“I’m excited to come back into the world of travel retail. While some things remain the same, much has changed and there are many opportunities.”
So says Brown-Forman Global Travel Retail Vice President and Director Nick Mogford, speaking to The Moodie Davitt Report at TFWA World Exhibition after he returned from a senior domestic market role in Europe to lead the drinks group’s travel business. In his almost 13-year career with Brown-Forman, Mogford spent the first eight in travel retail.
“As I come back now after a domestic role I have a new appreciation for travel retail,” he says. “Many of the team are familiar but we have grown in numbers and of course the portfolio has also significantly evolved.
“We have divested brands such as Southern Comfort and more recently Finlandia that were in categories that were perhaps not growing as fast as we would like or were not at the right price points.
“Today we have a very strong presence in what are arguably five of the highest growth potential sub-categories within spirits.”
Leadership in American whiskey is at the core of the offer. “Old No. 7 is still our focus, but we are really looking to premiumise that now with line extensions and more premium price points,” says Mogford.
The addition of Ron Diplomático introduces rum to the range at a super-premium-plus level – in a category expected to grow sharply in travel retail in coming years.
Gin Mare, another recent acquisition, also offers rich potential. “We have seen gin plateau at total category level but there is still good growth at the higher price points. That is particularly the case where gins have got a story to tell and are based around the experience, as Gin Mare is.”
The single malts range, comprising Benriach, The Glendronach and Glenglassaugh, acquired in 2016, has been the focus of development since, with limited allocation for travel retail to date. “We feel we are at a tipping point on single malts. Speaking to Indian customers, there is huge demand and malts are becoming their growth engine.”
In tequila, a business that is seeing “incredible growth rates”, Brown-Forman plans to extend the focus on the Americas to other regions that are today seeing double or triple-digit growth.
On the big strategic priorities in his new role, Mogford says: “A lot of good work has been done in recent years so it will be evolution, not revolution.
“American whiskey will continue its journey as our core category. When you look at premiumisation in travel retail, American whiskey has not yet got to the same level compared to single malt Scotch or Japanese whisky. So we see a big runway for this. Launching Jack Daniel’s American Single Malt as a travel retail exclusive is one step in this direction, with high quality liquid and packaging, plus two more expressions in our Bonded series entering travel retail soon.
“Plus we’re doing a lot around Woodford Reserve, with our extended range and experiential campaigns in travel retail. While there may be a slowdown in travel retail at the high end, this is a brand that we’re seeing continue to grow in all regions. We see it as a way to unlock the potential of American whiskey, particularly in Asia, because it taps into that sense of a luxury lifestyle.”
In Cannes Woodford Reserve was showcased with a display of the brand’s Double XO, finished in XO Cognac casks. The Master’s Collection was also in the spotlight, including a sneak preview of the Sonoma Triple Finish and the Batch Proof Series 121.2.
Beyond American whiskey, the company will focus heavily on accelerating the growth of its new acquisitions in rum and gin.
“Diplomático in particular already has a global footprint, with the weight of Brown-Forman behind it, there is a really big opportunity ahead of us. That will be about building distribution across all markets and supporting that with promotions and staffing.”
For Gin Mare, the early growth drive will come in Europe where the brand has a strong presence in Italy and the UK, but Mogford says the Americas is a further opportunity area.
As a business, Brown-Forman’s traditional strengths by region have been in the Americas and Europe. That will remain the case but with a greater emphasis on Asia Pacific with the updated portfolio. “The growth of our single malts, alongside the other categories, will help rebalance this weighting over time, with more coming from Asia.”
With softening consumer spends in many markets, trading conditions are not easy at the higher end of the spirits category in travel retail today, as many brands attest.
“The current situation will probably continue over the next 12 months but it will improve. We see a strong influence from the Indian traveller in the next stage of travel retail’s development. With other growth markets taking great influence, plus our presence across high-growth spirits categories, there is a lot to be positive about.” ✈
