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Paul Francis: Big growth ambitions for Bacardi’s Asia Pacific travel retail business |
Bacardi Global Travel Retail’s Asia Pacific division is setting its sights on another year of double-digit sales growth in 2012/13, and aims to account for one-quarter of the brand owner’s business in the channel next year, from 23% today. That’s according to Bacardi Global Travel Retail Regional Director Asia-Pacific Paul Francis, speaking to The Moodie Report at this month’s TFWA Asia Pacific show.
The company’s financial year ended in March, and all of the company’s brands climbed by double digits in sales in Asia Pacific travel retail, with strong performances in volume and value terms across the portfolio, said Francis.
“Passenger numbers climbed during the year, which helped, but our brands performed very strongly even against that growth,” Francis noted. “The PRC traveller is vital, as everyone recognises, but we are seeing other major influences on the business too. The Indian consumer is increasingly important, even if their spend per head is not at the level of the Chinese; plus we are seeing tremendous growth among other nationalities, such as Singaporeans, Malaysians and others.
“What do we need to bring to the table to nurture that growth? Innovation is one element, and that will continue to be a key driver. The consumer in this region is seeking high value, high quality spirits and that will underpin our growth in the year ahead.”
From the Bacardi brand, spiced rum OakHeart is a vital part of its innovation drive. The brand has just launched via DFS at Singapore Changi Airport in the region, and will roll out to other markets soon.
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Bacardi OakHeart has just been launched in Asia Pacific travel retail through DFS at Singapore Changi Airport; pictured are guests at the brand owner’s party to mark the launch during TFWA Asia Pacific this month |
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As reported, the company has also introduced a rare and exclusive vintage rum. To honour 150 years of Bacardi craftsmanship, eight Maestros de Ron, all Bacardí family members, have combined their talents to create a limited-edition product, Ron Bacardi de Maestros de Ron, Vintage, MMXII. “It’s the first time such a product has been created at this level by Bacardi, so it’s very exciting,” said Francis.
Bacardi Global Travel Retail also unveiled a rare expression of its Baron Otard Cognac at this month’s TFWA Asia Pacific show. Only 2,500 bottles of Baron Otard Vintage 1972 are available, each composed of a single eau-de-vie from the Petite Champagne region of Cognac. Described as “a Cognac for true connoisseurs”, Baron Otard Vintage 1972 has been aged for 40 years. It is priced at approximately US$550 for a 70cl bottle.
Francis said: “It’s an opportunity to talk about the history and heritage of Otard, and most importantly about the quality of the liquid. The challenge is to introduce consumers to the brand, but it will be a key focus for us in the year ahead.”
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Bacardi is toasting its 150th anniversary with activities across the world (pictured is Miami Airport) |
Grey Goose remains a “star performer” in the Bacardi group portfolio, though white spirits remain a challenge in Asia Pacific, where Cognac and whisky dominate the spirits market.
Francis said: “White spirits is all about education. The consumer in Asia is used to drinking a spirit neat or on the rocks, so we really need to communicate the mixing culture, what juices can add to flavour. Once they’re introduced to Grey Goose, consumers really love the brand.”
Gaining the opportunity to engage with consumers is among the priorities for the brand owner in the year ahead, noted Francis. “From retailers we’d like to see more opportunity to showcase our brands. We’d also like to see much more sharing of passenger and consumer data from the retailer and airport side too. The more intelligence we have, the better we can help them drive their business.”
