NEWS ROUND-UP Plain tobacco packs threaten UK DF&TR spend per head
Major changes to UK tobacco display law came into force on 20 May under the Tobacco and Related Products Regulations 2016 legislation, which could potentially impact spend-per-head levels in UK duty free shops. These new regulations now require all
cigarette brands in the UK – including those offered at duty free shops – to be sold in standard non-branded dark green packaging. The EU’s Tobacco Products Directive
(TPD) also bans the sale of cigarettes in packets of ten, while those smokers who prefer menthol cigarettes now have until 2020 before these are banned altogether.
At the same time, roll-your-own tobacco packs must now be sold in minimum size packs of 30 grams. From the 20 May transitional deadline, all
retailers in the UK are now legally obliged to withdraw all cigarettes in stock that still bear branded packaging from sale, while also removing any packs offering quantities of 10, 19 or any other ‘non 20’ quantity in line with the new legislation. At the same time, health warnings on
the packs themselves have been increased in size, along with warning images which must cover 65% of the front and back sides of cigarette packs, as well as roll-your-own tobacco packaging. Domestic and duty free retailers are still
legally obliged to keep tobacco products covered at the point of sale and there are now technically three-month custodial
sentences and/or financial penalties which can be imposed on those found to be breaking the law.
Lotte draws 100,000 to 25th Duty Free Festival in Seoul
Paradies Lagardère confirms six shops at Raleigh-Durham
The Paradies Lagardère travel retail and F&B operation has formally confirmed it has been awarded six specialty retail and travel essential outlets at Raleigh– Durham International Airport (RDU) in North America. The company says it won the business
with bids that reflected ‘an impressive selection of leading national, regional and local brands’, including TripAdvisor, WRAL Travel Store, Swarovski and CORSA Collections – plus No Boundaries and InMotion Entertainment. Commenting on the new win, Gregg
Paradies, President and CEO, Paradies Lagardère said: “We are thrilled and very appreciative of this opportunity to continue expanding our strong relationship with Raleigh–Durham International Airport and deliver these popular and highly- recognised national brands in Terminal 2.”
Lotte Duty Free attracted over 100,000 people to its 25th Lotte Duty Free Family Festival’ which the company held on 19-20 May at the Seoul Jamsil Sports complex in the main Olympic stadium. The 25th festival coincides with the 50th
anniversary year of the Lotte Group and the reopening of the Lotte Duty Free World Tower store (earlier this year). Concert performers included South
Korean girl group Mamamoo as well as popular singer and musician, Kim Gun-mo. Lotte claims that the Lotte Duty-Free Shop Family Festival, is Korea’s leading Hallyu marketing event. The concert is timely, as Korea’s tourism
industry struggles to overcome the impact of China’s ban on group tours to the country. As reported by TRBusiness, tax free sales in Korea remained in decline in March owing to ongoing political tensions with China surrounding the stationing of the US-supplied Terminal High Altitude Area Defense (THAAD) system in South Korea. According to data from tax refund
specialist Global Blue, Korean tax free sales dropped -32% during March. Despite the decline in duty free and tax free sales and the impact to the Korean tourist industry overall, Lotte attracted 1,000 ‘VIP customers’ from Southeast Asia, Japan and China to the concert in May. Lotte Duty Free CEO, Jang Seon-wook,
commented: “We held the Lotte Duty Free Family Festival this year in order to continue promoting the Korean Wave that can become a great asset to Korea tourism to revitalise the domestic tourism industry. I will continue to pursue projects that can contribute to revitalisation.”
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