International spirits categories have long dominated the US$8.9bn global travel retail liquor business. The big multinational-owned stars of the scotch whisky, cognac and vodka segments proliferate the duty-free shelves of airports globally. Outside of their home markets, however, these brands lack the sense of place that GTR operators and their airport landlords strive to create for their customers.
This is where speciality spirits can come in – much-cherished regional favourites with a strong domestic base that possess great potential as souvenir and gift purchases among overseas visitors. From Greek ouzo and Scandinavian aquavit to regional brandy, these segments play a vital role for many travel retailers, adding colour to their assortments while generating much-needed sales.
Greek spirits benefit from tourist boom
Despite blistering summer temperatures, Greece’s tourism sector is set for a record year in 2024, with more than 35m arrivals and EUR22bn (US$24bn) in revenue generated, according to Bank of Greece forecasts.
One company benefiting from the tourist boom is Lesbos-based Ouzo of Plomari Isidoros Arvanitis, which has been producing ouzo in much the same way since 1894.
Using certified organic anise grown on the island, the ouzo is distilled in 18 small, hand-made copper alembics according to a secret recipe. Over the first six months of this year, company consultant Konstantinos Trivyzas says, Plomari has performed well, with overall sales rising 10.3% in all markets. Business in Greece’s duty-free stores, meanwhile, has been brisk.
Trivyzas adds that tourist arrivals this year have been up on average by 22%, driven by the popularity of the capital Athens, the northern city of Thessaloniki and the islands of Crete and Rhodes.
To drive further interest in the brand and celebrate the company’s 130th anniversary, Plomari has created a commemorative bottle that has gone on sale in larger GTR outlets and at Plomari’s brand museum on Lesbos.
Greece’s famous sweet brandy, Rémy Cointreau-owned Metaxa, a blend of muscat wines from the Aegean Islands, aged wine distillates and a ‘secret combination’ of Mediterranean herbs and botanicals, has also been capitalising on Greece’s tourism boom this year. “Metaxa has launched a variety of new products this year within the Greek travel retail market, to ensure its portfolio is diverse enough to meet different consumer needs,” confirms Rémy Cointreau GTR marketing director Alice Hoffmann.
“Metaxa 5 Star Greek Orange (below) incorporates a refreshing citrus-forward profile that’s perfect for consumers who are open to exploring new flavours from a brand they already know and enjoy,” she adds. “Metaxa 7 Star Mati limited edition targets travellers who are looking for gift and souvenir purchases – it’s an ideal way to take home a taste of their Greek summer holiday.”
Hoffmann reveals Metaxa is also showing considerable potential outside of its home market. “We’re experiencing a demand for Metaxa across Europe, fuelled by travellers from Germany and Eastern Europe – when they’ve travelled to Greece, they return home and seek it out, driving sales in those countries too,” she explains. “There’s definitely a lot of potential to develop Metaxa’s presence in these markets, and also in the US, the UK and Australia, where the Greek diaspora have settled but are rediscovering the brand.”
Aquavit battles weak currencies and generational challenge
Aquavit, the ‘water of life’, remains deeply ingrained in Scandinavian culture, its history dating back centuries, employed for medicinal use, social gatherings and as a culinary ingredient. Even today, a celebratory glass of aquavit is an indispensable part of many festive occasions, especially during the summer months.
As a result, aquavit has traditionally enjoyed a strong presence across Scandinavia’s GTR market, which remains dominated by the Baltic ferry lines. Leading Nordic wine & spirits company Anora boasts several aquavits in its portfolio, including the best-selling brand Aalborg Akvavit from Denmark; Linie Aquavit, a Norwegian aquavit aged in Spanish sherry casks; and the organic Swedish brand O.P. Anderson. According to the company’s marketing director for Nordic brands, Mika Raukko, trading conditions in the region are slowly improving.
“Passenger numbers remain below pre-Covid levels, but we see some positive developments depending on the operator,” he says. “For the Nordics and Baltics, the challenge is still the weaker macroeconomic trend and the low NOK and SEK currencies. This has led to fewer Nordic travellers with less spending power, particularly for Norwegian and Swedish products.
“Consumption patterns are changing, with consumers opting for lower-tier brands and smaller SKUs due to high inflation and rising interest rates; some reducing consumption for health & wellness reasons,” he adds, noting that while older generations are still enthusiastic purchasers of aquavit, younger LDA consumers need to be educated about the spirit and the many ways in which it can be enjoyed.
“Mixing drinks and cocktails is a great way to get acquainted with the flavour of aquavits and to learn the versatility of the spirit,” says Raukko. “We’re so grateful for the bartenders picking up aquavit and mixing amazing cocktails with it and spreading the aquavit knowledge across the world. Sampling in the GTR channel is a great way to introduce aquavit as a versatile spirit.”
To stimulate further interest in Anora’s Opland Norwegian aquavit, a super-premium brand aged in oak barrels, the company has introduced a channel-exclusive expression, Opland Smoky Finish (below), inspired by the myth of Huldra, a Scandinavian forest spirit. Priced at NOK399 (US$36.90) for a 50cl bottle at Oslo Airport, Opland Smoky Finish is aged in oloroso sherry casks and smoky whisky casks for a minimum of three years.
Brandy looks to Asia and the Gulf for GTR growth
The strong relationship between cognac and duty free goes back decades and it’s a powerful bond that still endures today. Yet regional brandies also have their part to play, often offering better value for money. Spain’s Torres Brandy, whose flagship expression is Torres 10, has even managed to break free of its home market to grow a sizeable duty-free footprint, according to Familia Torres GTR director Bruno Teixeira.
“Geographically speaking, we have a strong position in Europe and are working hard to reach this positioning in other regions such as the Middle East, Asia and the Americas,” he reveals. “In all these markets, and mainly Asia, our main focus is on travelling consumers who look for [super] luxury products like, for example, unique or limited editions. Of course, in the other markets, we also serve the more traditional segment of consumers who are simply looking for a saving by comparing duty free and their home country prices.”
In the Philippines, one of the world’s biggest brandy markets, Teixeira says the company is working on a new business model, which takes advantage of its main local distributors that could develop the country’s duty-free market for the brand. Meanwhile, back in Spain at Familia Torres’ home airport of Barcelona-El Prat, the brand is about to open a dedicated wall bay that will display a wide range of Torres expressions and brand information.
Above all, Teixeira believes GTR remains an excellent testing ground for innovation before a wider domestic market roll-out as exemplified by the launch of Torres 10 Double Barrel in 2018. The channel is also the ideal showcase for collectable releases such as the Reserva del Mamut 1985, a parellada grape brandy aged for over 30 years in Limousin oak barrels, priced at EUR1,300 (US$1,439) in Spanish airport stores.
French brandy Bardinet, established in 1857 and now owned by multinational La Martiniquaise-Bardinet, has experienced challenging market conditions this year, according to international marketing manager Laure Habbouse.
Despite this, India, with its strong local brandy market, has bucked the trend, with the southern airport of Cochin proving a particularly strong-performing sales location. The Gulf, home to many Indian subcontinent expat workers, is proving another strong market for Bardinet, she reveals, highlighting the contributions of Muscat, Dubai and Qatar’s Hamad airports.
Tourists keep grappa airport sales ticking
Born from the humble beginnings of utilising winemaking by-products, grappa has evolved into a sophisticated, much-cherished Italian beverage deeply embedded in the county’s agricultural traditions. After a post-pandemic bounce, grappa production declined in 2023 by 3.3% to 8m litres, a victim of the cost of living crisis in Italy, according to trade body AssoDistil.
Yet the country’s healthy tourism sector has helped grappa to perform strongly at the country’s airports. “In the last two years, tourism registered strong growth in Italy,” says Sandro Bottega, the CEO of Bottega Spa, a major grappa and prosecco producer. “Rome, Florence, Venice and other artistic destinations have driven the increase in tourist numbers, but seaside resorts and mountain destinations have also proven very popular among international travellers.
“Duty-free and retail stores inside airports benefited from this flow; we are satisfied with the sales trends for grappa over this period.”
While Bottega’s diverse grappa portfolio in GTR includes high-end expressions such as Alexander Exquisite Premium and Grappa Maestri Bottega, this summer the company has promoted a “young white spirit” called Alex Grappa Blanca (above), which is intended to be drunk cold. Bottega’s suggested serve for this distillate is to chill it with frozen fruit such as grapes, blueberries or orange slices.
“Grappa could be the new tequila,” insists Bottega. “Consumers are increasingly appreciating the acquired taste of our distillate. The superior quality and the links to Italian cuisine will also help the growth of grappa in international markets.”
For GTR operators, regional spirits remain a valuable asset, offering unique products that resonate with tourists seeking authenticity. As tourism rebounds and tastes evolve, these speciality spirits have an assured, albeit modest, future in travel retail, if marketed astutely.
