We head to the regions for our latest preview of the year ahead: Here’s Remy Cointreau’s CEO for EMEA, Asia Pacific & Global Travel Retail, Ian McLernon, with his view on 2023.
Global Drinks Intel: What was your overriding takeaway from 2022?
EMEA, Asia Pacific & Global Travel Retail CEO Ian McLernon: 2022 was a year of two halves, During the first half, many markets started to lift their COVID restrictions, while the on-premise rebounded fast during the second half.
Global Travel Retail started to rebound in Europe from summertime where, clearly, two years of limited travel created pent-up consumer demand. Meanwhile, Chinese travellers couldn’t travel internationally throughout the year, which drove significant internal demand to Hainan.
The macro consumer trends in spirits, i.e., trading-up, have increased interest in provenance and brands’ commitments to sustainability. Meanwhile, increased experimentation with mixology at home and interest in crafted cocktails and gastronomic experiences in the on-premise continue to excite consumers.
Most importantly, we continued to see superb resiliency and commitment from our teams and valued business partners in what continues to be a volatile and unpredictable global macro environment.
GDI: Which industry developments surprised you the most last year?
IM: The rebound of GTR in Europe, which pre-pandemic had been stagnant for a decade versus a booming Asia-Pacific. The pent-up demand of the traveller has driven exceptional performances across the major airports and tourist destination cities across Europe.
The strong trade attendance and impressive visible brand investment at the TFWA exhibition in Cannes last year bodes well for the GTR channel, which will accelerate rapidly thanks to Chinese travellers in Q1 2023.
The temporary suspension of the 30% alcohol tax in Dubai from 1 January is a welcome boost to an already very dynamic marketplace, where the levels of investment in the food and beverage channel in recent years have been very impressive.
GDI: Which consumer group will be your main focus in 2023?
IM: We expect to see travel growing fast, driven by Chinese and South East Asian travellers to destinations such as Paris, London, Hong Kong, Macau, Dubai, Japan, the Philippines, South Korea and Singapore.
Revenge- (the pent-up demand of not being able to travel during the pandemic) and experience- (seeking authenticity and memorable experiences) led tourism will be phrases we’ll hear throughout the oncoming year, I’m sure.
Consumers will continue to seek the means to discover more about their favourite brands and how to make great cocktails at home with their friends, while the growth of e-commerce will continue as consumers seek more transparent information as well as ease of purchase. I expect to see e-commerce continue to grow in the emerging markets in South East Asia and India, as well as across Europe.
Distributors will also continue to invest in their digital B2B capabilities, which will help streamline the order and inventory management processes for retailers.
GDI: Which of the brands in your portfolio do you expect to grow the fastest this year?
IM: Longer term, we see opportunities to continue the positive momentum for our portfolio across all countries, although the pace of growth in 2023 will clearly vary, based on the macroeconomics and route-to-market of the country.
That said, we remain optimistic and believe we have great teams in place, targeted investment plans and committed trade partners to grow our brand portfolio together, sustainably.
GDI: What’s your biggest business worry for the months ahead?
IM: What our teams can’t control!
However, we have as a team performed well during the pandemic and I remain confident we can turn challenges into opportunities with the right mindset, focus on the long term and agile decisionmaking.
The ongoing war in Ukraine remains a concern, as does the volatile macroeconomic situation in the UK.
The continued opportunity/challenge for the growth of the spirits category is people, and the ability to recruit, retain and develop our teams to be passionate ambassadors for our brands. In the hospitality sector, recruitment and retention of staff remains a challenge in many countries and one that we’re committed to continue helping our trade partners where we can.
123We head to the regions for our latest preview of the year ahead: Here’s Remy Cointreau’s CEO for EMEA, Asia Pacific & Global Travel Retail, Ian McLernon, with his view on 2023.
The Top 50 spirits brands in Global Travel Retail in 2021 – Category Intel
