“Travel retail will always be there in one form or another, but not necessarily be travel retail as we’ve known it,” says Monarq Group Founder and CEO Robert de Monchy as he ponders how industry recovery will take shape post-COVID-19.
“The world is rapidly changing. Going forward, I foresee that hybrid travel retail models will become more mainstream, particularly those with significant ecommerce elements.”
In the last year, Monarq quickly pivoted to embrace a ‘hybrid model’ of its own to adapt to the COVID-19 crisis. The company explored what he calls strong pockets of business in border stores. It also rapidly enhanced its social media and ecommerce operations and struck new deals with players like Amazon, Rappi and Mercado Libre. And it launched its own ‘Monarq Social Club’ to engage with customers during lockdown.
A further testament to its digital acceleration is the group’s upcoming participation at the Summit of the Americas — A Virtual Experience, where it will be showcasing its premium portfolio of spirits brands.
In this interview, we (virtually) sit down with Monarq Group CEO Robert de Monchy and International Marketing Manager Nicoline van Woerkum to discuss the brand’s distinctive partnership strategy, the importance of social media and ecommerce, and its ambition to captivate customers at every point of their journey.
What is the major focus for Monarq Group at the Summit of the Americas – A Virtual Experience? What lines, launches or campaigns will you emphasise and showcase?
Robert de Monchy: We usually showcase our latest product innovations at the Summit of the Americas, and this won’t be different during this year’s digital show. We will be introducing our latest launches, new brands, line extensions, innovations and campaigns.
Of course, we have a lot of exciting new things to show to our customers like our Jack Daniel’s Apple, new Peroni innovations, Asahi Beer, Barbancourt Rhum, Benriach Single Malt, Cono Sur and Código 1530, just to name a few.
What are your major targets by geography, channel or retailer type as you seek to tap into a recovering market?
RDM: In terms of geography, we are focusing on both the domestic markets (excluding the US and Canada) and travel retail markets of the Americas, where we operate as a company.
Obviously, we have — and will continue to — maintain our normal standard of service for our travel retail airport partners, even if this business is currently heavily impacted by the crisis. Until flights and cruises return, our focus will remain on the duty free border stores where we fortunately see strong pockets of business.
How do you view the continuing impact of COVID-19 on Americas travel retail and the wider industry?
RDM: Obviously, the pandemic has had a major impact on Americas Travel Retail and we are yet to see the end of it. I believe we will see a continuing shake-up and further consolidation of the industry.
Last year, Monarq Group secured/extended new regional distribution deals with Código 1530, Cono Sur and Roust. Could you tell us more about your partnership strategy?
RDM: Our partnership strategy is to focus on a limited number of premium leading and innovative brands in each of the relevant categories.
Cono Sur is new to our portfolio. This leading wine brand from Chile is a pioneer in organic wine-making, which caters to the new consumer demand for organic products. Código 1530 has a strong portfolio of super premium tequila products, which includes the naturally rosé coloured tequila, Código Rosa.
For many years we have been working with Roust Group for their famous Zubrówka Vodka. Recently, we have extended this successful partnership to include Russian Standard Vodka and Gancia Wines too.
At the Summit, we will highlight the newness in our portfolio and also spotlight our premium global brands, such as the Heineken, and the Brown-Forman and Zamora portfolios.
How have you embraced digital to engage with customers throughout the pandemic crisis and what digital innovations can we expect from Monarq Group at the Summit of the Americas?
Nicoline van Woerkum: We aim to capture the attention of our customers at every step of their journey, whether they are planning a trip, booking a flight or visiting a local bar. This is why we are focusing on enhancing our brands’ social media and ecommerce presence.
To promote our brands on social media, we launched the Monarq’s Social Club at the beginning of the pandemic. Monarq’s Social Club is an online platform, hosted mainly on Instagram, where we promote our brands’ digital initiatives and provide access to exclusive masterclasses, Q&A sessions, virtual tastings, live distillery tours and more.
This ‘new normal’ and strong engagement with the industry community make our platform a great tool to promote our brands in a more intimate way on social media.
In terms of ecommerce, we have improved our partnerships with Amazon, Rappi and Mercado Libre, which are some of the world’s largest ecommerce platforms. We also recently recruited a full-time digital marketing specialist to enhance online engagement with our social media audience and support our ecommerce marketing campaigns.
During the Summit of the Americas, customers will be able to book consulting sessions with our digital marketing specialist to learn about the latest social media and ecommerce trends. They can also discuss solutions to the challenges they are facing in the ever-changing digital landscape of today.
How do you think the channel can and should engage with travelling consumers to ensure a sustained recovery?
RDM: Travel retail will always be there in one form or another, but this may not necessarily be travel retail as we’ve known it, since the channel started some 70 years ago.
The world is rapidly changing. Going forward, I foresee that hybrid travel retail models will become more mainstream, particularly those with significant ecommerce elements.
