The cruise retail channel has rapidly become the darling of the wider global travel retail industry. Blessed by a rapidly growing pool of affluent captive customers – in 2024, a record-breaking 34.6m people took a cruise, a 9% year-on-year increase – the cruise business is also going upmarket.
Since 2010, according to the latest data from the Cruise Lines International Association, the luxury cruise fleet has more than tripled. By 2028, around 1.5m consumers per year are expected to take a luxury cruise.
Such stats are music to the ears of premium-plus alcohol brands, but prospering in this niche sector takes a specialised and experienced retail partner. Step forward UK-based Harding+. Established in 1930, the company is one of the world’s largest cruise retailers, with in the region of 300 onboard shops spanning 85 ships and 14 blue-chip cruise partners, including Carnival, Cunard, P&O Cruises (above) and Viking.
The retailer has been undergoing rapid expansion and was No.2 on the 2024 Interpath Retail Index, which ranks UK retailers based on a two-year average of their CAGR. In December 2022, Harding+’s sales for the month hit GBP189.9m (US$257.1m), marking a dynamic year-on-year growth rate of 145.66%.
Cruise versus airport retailing
At the heart of the retailer’s success is a sharp focus on customer insight, innovation, differentiated brand partnerships and a recent pivot towards AI technology. Stuart Brown, Harding+ head of commercial – liquor, tobacco & confectionery, is keen to stress that cruise retail is fundamentally different from its airport or land-based counterparts.
“The key differences in managing spirits for cruise retail versus airport or land-based duty free lie in repeat visits and dwell time,” he observes. “Industry data indicates that the average cruise guest visits onboard shops 3.3 times during a seven-day cruise, so we benefit from considerably longer dwell times compared to the typically hurried, functional nature of airport shopping.”
Such an extended engagement window, Brown argues, allows Harding+’s highly trained staff to connect more meaningfully with guests, creating genuine rapport and providing tailored guidance. These retailer-customer interactions support deeper brand education and product exploration, often leading to more thoughtful purchases, repeat sales and opportunities for customers to trade up.
Guests want more than duty free
A recent survey of 30,000 onboard guests found that prospective cruise customers crave both value and exclusivity, especially those who are new to the cruise holiday, one of Harding+’s fastest-growing segments.
“They’re drawn to the strong value proposition that duty-free pricing naturally offers, but they’re also excited by the opportunity to purchase something they can’t find on land, whether that’s a cruise- or travel retail-exclusive expression,” says Taylor Cowell, Harding+ buyer – liquor, tobacco & technology.
To meet this demand, Harding+ has elevated its exclusive offerings. A recent standout example is the Jack Daniel’s Single Barrel programme with Carnival Cruise Line (above), which was announced in May this year. Co-developed with brand owner Brown-Forman, the bespoke collection includes bottles of Jack Daniel’s engraved with the Carnival logo.
“We were really pleased with both the commercial performance and guest engagement from our Jack Daniel’s Single Barrel programme in partnership with Brown-Forman,” says Cowell. “It aligned perfectly with one of our core strategic pillars, offering exclusive products that aren’t available domestically, and the response onboard reflected that.”
Cowell reveals that such high-level beverage alcohol activations often lead to sales increases of over 100%, but there are broader benefits for the promoted brand too. “With a captive audience and multiple store visits being the norm on a cruise, there’s a huge opportunity to engage guests meaningfully,” she says.
“Tastings, education and brand ambassador moments all help turn interest into purchase.”
One size doesn’t fit all
Harding+ takes care to adjust its onboard alcohol assortment to different cruise itineraries: what works in the Caribbean may not translate to Scandinavia.
“Just 11% of our total assortment is aligned globally, highlighting how tailored and locally relevant our approach truly is,” reveals Cowell. “We place strategic emphasis on itinerary-specific ranges that add a genuine sense of place to the onboard experience.”
Reflecting wider international trends, tequila, for instance, is booming, up 42% year-on-year in Europe and a staggering 51% in Australia. In the US, bourbon remains dominant with an 18% year-on-year increase. Meanwhile, sales of gin in Europe and brandy in the US and Australia are showing signs of softening.
In response, Harding+ tailors its ranges to each ship and each itinerary. Unsurprisingly, Caribbean routes lean heavily into rum, with P&O’s Arvia and Britannia ships hosting Bacardí Caribbean Spiced activations last year.
In contrast, sailings to Norway now feature Reyka, a William Grant & Sons-owned vodka from Iceland.
Creating lasting memories
Guest interactions don’t stop at the shelf. Harding+ is leading the way with immersive brand activations that blur the line between retail and entertainment. From tastings and cocktail masterclasses to personalised bottle label printing and engraving, the aim is to create lasting memories alongside high-impact sales.
The company’s research shows that brand partnerships where experiential elements play a role lead to a 35% uplift in sales. Moreover, 87% of guests revealed that their shipboard purchases were influenced by brand theatre.
Examples of such activations include a collaboration with English craft distillery Salcombe and P&O Cruises, where an exclusive expression, Marabelle Gin, is distilled onboard P&O Cruises’ Iona.
“This unique collaboration links the guest experience of enjoying a G&T at the bar and participating in cruise line-organised cocktail masterclasses to purchasing a bottle as a special keepsake that will remind them of their cruise,” says Cowell.
Other recent activations in Europe featured Hendrick’s Sunspell (above), a citrus-flavoured line extension of the William Grant-owned gin, a pioneering onboard collaboration between Pernod Ricard and Walker’s Shortbread, and a first-time activation with Campari Group’s flagship aperitif, Aperol.
“In the US, we’ve partnered with Skrewball [peanut butter-flavoured whiskey], Johnnie Walker Black Ruby, Grey Goose Altius, a new [vodka] launch from Bacardí, and Glenmorangie’s collaboration with Harrison Ford,” adds Cowell. Meanwhile, in Australia, Jameson, Skrewball, Malibu and Absolut have been chosen for high-profile promotions.
The profile of the average cruiser is changing. The age has dropped to 46, and 73% of trips now involve at least two generations. As a result, Harding+ is exploring more inclusive offerings, from family-oriented activations to gifting-friendly premium spirits.
However, alcohol-free and low-ABV spirits haven’t yet taken off onboard. “We’ve explored and trialled these segments, but they haven’t gained significant traction,” Cowell admits. The value-driven nature of duty free likely skews preferences toward full-strength, high-value spirits for now, but Harding+ remains vigilant for shifts in consumer taste.
AI a back-office gamechanger
Behind the scenes, Harding+ is revolutionising how it manages supply and forecasting, a key aspect of effective cruise retail where ships have to be restocked in very short timeframes. The retailer says its 2024 roll-out of an AI-driven replenishment system has slashed out-of-stocks by 60%.
The technology accounts for voyage duration, product grading, delivery rhythms and real-time sales data to “dynamically optimise” inventory, according to the company.
This innovation isn’t just about keeping shelves full. “The integration of real-time data enables us to be highly agile, adjusting our product mix, optimising promotional activity and adapting pricing dynamically using our cutting-edge digital shelf-pricing technology,” says Brown.
“Maintaining data integrity throughout the entire planning process is critical, from anticipating guest preferences before the cruise to continuously refining inventory decisions during the voyage based on live insights.”
The new system has also resulted in another benefit: helping Harding+ cut 5.7m “pallet kilometres”, supporting the retailer’s growing commitment to sustainable operations by reducing emissions through smarter logistics.
What it takes to succeed onboard
With cruising expected to grow in passenger numbers by 12% year-on-year, Harding+ is gearing up for a strong second half of 2025.
“Building on the success of the Jack Daniel’s Single Barrel Programme with Carnival Cruise Line,” says Cowell, “we plan to expand the initiative globally, offering guests even more exclusive and premium experiences.
“We’re also elevating our tasting and education programmes by fostering deeper collaborations with a wider range of brands, creating richer, more immersive experiences for more of our guests.”
She adds that Harding+ is keen to support niche and craft brands eager to break into the fast-growing cruise channel, but they must excel in three areas to succeed over the long term:
- Have the ability to offer unique value through storytelling and create immersive activations and experiences
- Appeal to a broad range of customers in different regions, and
- Be able to scale up reliably to supply a truly global business.
“Brands that can demonstrate strength in these areas are best positioned to capture our attention and partnership,” Cowell adds.
