SOUTH KOREA. Lotte Duty Free will sell duty free liquor & tobacco at Gimhae International Airport in Busan on a temporary basis after the ejection of former concessionaire Dufry Thomas Julie at the end of January. Lotte Duty Free is the incumbent perfume & cosmetics concessionaire.
As reported, Korea Customs Service terminated the Dufry Thomas Julie contract on the basis that the joint venture did not constitute a small and medium-sized enterprise (SME), the basis on which the liquor & tobacco concession had been tendered and awarded.
The agency claimed that Dufry, a global travel retail giant, was a majority rather than minority partner in the joint venture as claimed.
Last month Avolta vehemently denied any claim of misrepresentation in a statement to The Moodie Davitt Report, “We strongly refute claims about any wrongdoing on our side. We have been, and always will be, compliant with the laws and regulations in our business operations,” the company said.
“We are actively cooperating with Customs and local authorities while addressing the matter, and are confident that this will be resolved in our favour.”
Dufry Thomas Julie, a partnership between Dufry (now Avolta) and Korean firm Thomas Julie & Co, had been operating at the Busan gateway since early 2014. In late 2018 it was awarded a five-year contract extension.
Quoting Korea Customs Service, Yonhap News said a tender for a new SME liquor & tobacco concessionaire will be held in due course, with the winning candidate expected to be in place by the second half of the year.
In related news, Korea Customs Service has renewed Kyung Bok Kung Duty Free’s arrivals store contract at Incheon International Airport for five more years, the agency confirmed. ✈
Note: The Moodie Davitt Report is the industry’s most popular channel for launching commercial proposals and for publishing the results. If you wish to promote an Expression of Interest, Request for Proposals or full tender process for any sector of airport or other travel-related infrastructure revenues, simply e-mail Martin Moodie at Martin@MoodieDavittReport.com.
We have a variety of options that will ensure you reach the widest, most high-quality concessionaire/retailer/operator base in the industry – globally and immediately.
The Moodie Davitt Report is the only international business media to cover all airport or other travel-related consumer services, revenue-generating and otherwise. Our reporting includes duty free and other retail, food & beverage, property, passenger lounges, art and culture, hotels, car parking, medical facilities, the Internet, advertising and related revenue streams.
Please send relevant material, including images, to Martin Moodie at Martin@MoodieDavittReport.com for instant, quality global coverage.
