TOBACCO REPORT: SHISHA


shisha players and listings of additional top-selling flavours.


Gifting proposition Tahir, who anticipates the shisha segment display double-digit growth in 2019, says the segment grew by 120% in retail sales value in 2018 compared to 2017. “Shisha sales have evolved


positively over the last four to five years”, acknowledges Tahir, “and we have seen a steady increase in sales. This is largely based on demand for self-consumption and gift purchases from the millennial group of passengers.” Taking into account the steady


additional sales being generated year-on-year, DDF has


increased


the space allocated to shisha. “The shisha category currently occupies 2% of space given to the cigarettes, tobacco and cigars category. “We currently have five shisha


brands available in Dubai Duty Free which are Al Fakher, Nakhla, Mazaya, Afzal and Malaki. The top-selling brands


are Al Fakher


and Nakhla, while the best-selling flavours are double apple and mint.” With the surge in shisha sales,


DDF has slightly tweaked its approach to the category. Its focus is


to list flavours that resonate


with customers’ demands, run promotions on products with travel shishas which are unique and easy to carry, and emphasise the gifting element to passengers. “These are among the key


elements which are constantly being discussed with our supply partners,” Tahir explains. Shisha products certainly make


unique gifts for passengers across various


purchasing spectrums


and are looked upon as a souvenir gifting idea. DDF welcomes many international transit passengers who are more intrigued by the various Middle East flavours than the modern ones available in the rest of the world but tries to cater to all tastes. “At Dubai Duty Free, we


continue to focus positively on the category with increased space and improvement in flavours as per customer demands,” says Tahir. One brand looking to capitalise


FEBRUARY 2019


on this increased space is Al Fakher. The UAE-based shisha and hookah tobacco


company views travel


retail as an integral channel for two reasons. “The first, is to help build on our


category leadership on a global scale”, Ziad Jabre, Al Fakher, Head of Global Travel Retail tells TRBusiness, “and the other is to ensure consumers find their brand of choice wherever their adventures might take them.” Travel retail is a sales and marketing


channel, according to Jabre. “Moving forward, we will continue


to grow our global distribution by continuously fortifying our current core travel retail market in the MENA region, where we are listed in most airports, key seaports and border shops. “We will also do so by introducing


our products in new markets.” Widely


distributed in local


markets, Al Fakher’s GTR department has used its knowledge and expertise to determine and prioritise where, how and when to move into new DF&TR markets. “In 2018, the focus was primarily


on solidifying the channel in the MENA region, laying the foundation and setting a course of action for our global expansion,” says Jabre. For Jordanian shisha company


Mazaya, which registered high year-on-year DF&TR sales growth of +30%-50% between 2017 and 2018, having strong distribution in the Middle East does not mean shisha is only a trend in Middle Eastern countries.


New flavours inspired by consumers’ tastes and preferences were introduced by Al Fakher at last year's MEADFA event.


“Moving forward, we will continue to grow our global distribution by continuously fortifying our current core travel retail market in the MENA region, where we are listed in most airports, key seaports and border shops.”


Ziad Jabre,


Head of Global Travel Retail, Al Fakher


Rawan Elayyan, Brand Manager,


Mazaya tells TRBusiness: “Shisha may have been in those countries for a long time, making it a normal part of society, but with the dramatic shisha growth we are witnessing, shisha is becoming a worldwide phenomenon.


This opens up


potential opportunities for us.” Mazaya’s plan to establish a strong distribution base outside the Middle


A Mazaya POS at Dubai Duty Free. TRBUSINESS 37

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