Analysis: Spirits in global travel retail

30th January, 2018 by admin


The strength of the liqueurs segment in DF and TR principally lies with a small number of heavyweight players, such as Baileys from Diageo and Cointreau from Rémy Cointreau. While these brands are relatively active, the general focus on trendier spirits segments such as whisky and gin means that liqueurs have not kept pace.

Liqueurs’ value share of wine and spirits in DF and TR is about 4.4%. This represents one of the highest shares – outranked only by Scotch, Cognac and vodka among spirits categories – but it has slipped back from about 6.4% a decade ago.

One of the issues is that the category is highly fragmented. Nevertheless, Diageo committed to it in 2016 with the launch of a DF- and TR­-exclusive line of Baileys called XC (exceptional cream) combining cream, Cognac and ‘fine spirit’. Cointreau also reported a 52% uplift in sales in June 2017 (compared with the same period in 2016) at Frankfurt Airport following a new activation, before rolling it out to Dubai, London Heathrow and Alicante airports.

Lyndea Dew, Rémy Cointreau’s GTR marketing and business development director, says the activation, which used orange trees, green walls and a Cointreau cocktail van, “targeted millennial travellers with a more meaningful and deeper connection to our brand”.

According to William Grant & Sons, its classic whisky liqueur, Drambuie, is also showing renewed momentum after the introduction of a new bottle and ‘serve activity’ last summer, which also targeted younger consumers. Sales for the brand are up by 30% in European DF and TR.

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