US. Allied Domecq Duty Free (ADDF), now with Malibu onboard, reported success across a raft of initiatives at Orlando. Following on from the launch of its wine portfolio into global duty free last September, one focus at the IAADFS show last week was to transfer, from Europe to the Americas, some of the progress ADDF has made in wine merchandising.
The group now has a portfolio of 150 wines and is continuing its focus on encouraging consumers with gift packs, developing new point of sale with a “family feel”, twin or triple packs and introducing wine racks for retailers with tasting cards.
“Wine is becoming a much higher focus,” said ADDF director of wine development Peter Ayling. “Most of the work we have done so far with wines has been in Europe. Our whole focus is about gifting concepts and we can answer all range, pricing and margin requirements.” An example of success in gifting recently for Allied is the Perrier Jouet Champagne 4 x 20cl cluster pack, which is new to the US market, priced US$25 to US$30. ADDF said it expects to sign new wine business with Brasif in Brazil and border operators, which can benefit from the greater space they have available for wines. New wine presentations by ADDF are also going into major US airports such as Houston, New York JFK and others in the Caribbean and Mexico.
Ballantine’s Scotch Whisky, Sauza tequila, Malibu, Kahlua and to some extent Canadian Club and Courvoisier are the spirits brands which take centre stage for ADDF in the Americas region. Ballantine’s new premium collection, the 3 x 20cl 17 year old, 21 year old and Ballantine’s Limited is having its global launch now; whereas Ballantine’s Finest and Gold Seal are currently the more important products in Latin markets.
The Sauza brand, which is key for Mexico and many other Latin markets, is back up to full production following the agave shortage. ADDF said premium products such as the Sauza Hornitos pure agave tequila at US$32 are becoming more important. The slightly lower priced Sauza Hacienda golden tequila launched recently in Mexican domestic markets and duty free. Powerful growth for Sauza in Mexican domestic markets is continuing to push duty free sales.
Meanwhile Malibu, acquired from Diageo last year, has begun to grow and will especially drive ADDF in the Caribbean and the wider region. Around the other brands, a special Mayan edition of Kahlua wrapped in a special graphic bottle – an exclusive for Weitnauer Americas – is currently a big success. Tia Lusso has exceeded expectations for the Americas region with already a big uptake over the past two months in those US airports with European passenger traffic. Tia Lusso is also listed with many Caribbean operators, in Mexico and with Canadian border operators.
The company said the new duty free exclusive Founders Whisky, a new premium Canadian Club, also got a good reception. This is going on shelf this week with Canadian border operators priced at US$30. Courvoisier Exclusif VSOP Cognac in new 35cl packaging targeting the female market also grabbed buyer attention. Major brands have been continuing to progress well.
“Before the war we were seeing a really nice climb in January and February, though with Venezuela and Mexico still having some problems,” ADDF trade marketing manager for the Americas Jesse Pena told The Moodie Report. “But in the past two weeks we are already seeing a downturn at airports, much more than border stores.”
Enquiries to the ADDF Miami office should be directed to Jesse Pena at: jesse_pena@adsw.com
