LATIN AMERICA. Welcome to our rolling coverage of the 2024 ASUTIL Conference, which took place in Bogotá, Colombia on 19-20 June, with over 300 registered delegates.
The conference was managed by TFWA on behalf of ASUTIL, the South American duty-free association. See below for highlights of the event in words and images.
20 June
‘Thriving in uncertainty’ was the theme for a stirring closing keynote from Dr Roberto Canessa, celebrated author and cardiologist and famously one of the survivors of the Uruguayan plane that crashed high in the Chilean Andes in 1972.
He told the story of how he came to join the rugby team that took that trip, the events of the day, and his motivation to emerge alive once he realised many of his colleagues were dead or badly injured.
“We went from being a rugby team to a society of the snow. We looked around for our leaders. What we found is that leadership is hard to measure and it is unpredictable who will take it.”
Canessa reflected on the importance of laughing through the deepest adversity and also not to be an angel all the time, but to have a little devil too.
He was joined by Laura Surraco, his girlfriend at the time of the disaster (both were 19), and who later became his wife. She recounted movingly how she found out he was alive, sharing stories of their lives together and how they moved on since then.
Concluding, Canessa said: “We must realise that we are privileged, we have enough to live on and we should have more social commitment in this world of inequality.”
Before the closing keynote, ASUTIL Vice President Gustavo Fagundes (below) called for further support for ASUTIL and other global associations. “Become a member, participate and help us face the challenges together.”
Navigating the journey towards an eco-conscious travel retail sector was the topic for the final panel session of the day, with the discussion led by Avolta Chief Public Affairs and ESG Officer Camillo Rossotto.
Nestlé International Travel Retail Global Key Account Manager Tamara Spada spoke about the confectionery powerhouse’s ESG pillars built around environmental, social and economic sustainability. She reflected on how powerful leadership from the top of any organisation is when it comes to making a difference, on the work that is entailed in moving to paper packaging, for example, plus the importance of remaining authentic and credible in any actions that we take as a sector.
Bogotá El Dorado International Airport Sustainability Manager Alejandro Sanabria addressed the airport company’s regenerative strategies, its nurturing of human talent, its work to support the community, and its work to ensure the infrastructure is resilient, water-neutral, carbon-neutral and plastic-neutral.
In another key session on day two, senior representatives of three leading travel retailers in the region spoke candidly about the landscape, dynamics and future of the business.
Motta International Vice President Ignacio Lasa, Avolta Senior Vice President and Head of Cruise Division Gian Botteri and Lagardère Travel Retail Peru CEO Cyril Letocart joined The Moodie Davitt Report President Dermot Davitt on stage to talk about 2024 performance, project development and investment, and consumer spending power and trends.
They also addressed challenges including labelling and regulation, the costs of doing business, logistics (notably in cruise) and varying levels of consumer confidence among key nationalities today.
Latin America’s fast-changing economic landscape was the subject of the first conference session of the day following the morning’s networking.
From inflation to political uncertainties, renowned economist Carlos Melconian highlighted how doing business across the region remains challenging, as he updated delegates on navigating the complexities and opportunities in the market.
19 June
Later in the afternoon, Women in Travel Retail+ (WiTR+) hosted a networking event at the ASUTIL Conference for the first time – part of the afternoon networking session at the Hilton Corferias event venue in Bogotá.
The event, designed for female delegates to catch up with colleagues and make new contacts, attracted around 30 WiTR+ members and non-members.
WiTR+ Chair and Duty Free World Council President Sarah Branquinho talked about the history of the organisation, its expansion and the annual charity projects that it supports. She also spoke about a new mentorship programme, encouraging others to lend their support.
To close the morning, a panel of senior beauty executives – Shiseido General Manager of Travel Retail Americas Pablo Cobian, Coty Vice President of Travel Retail Diego Artola and Essence Corp Travel Retail Director Yennifer Abreu – addressed the category’s future in regional travel retail, with moderation by m1nd-set CEO and Founder Peter Mohn.
Yennifer Abreu highlighted how sustainability is at the heart of motivating the new informed consumer, why communicating on diversity & inclusion is vital, and how memorable, interactive retail experiences resonate with Gen Z.
Diego Artola homed in on how brands must leverage relevant social media platforms using Kylie Cosmetics as an example; use sales staff as opinion leaders; create entertainment in-store and show the impact of sustainable actions.
Pablo Cobian outlined how consumers today see beauty and wellness as intertwined. He too highlighted the importance of communicating the industry’s sustainability credentials, adding that “we need to challenge ourselves and each other to do better”.
He said: “We also need to show that we are authentic which is one of the keys for credibility with Gen Z.”
Earlier, addressing the travel and travel retail experience in an energetic presentation, Avolta Chief Commercial Officer Vijay Talwar said that the industry was “ripe for transformation”. He spoke tellingly about how globalisation and technology has changed the consumer landscape, adding that travel environments need to change dramatically to engage Gen Z shoppers, whose buyer share in travel retail has doubled (4% to 8%) in recent years.
Crucially, he identified Asia, Africa and Latin America as the great growth markets for youth of the future, and therefore key for travel. For the Americas region, Miami and key gateways in Brazil stand out as representing vast airport retail opportunities. For example, Brazil air travel is forecast to grow from 94 million to 150 million over the next decade.
Fresh, surprising in-store experiences will be a big part of the future, Talwar noted, highlighting the development of the Hudson x Toblerone collaborative concept as one example, and entertainment as a vital element in retail.
“We are now seeing airports putting out RFPs for hybrid concepts,” he said. “They realise that people want to order their coffee while picking up their essentials. This is where we are heading in future.”
Talwar also homed in on the company’s digitalisation drive to guide and assist, reward, allow consumers to dine and shop, all to ensure a seamless traveller experience.
In the same session, LifeMiles Chief Commercial Officer Valeria Yglesias talked about the Avianca loyalty programme’s embrace of new technologies and strategies to build stronger relationships.
Her central point was the imperative to “connect emotionally with our customers”, ensuring interactions with them are personalised, simple, transparent and offer multiple options to collect points.
In a breezy, music-themed opening keynote, Guayaquil Symphony Orchestra Artistic Director and Conductor Íñigo Pirfano spoke about creating collaborative environments and shared his insights on leadership, motivation, prudent decision-making and overcoming crisis.
Also on the first morning, Duty Free World Council President Sarah Branquinho provided an update on efforts to safeguard the industry in the region and beyond.
She highlighted the success stories in the region including the existence of free zones, the expansion of the South American border store network and others.
Branquinho homed in on the challenge of the World Health Organization’s Protocol to Eliminate Illicit Trade in Tobacco Products under its Framework Convention on Tobacco Control. The Protocol requires Parties to take comprehensive measures to prevent and counter the involvement of the tobacco industry in illicit trade. A key concern for the duty-free & travel retail sector is Article 13.2, which seeks to link illicit trade in tobacco products to duty-free sales.
WHO is undertaking what it terms ‘evidence-based research’ to “ascertain the extent of illicit trade in tobacco products related to duty-free sales”.
On behalf of the industry, Branquinho rejected the unsubstantiated allegations that travel retail is a major contributor to illicit trade, highlighting that its supply chain is one of the most secure and transparent in the world.
She said: “We must continue to protect ourselves against this threat and the unfair accusations about the relationship between the duty-free market and tobacco sales.”
Branquinho noted the strong commitment among companies to help defend travel retail and that have signed up to speak directly to the relevant authorities in each market – and called for further support from the industry.
ASUTIL Secretary General Carlos Loaiza welcomed delegates and paid tribute to the board members and staff that had made the event a success over the years.
He said that sales in the region rose to new highs in 2023, updated delegates on advocacy efforts and revealed that ASUTIL is launching its own ESG Task Force – to be discussed in a session later in the event.
Loaiza also spoke about how ASUTIL had lent support to the victims of the Rio Grande del Sur flooding and landslide tragedy in southern Brazil, saying it was a further example of how the industry can make a positive difference to people’s lives.
ASUTIL President (Avolta LATAM & Caribbean President and CEO) Enrique Urioste opened conference proceedings with a view of the industry landscape. He said: “I am an optimist but a rational optimist and that is based on the data. Look at the forecasts for passenger numbers. Those passengers have money in their pockets but we must also encourage them to enter our stores and spend more with us.”
He noted in particular the strong evolution of traveller numbers in Latin America & the Caribbean and growth in the key categories, notably beauty, wines & spirits and confectionery.
18 June
The ASUTIL Conference kicked off with a memorable Welcome Evening courtesy of Motta Internacional and Attenza Duty Free.
ASUTIL President (Avolta LATAM & Caribbean President and CEO) Enrique Urioste hailed the strong support for the event with over 300 delegates registered and a +35% uplift on sponsors.
“This helps to bring the industry together. I believe firmly in the concept of the Trinity started by my friend Martin Moodie many years ago, with brands, operators and airports making this industry possible.”
A highlight of the evening was a tribute to previous ASUTIL Secretary General José Luis Donagaray, who retired last year after 23 years in office.
Urioste said: “José Luis is the architect responsible for what ASUTIL is today. He is a decision maker and made many things possible.
“He brought us together at these events, he helped us achieve higher quotas and allowances, and all of us do better today because of what he has done. It has been a fantastic journey and we thank you on behalf of this big family of ASUTIL.”
Urioste, ASUTIL Secretary General Carlos Loaiza-Keel and board members Marcelo Montico and Gustavo Fagundes presented Donagaray with a Tag Heuer watch plus a commemorative plate to mark his time at ASUTIL..
Donagaray thanked all the past presidents and board members of ASUTIL, saying it was a pleasure to work with them, and reflected on the resilience of ASUTIL members in overcoming many challenges.
He said: “Only by working together can we succeed. I pay tribute to the work of the Duty Free World Council and the things we have achieved especially through the COVID period.
“One final message: many here are not yet members of ASUTIL. The associations need members and they need support. When we meet governments it’s very important to say that we represent everyone in the industry.” ✈
