with “warm citrus” and “harmonious spices”.
He adds: “Try it with tonic or apple juice or create a twist on an aperitivo and combine equal parts Hendrick’s Sunspell, Italian bitter apéritif and red vermouth, topped with sparkling wine and garnished with three cucumber slices and an orange twist.”
Finally, Brockmans also unveiled two new expressions: the 47.3% abv travel retail-exclusive Brockmans Organic Gin, which uses the same recipe as the brand’s flagship Brockmans Original but differs with its organic grain spirit base and 100% organic natural botanicals.
The independent brand also showcased a new ultra-premium line extension called Wyld at a lavish Ritz Carlton launch party during the show. Limited to 3,000 units and priced at £350, Wyld features 15 “ethically hand-foraged” botanicals.
Such a flurry of new gin releases at a time when the overall gin category saw volumes fall 3% in GTR last year, according to the IWSR Drinks Market Analysis, is quite hard to fathom.
The play would appear to be that gin still has plenty of untapped potential in the premium-plus price bracket, but with this upper tier declining 7% globally in 2023, it’s still quite a gamble.
