Unlock the full potential... L
ast year, the DF&TR tobacco segment generated sales of $7.5bn (Generation Research)
an increase of +3.5% versus 2016. In Asia alone, sales amounted to $2.8bn, rising +5.7% compared to 2016. Back in 2015, when sales in all
categories except fragrances and cosmetics fell compared to the previous year, tobacco sales declined just -4% (Generation Research) making it a relatively strong performer against other categories. In Asia, the picture was even
equally positive. “In a category that is flat globally at best we continue to grow incrementally at around 40%. “For us, this is not from specific
individual markets, but our continued philosophy of quality and innovation at an accessible price point. This is driving growth in most of our domestic and travel retail trade channels.”
rosier, with tobacco sales rising an impressive +8.5% making it the second fastest growing category behind fragrances and cosmetics. All other categories saw a downturn in sales. Whichever way you look
at it, tobacco remains a key driver of footfall. This month’s implementation of the Protocol to Eliminate Illicit Trade in Tobacco Products (see page 69) represents another significant
challenge
to DF&TR. But the category
has long been under scrutiny by the World Health Organisation (WHO) in particular and this has not stopped retailers and suppliers from achieving positive results individually and collectively.
Unlock the full potential...
Recruiting new consumers The brand’s travel retail portfolio is actually ‘very similar’ to the domestic equivalent in that overall volumes are up and growth is driven by the King and Corset brands. Stoyanova adds: “The new Corset
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Shell Pack continues to grow as the unique format is discovered by new consumers. For The King label, the recent launch of our Carbon Core range with charcoal filters has had instant traction in Asia and Eastern Europe.” Based on the initial success
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of the Corset Shell Pack range, the company will unveil the Shell Pack Double a Porter at the upcoming TFWA World Exhibition in
Cannes. This takes the form of a
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Exceptional growth Bulgarian cigarette company KT International, for example, appears to be going from strength to strength in DF&TR. Corporate Brand Manager Milena
Stoyanova tells TRBusiness: “Our growth in travel retail and domestic markets was exceptionally good in 2017 and 2018 is shaping up to be
SEPTEMBER 2018
double capsule product aimed at the Asian market. Stoyanova comments: “For Falcon, we will also be showcasing our new product and pack upgrade for the first time in Europe at the Cannes show. “For our main volume brand,
The King, we will be showcasing Carbon Core which was launched internationally for duty free in Singapore earlier this year.” Another company which appears
to be performing strongly in the channel is family-owned Pöschl
first quarter of 2018, keeping in mind our aim for further growth in terms of geographical expansion, finance and sales.” Rembowski, who cites Italy, Spain,
France, Switzerland and Germany as its most important European duty free markets concludes: “Our target is to double sales and destinations/ points of sale within the duty free business in the next three years.” «
“In a category that is flat globally at best we continue to grow incrementally at around 40%.”
Milena Stoyanova, Corporate Brand Manager, KT International
TRBUSINESS 65 This content is for subscribers only.
2013/2014 through its Pueblo brand (ryo and cigarettes), but is now present in more than 100 airports worldwide along with border shops, military stores, ferries and diplomatic outlets. Rafal Rembowski, Head of
International Sales tells TRBusiness: “In 2017, we doubled our sales compared to 2016. “We have also enjoyed a promising
Tobacco Group. The firm only entered DF&TR in
Above: A Pueblo activation area at Antalya Airport.
Left: KT International will showcase its new Corset double capsule product at the upcoming TFWA Cannes Exhibition.
TOBACCO UPDATE: OVERVIEW
Duty Free tobacco remains ‘key industry sector’ and footfall driver
The importance of tobacco in terms of the overall DF&TR category mix remains apparent with industry stakeholders continuing to report positive results in challenging times. Andrew Pentol reports.
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