Close Menu

Wines and spirits H1 travel retail sales slide 2.5%

Generation Research figures presented at the TFWA World Exhibition Opening Conference show global travel retail wines and spirits sales fell -2.5% in the first half of 2015.

“Intense and lasting change” has impacted the global travel retail environment, the president of the TFWA has said

TFWA president Erik Juul-Mortensen presented the data as part of his State of the Industry address in Cannes this morning.

“We are indeed experiencing a period of intense and lasting change,” he said, describing the combined impact of geopolitical tensions, the continuing slowdown in China, Russia and Brazil, and currency volatility as a “watershed moment” for the industry

Global travel retail and duty free sales fell -0.2% in the first half of 2015, according to Generation.

Europe saw the biggest decline, with H1 sales falling -9.3% against 2014 (all reporting in US dollars). The Middle East was flat (+0.1%), with the rest of the world repoting sales increases (Amercas +1.9%, Asia Pacific +6.5%, Africa +9.0%).

In terms of category performance, confectionery and fine food was the only sector to post a greater decline that wine and spirits (-5.3%). Fashion and accessories was the star H1 performer at +3.5%.

The inflight channel continued to see sales fall (-6.7%), with cruise and ferry retail also contracting (4.0%). Airport retail was also pegged back in the first half of the year with sales declining -2.1%.

The only channel to see growth was the downtown/border and “other” segment, which grew +4.3%.

Juul-Mortensen said the falling sales comes against a backdrop of strong global passenger numbers, which increased 6.2% from January to July 2015 (ACI figures). Middle East posted the biggest gain (+10.6%), followed by Asia Pacific (+8.5%), Latin America (+6.7%), North America (+4.9%), Europe (4.9%) and Africa (+2.3%).

“When it comes to productviity per passenger, our peformnce is unimpressive,” said Juul-Mortensen, noting the industry’s “failure” to convert¬†the majority of passengers on to customers.

The TFWA World Exhibition & Conference continues until Friday 23 October.

It looks like you're in Asia, would you like to be redirected to the Drinks Business Asia edition?

Yes, take me to the Asia edition No