- Record tourist arrivals in Europe – 747m in 2024 – are boosting sales of regional spirits
- In-airport tastings and shop-in-shops aim to target demand for ‘memorable experiences’
- Consumers are trading up for premium expressions with strong heritage stories
- There is a focus on travel retail exclusives and educational activations in areas of slower growth
The consumer appetite for authentic gifts and souvenirs is giving regional spirits a new lease of life in global travel retail as international visitors flock to Europe.
Record tourist arrivals in Europe recently are boosting the sales of regional spirits in the global travel retail channel as holidaymakers seek local gifts and souvenirs.
Last year, according to the UN’s World Tourism Barometer, Europe welcomed a staggering 747m international travellers. This figure far surpasses any other global region, with more than 70% of visitors flocking to Southern and Western Europe, resulting in strained local resources and even protests over ‘overtourism’.
Countries on the Mediterranean are at the forefront: In 2024, Olympics host France, the biggest international destination, received 100m international visitors, while second-ranked Spain had almost 94m – nearly double its own population.
The tourism surge has continued apace into this year, with international arrivals across the continent rising 3.3% in Q2 compared with the same period last year, according to the European Travel Commission (ETC).
At the same time, rising costs are evident across all areas of the travel industry, yet the ETC forecasts tourism spending in Europe will be 13% higher in 2025 than in 2024.
This is good news for regional spirits producers, especially in GTR, where brands are grasping the opportunity to double down on storytelling, exclusivity and immersive activations to target shoppers searching for authentic gifts.
Ouzo thrives in boom
Ouzo, Greece’s national spirit, is a prime example of this post-pandemic trend. Last year, the country welcomed over 40.7m visitors – a record figure that looks set to be broken again in 2025. In the first half of 2024, Greece’s airports handled 10.3m travellers, a 5.7% year-on-year increase.
“This strong momentum has had a direct and positive impact on duty-free sales of Ouzo of Plomari,” says Eleni Papadopoulou, exports brand manager at Lesvos-based Plomari Distillery–Isidoros Arvanitis, the country’s biggest ouzo producer. “Our brand is fully listed across all Greek airports and proudly holds the largest share of the entire spirits category, cementing its position as the undisputed leader in ouzo.”
The GTR channel, Papadopoulou adds, is not just a commercial channel but a “strategic image-building” platform that complements Plomari’s export ambitions. The brand owner invests in a mix of promotional tactics, from traditional price-offs to brand ambassador-led education campaigns that spotlight the spirit’s unique attributes, such as its “secret recipe”, which uses around 15 herbs and seeds from the Greek island of Lesvos.
Custom-designed displays, channel-exclusive packaging and an annual limited-edition bottle further enhance the brand’s giftability and visibility. This year’s limited release (above) pays tribute to the Aegean’s iconic wooden fishing boats, known as kaikia, with proceeds supporting the restoration of an historic vessel, Sunray, now on display at The World of Ouzo Museum in Plomari.
Papadopoulou notes that Plomari has been growing strongly at duty-free border shops, with sales in this channel up 40% this year. The company’s premium offering, the triple-distilled Plomari Adolo, has performed particularly well in this setting, she notes. The brand’s global presence also continues to grow, with listings in Türkiye, Israel, Dubai and German airports through its partnership with GTR operator Gebr Heinemann.
A record year for Spanish brandy
Spain’s position as the world’s second most visited country is fuelling strong momentum for Spanish brandy in global travel retail, according to Familia Torres’ GTR director Bruno Teixeira. He says sales of the company’s brandies are thriving at home and abroad.
“Within airport duty free, we’ve achieved consistent growth in major international hubs, especially in Europe and Asia,” Teixeira reveals. “We are experiencing strong demand for flagship products such as Torres 10 and Torres 15, appealing to both new and returning travellers. We’ve also noted resilience in premium brandy segments, with higher-value SKUs outperforming expectations as travellers seek quality and authenticity.”
Indeed, he adds, travellers are becoming more demanding, seeking exclusive prices and promotions involving special experiences. Consequently, Torres has introduced high-impact activations at major Spanish airports during the peak summer travel period (April–October) to increase visibility and build brand awareness.
“We also have immersive tasting experiences at Barcelona Airport, where we have a personalised shop-in-shop, allowing travellers to sample the range and learn about the brand’s heritage,” he says. “Limited editions and gift packaging are also part of our strategy at select European airports, boosting both visibility and conversion rates.”
Teixeira also reveals that in recent years, Torres has introduced channel-exclusive expressions in select locations. “We recently introduced two SKUs in our barrel series, Torres Brandy Double Barrel and Torres Brandy Smoked Barrel, both in 1-litre formats,” he says. “We’ve also developed innovative packaging formats, including premium gift boxes and travel-sized editions tailored for the channel.”
These exclusive offerings have resonated with collectors and gift-oriented shoppers, according to Teixeira, and sales have exceeded the company’s initial expectations, suggesting a strong ongoing demand for GTR-only expressions.
Grappa challenges expectations
Like Spain, Italy enjoyed a record-breaking 2024, attracting 65m international travellers, with more visitors coming from developing economies such as India and China. This year is set to be another huge one, with international visitor spending forecast to hit an all-time high of EUR60.4bn (US$70.3bn) up from EUR55.2bn in 2024, according to the World Travel & Tourism Council.
With its premium positioning and strong Italian identity, grappa has undoubtedly benefited from this upswell in tourism. Duty-free sales of Castagner Grappa (above), for example, have grown by 40% this year, according to Fabrizio Canal, CEO of the brand’s exclusive GTR distributor, Food Accademia.
Canal says tastings prove the most impactful promotional activity to drive sales within the channel, with consumers surprised at the smoothness and complexity of the spirit and dispelling any preconceived ideas about grappa being “harsh”.
He argues: “Highlighting the versatility of grappa in mixology also resonates well with younger consumers. Gifting activations, such as premium packaging or limited editions, also drive strong sales, particularly in peak seasons.”
Likewise, Bottega has seen an uptick in grappa sales. The company’s offerings are sold in major Italian airports and at its branded prosecco bars in Rome and Venice. Owner & MD Sandro Bottega observes that GTR preferences vary by region and traveller profile, noting that aged grappas, such as Bottega Fragranze, often appeal to affluent travellers familiar with whisky or cognac, while fragrant single-variety grappas, like Alexander Prosecco, are preferred by younger LDA consumers, especially in Asia.
Veneto-based Poli Distillerie continues to see steady growth in the Italian GTR channel, buoyed by its artisanal approach and flagship Sarpa expression (below), which recently won a gold medal at the 2025 International Spirits Challenge in London. Yet the channel is not without its challenges, according to owner Jacopo Poli.
“We have faced challenges related to rising operating costs and growing competition in the travel retail sector,” he concedes. “Our ability to maintain high-quality standards and to innovate in product presentation has been crucial in overcoming these difficulties.”
Aquavit maker Anora steps up focus on Scandi airports
In contrast to Greece and Spain’s buoyant travel sectors, Scandinavia’s travel retail market is experiencing mixed fortunes. Despite rising tourist numbers to the wider region, key ferry routes, particularly between Sweden and Finland, have suffered from a decline in Russian passengers and the ongoing impact of economic pressures.
The ferry sector has traditionally played an outsize role in the region’s travel retail channel. According to figures from the European Travel Retail Confederation, sales onboard Nordic and Baltic ferries last year dipped by more than 5% to EUR686.4m, still nearly 25% below pre-pandemic levels.
“It’s true that we’ve observed a decline in passenger numbers and a lower average basket value in the ferry and cruise channel at the beginning of this year [2025],” says Saransh Verma, marketing manager GTR at Anora, the Helsinki-based spirits group and the owner of aquavit brands including Norway’s Linie, Denmark’s Aalborg and Sweden’s O.P. Anderson.
Verma reveals Anora has stepped up its marketing activity at the region’s airports. “Notably,” he says, “we’ve introduced travel retail-exclusive aquavits specifically for this channel. Airports are not only important for driving sales, but also serve as a key platform to introduce the aquavit category to a broader, more international audience.”
One such channel exclusive is Opland Smoky Finish, a Norwegian aquavit with a bold smoky flavour, matured for a minimum of three years in ex-oloroso sherry casks that recently won two gold medals in the Moodie Davitt Travel Retail Exclusive Awards. Bottled at 41.5% ABV in a 50cl bottle format, the expression is on sale at Oslo Airport for NOK419 (US$41).
In a region where domestic regulations prevent promotional sampling activities in many markets, travel retail’s importance in allowing liquid-to-lips activations cannot be overstated. “We’ve been actively leveraging our ‘World of Aquavit’ platform, which showcases our most iconic aquavits through tasting bars at selected ferry terminals and airports,” says Verma.
“We ran a two-month activation at Copenhagen Airport, which featured tastings, simple cocktails and clear brand messaging designed to engage travellers and introduce them to the rich heritage of aquavit in an accessible way, which was a great success.”
Vana Tallinn shows resilience onboard Baltic ferries
The travel retail environment in the Baltic states remains challenging. International arrivals in the region have risen this year, but numbers are yet to return to pre-pandemic levels. In the first six months of this year, Latvia saw a sizeable increase in visitors (+16.3%), but numbers remained below 2019 levels for the same period (-11.9%). It was a similar story in Lithuania (+14.7% for H1 2025, -5.2% on 2019) and Estonia (+ 6.2% vs -11.2%).
Gloria Hallaste, marketing manager at Estonian spirits company Liviko, the producer of regional herbal liqueur Vana Tallinn, agrees that trading conditions have been tough. “It’s been a challenging but steady year for Vana Tallinn in duty free,” she notes. “The brand continues to perform well in its core Baltic and Scandinavian markets, but external factors have made an impact, notably the ongoing war in Ukraine, shifting travel routes and increased price sensitivity due to inflation.”
Since the pandemic, Hallaste argues, travellers have become more choosy and price-conscious, but local authentic products like Liviko’s rum-and-spice liqueur, Vana Tallinn, remain popular. “Consumers are looking for authenticity and meaningful connections with brands,” she explains. “Impulse buying still happens, but is increasingly driven by value, origin and uniqueness.”
Bucking the regional trend, Hallaste says Vana Tallinn has been performing well on board ferry lines this year, with a dedicated display wall (above) introduced with Viking Line, one of Scandinavia’s biggest ferry operators, at the start of the year. More widely, however, duty-free operators are tightening their listings, she notes, giving priority to larger brands with stronger marketing support.
“This puts additional pressure on niche premium products to prove their relevance and justify their price positioning,” Hallaste reasons.
