URUGUAY. Panamanian company Top Brands International has acquired Neutral Duty Free, the largest duty free chain in Uruguay. Respected Americas travel retail title Travel Markets Insider (TMI)* reported the news last night, which has been confirmed by The Moodie Davitt Report.
With this acquisition, Top Brands will become one of the largest duty free players in the region, with 80 stores throughout Latin America and the Caribbean, Top Brands International President Danny Yohoros told TMI. No financial details were released.
Neutral, which celebrated its 30th anniversary in 2017, had been acquired by San Francisco-based private equity house JH Partners in 2011 in a move led by well-known industry figure Enrique Urioste. Urioste is set to remain on as CEO.
“This is a very strategic move for us,” said Yohoros, quoted by TMI. “We see tremendous potential ahead for the Neutral stores on the border. The economy in Brazil is getting better and with the synergies that will accrue with our existing companies, we will bring greater strength and value to the business.”
Yohoros noted that Top Brands has already been operating duty free shops on the border between Uruguay and Brazil, and has the experience needed to make the business go forward. The border business has been challenging in recent years due to the weakness of the Brazilian economy and its currency, the Real.
In 2015 Neutral opened its largest store yet, covering 4,000sq m in the Melancia mall, on the outskirts of Rivera. Neutral Duty Free Shop runs nine border stores in six cities: Acegua, Artigas, Bella Union, Chuy (two) Rivera (two), Rio Branco (two) on the Uruguay/Brazil land border and departures and arrivals airport duty free stores at Rosario in Santa Fe, Argentina.
Neutral Duty Free Shop is also the exclusive franchisee of Gap Inc. for Uruguay and Paraguay. The company operates standalone duty-paid stores in the Uruguayan local market as well as branded store-in-stores at different Neutral duty free locations on the border between Uruguay and Brazil.
*Note: Travel Markets Insider is a leading specialist travel retail publication dedicated to the Americas, with which The Moodie Davitt Report has a close, informal working relationship. Owner and Editor Lois Pasternak can be contacted on editor@travelmarketsinsider.net
