The Moodie Davitt Report is proud to launch a regular new column called The Spirit of Independence, in association with Tito’s Handmade Vodka. The series will focus on family, independent, entrepreneurial companies in travel retail, and on the personalities that lead and shape them. In our first column (which appeared recently in The Moodie Davitt e-Zine), we ask Claus and Gunnar Heinemann – Co-Owners of Hamburg-based family retailer and distributor Gebr Heinemann – about their careers, influences and core values.
The Moodie Davitt Report: You are synonymous with your own family business. Tell us about your values and those of your company.
Gunnar Heinemann: The family spirit and the values associated with it are what drive us. That means we support and respect one another at Gebr Heinemann.
Currently, getting closer to the consumer is the name of the game. To achieve this we sometimes even have to invest in concepts with an uncertain outcome. As a family business we have this ability.
This commercial freedom, combined with our personality, the openness for innovation and a high level of service orientation, have established Gebr Heinemann as a global player that can remain competitive in the long run.
Claus Heinemann: Strong relationships with our employees, a good working atmosphere, long-term thinking, and independence from banks – these are some of our most important values.
Tell us about your early years. Where were you born and raised?
Gunnar: I’m a proud Heinemann, born and raised in Hamburg, Germany. Certainly (and not just from my point of view) it’s the most beautiful German city to live in.
Claus: I was born in Hamburg, like the three previous generations of the Heinemann family.
Can you outline your early career, and how and when you entered the duty free business?
Gunnar: After finishing school and military service, I read for a degree in business economics at the University of Zürich, graduating in 1977. I also did two internships, in Paris and London. I entered the family business on 1 November 1978.
Claus: After I finished school I did an apprenticeship at the Deutsche Bank in Hamburg, followed by studies in international economics at the Ludwig Maximilian University in Munich. However my talent for sports like windsurfing, tennis and skiing was much more promising than my qualities as a student!
After some internships in the cigarette and liquor industry, I started work with the family company in 1979.
What was the duty free business like back then?
Gunnar: Back then Gebr Heinemann was a considerably smaller business, with two retail concessions at Frankfurt and Cologne/Bonn airports.
In those days our business was focused on where we came from: the distribution of duty free goods. That amounted to 80% of our business.Gunnar: Back then Gebr Heinemann was a considerably smaller business, with two retail concessions at Frankfurt and Cologne/Bonn airports.
Claus: At that time the shipping business was relatively strong in comparison to the airport business – mainly supply contracts with European customers, such as the so-called ‘butter boats’, which were small day-trip ships, mainly on the Baltic Sea. As these ships crossed the Customs borders, e.g. between Germany and Denmark, products like perfumes, spirits and cigarettes could be purchased duty free. Gebr Heinemann entered the retail business in 1968 with the concession at Cologne/Bonn Airport.
How has the business changed through the years, and has that been for better or worse?
Gunnar: For us, it has decidedly changed for the better. We have enjoyed strong growth in duty free retailing and have become an established global player. Today we are the market leader in Europe and have expanded to Asia Pacific and the Americas – and of course to Australia, with the world’s largest airport duty free shop at Sydney Airport under the Heinemann brand.
Claus: We succeeded in enlarging our business from a distributor and a small German duty free retailer to an established global company. Today, 80% of our business is conducted outside Germany.
If you had to name one highlight of your career, what would it be? And any lows you would single out?
Gunnar: I consider every new customer and retail concession a highlight. A low for us was losing the battle to retain duty free within the European Union.
Claus: A highlight was the signing of the world’s biggest duty free contract for the new airport in Istanbul for a period of 25 years. And as Gunnar mentioned, the loss of the duty free business within the EU in 1999 was a real threat to the company at the time.
Who have been the major influences on you in your time in the industry, and the people you have respected the most?
Gunnar: Colm McLoughlin, John Couri, Zino Davidoff, Heribert Diehl, my father and my uncle.
Claus: First of all, my father, who was a well-respected, intelligent and wise businessman. Also, Heribert Diehl, one of the most internationally minded and fascinating people in our industry; and John Couri, with whom we had a wonderful and successful partnership in the USA.
In a business dominated by big organisations and big brands, is there still a role for the independent, entrepreneurial or family spirit? How should that be nurtured?
Gunnar: Oh yes, there is definitely a role for family-run businesses. In this market, the ability Gebr Heinemann has to think and act as an international partner is a very valuable asset. Our story speaks for itself: thanks to the recent market consolidation, lots of young people are joining us to explore an opportunity in a family company with our values and long-term focus.
Claus: Just to name a few benefits of a family business: independence, fast decisions, an organisation with lean corporate structures, and a lot of flexibility.
What philosophy guides you in your career and life?
Gunnar: Only the gentle are ever really strong.
Claus: Develop a passion for your life, which will lead to a deep sense of satisfaction.
