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THIS YEAR’S IAADFS SHOW seeks to educate as well as entertain. Now in its 48th year the International Association of Airport Duty Free Stores Show of the Americas is the longest running duty free industry event. This year’s exhibition takes place at its usual venue at the Orlando World Center Marriott hotel between April 3 and 6, a fortnight later than its usual mid-March slot.

The trade show has a popular, tried-and-trusted format, which has changed little over the decades. The hot Florida sunshine and the informal attitude to business of the predominantly Latin American visitors who attend have traditionally made the show the most relaxed of the duty free industry’s three major exhibitions.

The Americas duty free business is facing a number of challenges at present, however, which perhaps explains why this year IAADFS has decided to inject a more serious tone into the usually light-hearted proceedings. A new education session has been scheduled for April 4, which will feature Airports Council International director general Angela Gittens, and Peter Mohn, owner and CEO of travel retail research consultancy M1nd-set.

Gittens will share her insights about the current state of the travel industry and the ramifications for the duty free business in the Americas. Mohn will provide an overview of new research findings by his firm concerning traveller buying habits in North America and the Caribbean. Mohn will also follow up his Monday morning presentation with a more in-depth workshop presentation of the new research data on Tuesday morning.

As well as the three-day Trademarket and the new education session, the IAADFS show will feature its usual calendar of social events, which includes the Opening Reception on Sunday April 3, Tuesday’s night Gala Evening, and the show’s Club Americas on Monday and Tuesday nights.

More than 200 suppliers will be exhibiting, including major drinks players such as Bacardi Global Travel Retail, Brown-Forman, Diageo Global Travel & Middle East and Rémy Cointreau Travel Retail Americas.

Among the new liquor exhibitors this year are 750 Brands, an importer of Italian wines and liqueurs, Panamanian firm Global Premium Vodka, whose portfolio includes Sugarloaf Aged Vodka and José Ignacio Vodka, and the Calgary-based Minhas Microbrewery and Distillery.

The Americas duty free liquor market, which accounts for less than 20% of the overall global market by volume, is currently facing a number of significant challenges. The region’s duty free airport business has traditionally relied on the spending power of Asian and Latin American travellers, but the relatively high US dollar and the weakness of regional economies such as Brazil and Argentina are acting as a brake on sales.

The Zika virus, the mosquito-borne disease that experts say is possibly linked to microcephaly in babies, is another external threat to the region’s duty free trade this year.

Countries are already warning pregnant women and those planning to become pregnant to avoid travel to affected areas, including popular tourist destinations such as Puerto Rico, the US Virgin Islands, Barbados, Brazil and Mexico. Kenya has even warned it could pull its team out of the Rio Olympics this summer due to concern over the virus’ spread.

On a brighter note, Canada’s duty free business seems to be performing well, buoyed by the rising power of the US dollar, which has encouraged US travellers to travel and spend north of the border. Back in 2012 the US and Canadian dollars were at parity, in February this year one US dollar was worth CAD1.39. Consequently, liquor sales at Canada’s duty free border shops were up over 12% in 2015, and an even higher 15% at the country’s airports.

This encouraging trend looks set to continue in 2016, but for all the reasons outlined above, the picture for the rest of the North American and Caribbean duty free liquor market is sadly not as rosy.

TEQUILA CORRALEJO TO TARGET GIFT BUYERS

Fraternity Spirits will unveil a Special Edition Tequila Corralejo gift box at the IAADFS show.

The new gift box celebrates Tequila Corralejo’s 20th anniversary and features illustrations of the brand’s historic hacienda. Other products on the company’s stand will include the Mexican rum Ron Prohibido and the chocolate liqueur Horus.

“The Americas is an important region for us both domestically and in travel retail,” said Fraternity Spirits CEO Raffaele Berardi. “Sales of tequila in the Americas have generally been growing above the average of spirits for the past few years, and we are continuing to see that trend reflected in our own business.

“We have a strong portfolio of Tequila Corralejo products and have seen very encouraging results, so our aim [at IAADFS] is to continue this success and look for ways of expanding our distribution in the region.”

PATRÓN GETS EXCITED ABOUT NEW BOTTLE SIZES

The Patrón Spirits Company is introducing new 1-litre travel retail versions of its core tequila line at the IAADFS show, replacing the existing 700ml and 75cl bottle sizes used in the channel.

The Las Vegas-based company will also highlight the ultra-premium Patrón en Lalique extra añejo tequila it unveiled at Cannes last year, priced at £4,950 per bottle and limited to 500 units. The spirit is packaged in a handmade Lalique decanter based on the weber blue agave plant the tequila is made from. Other recently introduced lines on show include the Patrón Extra Añejo 5 Años duty free exclusive and the Roca Patrón range.

Patrón duty free director for the Americas Stephane Gonzalez said: “Our main objectives this year are to present our new offerings, collaborate on programme ideas, and to communicate our excitement over our new 1-litre Patrón tequila bottle.

“Our objective is to see this [size] retailed at the same price as our current size bottle to offer consumers increased value for money.”

Gonzalez admitted currency fluctuations in the Americas were making the regional trading climate difficult. “Currency fluctuations are an ongoing challenge, but we’re fortunate that consumers look to the duty free channel, especially in periods of uncertainty—to find price promotions, incentives and gift-with-purchase offers. So fortunately we’re not as impacted as domestic retailers.”

RÉMY TO SHOW BRUICHLADDICH EXCLUSIVES

Rémy Cointreau Global Travel Retail will launch a travel retail exclusive variant of Bruichladdich single-malt whisky in Orlando.

Head distiller Adam Hannett has created Bruichladdich Laddie Eight to demonstrate the complexity of younger whiskies and the handcrafted production process at Bruichladdich distillery. Laddie Eight is a 50% abv unpeated single malt made without chill filtering or added colour. It was matured in a mix of European and American oak casks for eight years.

Rémy Cointreau will also unveil a new Port Charlotte expression from Bruichladdich. Named after the now closed Port Charlotte Islay distillery, which stopped production in 1929, Port Charlotte 2007 CC: 01 is a heavily peated eight year-old single-malt matured in ex-Cognac casks from France.

SALES SOLUTIONS FROM DANZKA VODKA

Waldemar Behn is presenting new sales solutions with Danzka Vodka twin and 4 x 1-litre packs.

“Multipacks are the new black in global duty free/travel retail and we look forward to presenting a couple of nice solutions in Orlando,” says Torben Vedel Andersen, global sales director. “Our twin pack is very flexible when it comes to outer decoration and our 4-litre briefcase style pack is light and handy. Danzka vodka is the world’s best travelling vodka also in 4 packs”.

Danzka vodka is said to be made using an advanced production
process – a combination of water extracted from the underground that has been demineralised, 100% whole grain and a six-column continuous distillation process.

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US WHISKEYS WILL CONTINUE DUTY-FREE GROWTH, SAYS BROWN-FORMAN

Brown-Forman Global Travel Retail managing director Marshall Farrer has said that the company’s whiskey portfolio is growing well in the Americas travel retail market despite the difficult trading conditions.

At the IAADFS Duty Free Show of the Americas in Orlando next month Brown-Forman will be exhibiting the travel retail-exclusive Jack Daniel’s 100 Proof, the cinnamon-flavoured Jack Daniel’s Fire, as well as the 50% abv, limited-edition Jack Daniel’s Sinatra Century, which was released last year.

Brown-Forman will also be using the show to celebrate the 70th anniversary of barrel making at its Louisville cooperage in Kentucky.

“Jack Daniel’s is performing well [in travel retail] at numerous price points, as is Woodford Reserve,” said Farrer. “Our founding brand, Old Forrester, is enjoying rapidly growing popularity in the US and we feel that trend will translate well in travel retail.

“As we have said many times, the popularity of American whiskey stems from several sources, not least of which is the popularity and demand for authenticity and premiumisation. We are starting to see our premium tequila Herradura benefit from this trend toward authenticity.”