Diageo Global Travel yesterday continued its compelling series of evening discussions, ‘The Sunset Sessions’, on the Majestic Beach at TFWA Cannes with the panel this time focusing on sustainable brand action in the travel retail industry.
Moderated by Moodie Davitt Report President Dermot Davitt, the panel discussing this key subject included Baileys Global Brand Director Jennifer English; Nestlé International Travel Retail Head of Marketing Tamara Spada; and Aer Rianta International Chief Operations and Business Development Officer Nuno do Amaral.
As consumers now look to the way in which their brands are made, sourced and sold, so evolving to build a sustainable brand footprint is a growing imperative in consumer goods. Finding innovative ways of creating sustainable packaging is just one area for action, and this was a major talking point at the event.
Jennifer English said on this theme: “Brands have a responsibility to support consumer decision making and demonstrate the action they are taking to support individual action. How ingredients and raw materials are sourced, made and grown, before they even get into a product. The production, the packaging, recycling, recycled content and recyclability, waste and shipping are all levers to pull. With the right action in these areas, we can make a significant difference.
“Diageo is looking to lead the industry to make changes in packaging – initially with a phased removal of the superfluous cardboard box. It has to be done in a measured and thoughtful way, so the consumer understands why some of their whiskies are no longer boxed – but it is an important step. Consumers want brands that make change simple.”
She added: “Within our brands at Diageo, I think we have a very specific role to play. The brands are the relationship between the company and the consumer. And consumers are motivated by brands and the messages [on sustainability] they receive from them – they’re surrounded by those messages every day.
“Brands are a powerful amplifier of the kind of change that needs to happen in the world to preserve the planet.”
Nuno do Amaral said: “We are committed to working with Diageo and our other industry partners to support and drive change at scale to create a more sustainable brand environment within the travel retail channel.”
On the subject of airport-retailer relationships, and the onus on retailers to operate more sustainably in the airport environment, do Amaral said: “I wouldn’t say there are tensions. The demands [from airports on sustainability] usually result in higher costs for the retailer, so in terms of the model, I don’t think we have all cracked the balance between profit and purpose.
“But we all need to be mindful of the margins, because we as retailers have very thin margins and the impositions from the airports have a big impact on our costs. We are willing to play the game and to factor that into the way we do business, offsetting [higher costs] by being more parsimonious in areas such as paper consumption, electricity consumption and introducing and other cost-lowering measures.”
Tamara Spada suggested that she would like to see the travel retail brands communicate more closely with each other on sustainability. She said: “We need to look at sustainability as an industry, at the moment each of us is working in silos [on this subject]. If we all banded together and explained what we’re doing, and how we are meeting these consumer needs and demands, then we will probably see a bigger step change in enhancing our credibility [on sustainability].”
She added: “We need to highlight the brands that are more responsible, that are focusing on sustainability so that when the consumer comes to the airport store they’re able to make the decision on choosing more sustainable brands themselves.”
The final Sunset Session takes place this evening, Wednesday 5 October, at 5-5.45pm on the beach next to Beach Village 1 at Majestic Beach Bar.
The topic of discussion will be Driving performance through diversity. Panellists include Diageo Global Scotch Director John Williams; Sarah Branquinho of Women in Travel Retail and Dufry Chief Diversity & Inclusion Officer; and Flemingo Travel Retail Category Head of Wines & Spirits, Perfume & Cosmetics Nandhini Srinivasan.
The Moodie Davitt Report Chairman & Founder Martin Moodie will moderate the session.
TFWA visitors can also check out Diageo’s exhibition space and bar at the Beach Village, Majestic Beach until Thursday 6 October.
