This article was initially published in the October issue of Global Drinks Intel magazine. For details on how to subscribe, click here.
The revival of international travel has boosted the demand for niche spirits with European
provenance in the region’s Global Travel Retail channel, writes Sandra Newman.
While core spirits categories such as whisky and gin occupy a high proportion of shelf space in Global Travel Retail outlets around the world, speciality niche spirits also have an important role to play in the channel’s offer. Aniseed-based spirits — such as raki, ouzo and pastis — bitters, aquavit, baijiu, brandy and fruit eaux-de-vie are significant segments in their own right and often appeal to travellers looking for local products to take home from their trip.
With destination merchandise a key driver of GTR purchasing for speciality spirits, the continued recovery of international tourism this year has driven a positive trend in recent months. In particular, strong growth in intra-regional travel in Europe, a key market for the likes of ouzo, raki, bitters, aquavit and fruit eaux-de-vie, has been welcomed by brand owners.
World Tourism Organization (UNWTO) data reveals a healthy rebound for international tourist numbers last year. Figures for January to May 2022 reached 46% of the levels in the same period of 2019. The recovery in global tourism has been led by Europe and the Americas. Four times as many international tourists visited European countries in the first five months of this year compared with the same period of 2021, with the growth helped by many countries removing all travel restrictions.
Ouzo puts in strong showing as travellers return to Greece
Ouzo of Plomari head of duty-free business Konstantinos Trivyzas says the recovery of tourism in Greece, particularly during the peak summer season, has boosted GTR demand for the brand. “Tourism is back and in July and August [2022] has surpassed 2019 [levels] by an average of 29% on the main islands and in Athens,” he says. “Mainly, the increase comes from the US, the UK, Germany, France and Israel.”
According to Trivyzas, Plomari has “benefited from increased sales sometimes exceeding traffic increases”. Liquor sales in duty free and travel retail have increased along with the tourism bounceback, he adds, with the ouzo category performing “extremely well” compared with 2019. Recently-released figures for July and August show overall growth of about 25% for ouzo versus the same period of 2019.
In its home market, Ouzo of Plomari is present at airports, border shops and port shops. Trivyzas says: “Travellers to the UK, the US, Germany, Israel, France and Italy are the main buyers of ouzo and the main locations [for sales] are Athens, Heraklion, Rhodes, Kos, Mykonos and Santorini.
“Local products are always very attractive to tourists leaving Greece and this is why ouzo, Greek wine and olive oil are their major preference.”
Outside Greece, Dubai International Airport is also a key location for Plomari because ouzo and other aniseed-based spirits are popular with travellers from the Middle East. Retailer Dubai Duty Free stocks a range of regional spirits in its liquor offer, including baijiu, ouzo and several brands of arak, including Lebanese brand Massaya. According to UNWTO, international tourist numbers to the Middle East grew by 157% in the first five months of this year compared with the same period in 2021, although traveller numbers were 54% below 2019 levels.
Tourist numbers in Asia-Pacific, however, have barely recovered. While more countries in the region have eased travel restrictions, international tourist numbers only reached 10% of 2019 levels in the first five months of last year, according to UNWTO. Baijiu remains badly affected by the lack of intra-regional travel due to Asian travellers accounting for a high percentage of sales. With China remaining largely closed to travel as the country continues to pursue a zero-COVID strategy, the lack of Chinese travellers has hit GTR sales of baijiu, as well as the core spirits categories.
One of the leading producers of speciality spirits, Pernod Ricard, alluded to the lack of Chinese travellers in its fiscal 2022 results presentation — they are a key purchasing group for Martell Cognac and its whisky brands, in particular. Pernod Ricard’s speciality brands, which include aniseed spirits Ricard, Pernod and Pastis 51, as well as bitters Ramazotti and Suze, are largely sold in European locations, however, and have benefited from the group’s “exceptionally strong recovery in Europe and the Americas” GTR markets. For the 12 months to the end of June, the group reported a 48% leap in total sales in the channel versus fiscal 2021.
As well as aniseed and bitters, a number of other speciality spirits have been boosted by the resurgence of tourism in Europe. These include eaux-de-vie made from locally-grown fruit, which represents an important segment in the likes of France, Switzerland, Germany and Austria. Producers include French-based Massenez, which has a long-established GTR presence, and Swiss brands such as Morand and Etter — both are among the best-selling kirsch brands at Switzerland’s Geneva Airport.
Another location showcasing fruit brandies is Austria’s Vienna International Airport. The airport’s GTR liquor concession is operated by Germany-based retailer & distributor Gebr Heinemann, which places a strong focus on destination merchandise in many of its stores. At Vienna Airport, Gebr Heinemann offers a broad selection of local spirits, with a focus on mid-to-high-end products, including a wide range of regional fruit brandies and schnapps, featuring brands such as Hauser, Reisetbauer, Freihof and Brandstatt.
Genever: The missing link between gin, vodka and whisky
Another niche spirit with a European focus is genever. At Amsterdam-based producer Lucas Bols, which leads the Dutch genever category with its main brands Bols and Bokma, regional director for liqueurs & spirits Juliette Menne explains that traveller purchasing habits differ from those of domestic consumers.
“The domestic genever category is very versatile and consists of several sub-categories with jonge jenever (non-aged, young genever) being the biggest category,” she says. “The dynamics in travel retail are slightly different, where tourists and travellers tend to shop for the traditional jars (Bols Zeer Oude Genever) or the aged genevers such as Bols Corenwyn. Also, the Bols Delftsblauwe Genever jar is a well-selling proposition for tourists seeking to take home some heritage from the Netherlands.”
Menne explains that “creating great cocktail experiences around the globe that reflect Lucas Bols’ “over four centuries of craftmanship” is very important to the company. With this in mind, it has developed Amsterdam-themed cocktails that can appeal to travellers. “Lucas Bols actively innovates within the genever segment and links genever to cocktails,” she says. “This resonates with cocktail drinkers, generally speaking a younger generation (28 to 40 years old) than the traditional domestic consumers.
“Of the five recently-launched Bols Cocktails ready-to-drink tubes, two contain cocktails with genever as the base spirit: the Red Light Negroni — a twist on the classic Negroni by adding … a link to Amsterdam’s most famous district – and the Very Old Fashioned — with Bols Barrel Aged Genever as the base instead of whisky. The Bols Cocktail tubes are listed with several airlines, such as KLM.”
Menne also highlights an interesting change in how genever is showcased in the liquor, tobacco and confectionery stores at Amsterdam Schiphol Airport, operated by Gebr Heinemann, that could offer possibilities for other speciality spirits to increase their GTR presence.
“The most recent development in travel retail is the repositioning of the genever category between vodka, gin and whisky; the category literally moved to a different location within stores at Amsterdam Schiphol Airport, which makes it easier for consumers to navigate.
“Genever is said to be the missing link between gin, vodka and whisky. The navigation starts from the well-known spirits category with grain distillates spirits (vodka) to spirits supplemented with juniper berry distillates (gin) to genever, with the addition of malt wine distillate, which results in a smooth and fresh flavour profile. Next to non-aged genevers is where you find aged genevers, adding richness and depth. This perfectly complements the link towards whisky.”
This article was initially published in the October issue of Global Drinks Intel magazine. For details on how to subscribe, click here.
