 |
Brand-building expert: Horizon International Duty Free chief Jose Chao |
AMERICAS. Fledgling agent and distributor Horizon International Duty Free made its travel retail exhibition debut at the 2011 IAADFS Duty Free Show of the Americas with a roster of new and established brands.
The company, which began trading in January 2011, is headed by Jose Chao, who was a hugely influential figure in the growth of the Bacardi brand in the duty free channel for many years. Now, Chao says he is intent on bringing the full force of his brand-building skills to his new venture.
Talking to The Moodie Report at the Orlando trade show in March, the effervescent Chao explained his fresh approach. “Horizon International Duty Free is all about brand-building. I had a reputation for brand-building at Bacardi and of putting the consumer at the centre. Horizon is combining a corporate policy with an entrepreneurial spirit to compete effectively with the big companies.”
Chao, who enjoyed a hectic week of preview meetings with duty free clients in Orlando, says his aim is to serve as an agent, distributor, and/or marketing consultant. His firm, which specialises in products at the “premium and above” end of the market, also offers complete logistics services, making it one of the few truly integrated travel retail companies, he notes.
Florida-based Horizon already has five brands under its belt: Vice Vodka Icewine, a brand new cocktail made from Canadian quadruple-distilled vodka and vidal icewine; Tortuga Rum Cake, a tropical gourmet speciality; U’Luvka Polish Luxury Vodka, a product with a striking sculptural glass bottle design; Brooklyn Gin, a small-batch premium gin; and El Secreto tequila.
Chao emphasises the importance of targeted marketing and promotional programmes as he goes about building these brands in the travel retail channel. “Programmes are important – you have to invest for the target consumer.”
Vice Vodka Icewine
Turning first to Vice Vodka Icewine, Chao enthuses: “We’re really excited about this great new product. Vodka is exploding in popularity and icewine is hugely popular with Asians.”
 |
Vice Vodka Icewine, made from Canadian vodka and vidal icewine, is dubbed a “one pour cocktail” |
In duty free, Horizon is retained to distribute Vice throughout the Americas, as well as in the UK, Spain, Germany, France, Italy, Malaysia, and Thailand. “We are entrusted with establishing global pricing, distribution, merchandising, and promotion,” he says.
Vice Vodka Icewine, made from Canadian quadruple-distilled vodka and vidal icewine, is dubbed a “one pour cocktail” which does not require any additional mixing. The 21%abv product is the brainchild of Steven Ciccolini, who helped build Inniskillin Icewine into the duty free legend it is today. A few years after Inniskillin’s parent company Vincor came under the control of US liquor giant Constellation Brands Inc in 2006, Ciccolini decided to forge an entrepreneurial path and launch his own product using the world-renowned vidal icewine from his Canadian homeland. The wine comes from Canada’s award-winning Vineland Estates Winery in Ontario, where Ciccolini’s business is based.
Both highly motivated, Ciccolini and Chao share a similar entrepreneurial spirit, and Ciccolini observes that their knowledge of world markets is complementary.
Having been launched on the Canadian domestic market by the LCBO, the IAADFS show saw Vice’s debut into duty free, although Ciccolini adds that the product is already available in Canadian border shops. Horizon is targeting travel retail distribution in locations such as the East and West Coast of the US, Toronto, Vancouver and Singapore. The in-store launches will be supported by sampling programmes, and a gwp will comprise a portable wine cooler and an ice cube maker.
The marketing images on display at IAADFS were bold and distinctive, with a distinctly glamorous feel. According to Ciccolini, initial research shows that 70% of purchasers of Vice are women.
“Vice is the world’s first and only vodka icewine; it’s a new and sexy product for the market,” asserts Ciccolini. “The response from buyers has been great – they seem to be tired of seeing images of vineyard barns and grapes. We want to make it fun. There is an appetite for new products after a hiatus. Vice is also 100% Canadian, so it is an authentic product with a sense of place.” Vice retails at US$32.99 to US$34.99 for a 500ml bottle.
 |  |
Left: Horizon is U’Luvka’s Americas duty free distributor; Right: Tortuga Rum Cake’s six-pack travel presentation | |
U’Luvka Polish Luxury Vodka
As U’Luvka’s exclusive duty free distributor in the Americas, Horizon is developing the brand’s domestic distribution network in the Caribbean and Latin America, including Mexico. It is already available in more than 60 domestic markets as well as 40 duty free markets outside the Americas.
According to Chao, duty free retailers are now looking to trade up in response to consumer demand. With its emphasis on its distinctive sculptural bottle shape and upscale dark brown and silver embossed gift packaging, U’Luvka premium Polish vodka “is a luxury brand that adds prestige to stores”, he says. A special gift pack containing a 750ml bottle and two engraved Polish vodka glasses retails at US$50, while a compact 10cl bottle with two glasses is priced at US$20. An impressive looking 1.75 litre bottle for on-shelf impact is also available, containing six glasses and priced at US$110.
 |
The marketing image for Vice Vodka Icewine is bold and distinctive, with a distinctly glamorous feel |
Mark Holmes, the founder of U’Luvka Polish Luxury Vodka, told The Moodie Report at the IAADFS show that a gwp had been developed for the bottle in the form of a black neoprene jacket inspired by a body-hugging Alaia dress. World Duty Free had recently listed the product which had already exceeded sales expectations, he said. The travel retailer has just introduced a £100 (US$150) gift pack at its London Heathrow Terminal 5 store. Dubai Duty Free also carries the brand.
Tortuga Rum Cake
Tortuga Rum Cake, a major export earner for the Cayman Islands, is embarking on a global expansion push outside its Caribbean stronghold. The product is being marketed by Chao as a tropical-themed, premium-priced gourmet product aimed at travellers from countries such as the Nordics, UK and Germany. To this end, a special travel pack has been developed. “We aim to start with 25 lighthouse locations such as Phuket, Australia, Malaysia and Dubai which will be a springboard to other areas,” says Chao.
Brooklyn Gin
Described by Chao as a “destination gin”, Brooklyn is a small-batch premium gin produced in New York and developed by a former Bacardi executive. The 750ml bottle has an artisanal, handcrafted look, in line with the trend for locally made, authentic products, explains Chao. Already sold by DFS, Duty Free Americas and International Shoppes, the product retails at US$34.99 to US$39.99. The gin is currently being marketed in many local New York neighbourhood bars.
El Secreto tequila
El Secreto, a 100% agave tequila, is a premium product retailing at between US$35 and US$45 for a litre bottle. The reposado variant is being put forward for medal award contests, notes Chao.
Clearly, Chao’s ambitions do not stop with the five brands listed above. Douglas Andrews recently joined Horizon with a remit to expand the company’s activities into all product categories. Andrews brings with him a wealth of experience, having worked for a number of beauty, watch and accessories companies, including P&G Prestige, Giorgio Beverly Hills and Lancaster.
As he looks to expand his new firm, Chao envisages establishing different departments for each product category. There’s certainly much more to come on this particular horizon.
For details, contact Jose Chao, Horizon International Duty Free-President, 3511 NW 113 Court, Doral, Florida 33178, US, tel: +1 305 716 9993, fax: +1 305 591 3547, or e-mail jchao@horizonintdf.com
