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“I knew from my experience in creating Goldkenn that we should aim at the gifting habit of Asian travellers. This is the idea behind the Primalac Goldmilk Project.“ |
Steven Goldstein Founder of the Primalac Goldmilk Project |
Editor’s introduction: Steven Goldstein is one of the great pioneers and entrepreneurs of travel retail. In 1980 he and Christian Belce Kennedy combined their family names to create a unique brand of chocolate, which brought together two quintessential Swiss symbols, banks and chocolate.
The result was Goldkenn Goldbar, a replica of the 12.5 kilo gold bullion bars stored in Swiss bank vaults. The launch started its own commercial goldrush, notably in duty free, a then fledgling channel for chocolates, which Goldkenn targeted with huge success.
About 12 years after he left Goldkenn, the serial entrepreneur is a man on a mission once again. His concept? Baby milk powder, targeted specifically at the Chinese traveller. He spoke to Martin Moodie about the Primalac © Goldmilk Project.
The Moodie Report: Where did the idea come from for this new product and how long has it been in development?
Steven Goldstein: I have continued to travel extensively around the world since my Goldkenn time. I have noticed that most of the travel retailers were pushing brands to the Chinese travellers based purely on price savings or advertising campaigns in China.
I wondered if there was a product or product line that was truly based on a genuine Chinese customer demand. That’s easier said than done and it took me some time to identify it.
I must say that reading the net version of the South China Morning Post every morning was an eye-opener. Ever since 2008, some very bad news has emerged now and then about powdered baby milk.
Due to the greed of some people, the milk formula became tainted with melamine that killed and maimed many babies.
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Coming to a travel retail store near you soon: Mock-ups of the Primalac milk powder product (the final product will be bi-lingual in Mandarin and English) |
The problem, already dramatic, became accentuated by the long-running Chinese government rule of one child per family. Obviously each child is especially cherished by their parents. That rule has recently been adapted and from now on a second child will be welcome if one of the parents is an only child. But that situation will not change the parents’ attachment to their children, and will actually help to increase the market.
What is certain is that consumer confidence has been lost in locally sold baby milk products. So most Chinese travellers started buying baby formulas all over the world in large quantities to bring back home. Infant formulas are very seriously controlled products and have lots of regulations attached to them before being allowed on the market.
So, how did you go about the challenge?
The biggest problem was to find the right product. This took me a long time, nearly a year in fact. I wanted the best Swiss product, and I found Primalac Premium products, which could assure parents that infants and toddlers are given the best possible start in life. All Primalac Premium formulas are based on the latest research data and legal standards, and are produced according to the Swiss quality guidelines using fresh milk from Swiss cows. We have selected the best product with the finest ingredients we can find worldwide.
I knew from my experience in creating Goldkenn that we should aim at the gifting habit of Asian travellers. This is the idea behind the Primalac Goldmilk Project.
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“I wondered if there was a product or product line that was truly based on a genuine Chinese customer demand“ |
And, as with Goldkenn, you’re particularly focusing on the travel retail channel?
Yes. The Chinese culture demands that travellers heading overseas from China should bring back gifts for their friends and relatives. I have given much thought in terms of how to combine the gifting motivation of Chinese consumers and their love for children.
What are your roll-out plans?
I shall start with a major European travel retailer, which will have a limited exclusivity for this region beginning in March-April 2014. I would like to apply the same policy for operators in the Middle East and Asia. I hope that before the end of 2014 it will have worldwide coverage.
There are, as you mentioned, certain restrictions about the product category in terms of what can be imported into China. Tell us how you approached these issues.
The Chinese government has issued strict regulations about the quantity of baby formula that can be imported free of taxes each time a traveller crosses the border. The allowance currently stands at 1.8kg. Our twin packs of Primalac 1, Primalac 2, and Primalac 3 will not exceed existing or future permitted limits.
What makes Primalac attractive compared to any travel retail alternatives?
To the best of my knowledge, for the time being, there is no alternative to Primalac infants’ formulas in travel retail.
Steven you are no stranger to travel retail and duty free, having founded one of its great success stories, Goldkenn, in the 1980s, famous for its iconic Goldbar chocolates. For newcomers to the business, tell us about that story.
Goldkenn is the contraption of my name and my co-founder Christian Belce Kennedy’s, who has been my partner for nearly 30 years. It has been a great friendship. When we launched our chocolate company all our major competitors laughed at us and predicted that we would disappear in less than six months but they were wrong.
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An artist’s impression of how Primalac could be merchandised in the airport environment |
Goldkenn still exists after 30 years and has become a world brand. The first sales of Goldkenn chocolates were made out of the trunk of my car in front of the Cannes duty free exhibition venue as we couldn’t enter, having no invitation!
Soon our “˜golden girls’ became famous and our sales took off throughout the world. We had found the right mixture of Swissness, gold and chocolates.
My new Primalac venture in the travel retail market is also based on Chinese travellers’ recognition of the high quality, real value and authenticity of a genuine Swiss product.
What have you been doing in the interim years since Goldkenn?
Since I left Goldkenn I have been very active representing St. Kitts and Nevis at the UN in Geneva, especially at the Human Rights Council and other United Nations offices. I also wrote three books in French on true crime and travelled extensively around the globe to ensure that I did not lose sight of what the trends were.
Steven, you struck gold once in travel retail. Can you do it twice?
If I believe what some of my contacts in the business say, then, yes, it is a good possibility.
Steven Goldstein |
E-mail: steven.goldstein@axions.ch |
