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World Cup has ‘exceptional’ duty free potential
The 2014 World Cup holds “exceptional opportunities” for white spirits brands and travel retail exclusives in Latin America, according to drinks industry bosses.
“Exceptional opportunities” have been forecast for travel retail and white spirits in Latin America this year
As this year’s World Cup edges closer, spirits brands are increasingly examining growth opportunities in the Americas.
In particular, the event – taking place in Brazil throughout June and July this year – has prompted Joe Arellano, vice president Latin America and duty free for Patrón spirits, to examine the affect double-increase in regional air travel could have on the company’s travel retail stable.
“Travel and tourism are key opportunities in 2014, with Brazil hosting the FIFA World Cup and in 2016 the Olympic Games,” he said.
“For a company like Patrón, which counts travel retail as its second biggest market behind the US, these are opportunities not to be missed.”
Arellano added that Patrón was therefore “busy planning activations in key airports” including Rio de Janeiro, São Paulo, and Iguazú Argentina as well as other airports outside of Brazil.
Meanwhile, Leigh Irvine, regional director Americas Bacardi GTR, notes that the World Cup could bode particularly well for the company’s white spirits portfolio.
“We see exceptional opportunities for our white spirits brands – Grey Goose, Bombay Sapphire and Bacardi – to collaborate closely with our domestic market in celebrating the uniquely Brazilian rhythm of the World Cup,” she said.
Latin America consumers themselves have been identified as catalysts for growth in this segment, as international ‘status’ brands are increasingly sought in the region.
A report by the IWSR released in October last year revealed that Brazilian consumers were turning away from local spirits cachaca and brandy – which were forecast to lose almost 4.7 million cases between them – in favour of whisky and vodka.
For a more in depth look at travel retail in the Americas, see the February issue of The Spirits Business.