Major spirits brands share key travel retail trends during ‘Beyond the Bottle’ panel at ASUTIL
Dr. Peter Mohn, CEO of m1nd-set; Greg Ford, General Manager Travel Retail Americas at Pernod Ricard; Nathan Ellingson, Regional Director Americas Global Travel Retail at Suntory Global Spirits; Andre Muller, VP Commercial at Diageo Brazil, Paraguay & Uruguay; and Yann Isambert, Vice President Travel Retail Americas at Moët Hennessy, during the "Beyond the Bottle" panel at the ASUTIL conference
Travel retail executives from some of the world’s largest spirits companies gathered at the ASUTIL conference in Peru to share crucial insights about evolving consumer behavior and strategic initiatives across Latin America. The “Beyond the Bottle” panel revealed significant shifts in how travelers approach duty free shopping, particularly among younger demographics.
Dr. Peter Mohn, CEO of m1nd-set, opened the discussion by presenting comprehensive data from his company’s Business Intelligence Service, which interviews 25,000 to 30,000 passengers annually at airports worldwide. The Swiss research agency’s findings revealed major trends reshaping the travel retail landscape, with significant implications for how spirits brands approach the Latin American market.
Key trends reshaping travel retail
- Younger demographics driving growth
One of the most striking findings from the m1nd-set research was the dramatic shift in purchasing demographics. Globally, Gen Z alcohol purchasers have increased from 3% to 10%, while millennials have grown from 16% to 38% of alcohol buyers. This trend is even more pronounced in Latin America, where younger consumers are increasingly dominating spirits purchases.
“There are more younger people buying alcohol and the boomers are actually getting less and less quite dramatically,” Mohn stated during his presentation.
- Experience over price
Perhaps the most significant trend identified was the declining importance of price as a purchase driver. The research showed that price advantage as the main reason to visit alcohol categories has decreased dramatically from 26% to 17% globally, while experience-related factors have gained prominence.
“Don’t get me wrong, price will always be important, but we can see a clear trend in travel retail that the experience in the shop is clearly becoming more and more important, whereas the price is reducing,” Mohn emphasized.
The trend was consistent across regions, with Asia Pacific showing the biggest drop regarding the importance of price advantage at 20%, followed by the Americas at 17%. When analyzed by age groups, the decline was most dramatic among millennials and Gen Z, with around 20% decreases each, while older generations showed only a 10% decline.
- Impulse buying on the rise
The data revealed a clear increase in spontaneous purchasing decisions, particularly among younger travelers. Impulse buyers globally are increasing, correlating with more younger people, especially Gen Zs who tend to decide very spontaneously.
The research categorized shoppers into three groups: specific planners who had a particular brand in mind, undecided planners who knew they wanted to buy a category like whiskey but hadn’t chosen a specific product, and impulse buyers who had no plans before entering the store. While Latin America showed some fluctuation in this trend, the overall share of impulse buyers is continuously increasing.
- Sales staff interaction and influence
The m1nd-set data showed interesting patterns in customer interaction with sales staff. In Latin America specifically, there was a significant peak in staff interaction after the pandemic as people were “desperate to talk to people to interact” after being isolated at home. However, this interaction rate has been declining year after year.
Notably, while fewer people are interacting with sales staff, the impact of those interactions has become stronger, “actually reaching a new peak,” said Mohn.
- Shifting purchase motivations
The research revealed significant changes in why people buy alcohol in travel retail. Own consumption has remained relatively stable, increasing slowly from 46% to 49%. However, gifting has “dramatically decreased” from 35% before the pandemic to 23%, though it’s slowly recovering to 26%.
The most striking change was in sharing occasions, which “went up dramatically” after the pandemic as people became more social. “People actually bought for sharing,” Mohn noted, stating that this trend has remained elevated, particularly in Latin America where sharing has actually overtaken gifting as a purchase motivation.
Pernod Ricard: Local connection and innovation
Greg Ford, General Manager for Travel Retail Americas at Pernod Ricard, emphasized the importance of creating local connections and disruptive experiences. Ford shared several innovative approaches his company has implemented.
“Now more than ever, we have to fight harder to capture the attention of the shopper,” Ford stated, noting the growing importance of digital technology and convenience as shoppers can easily order products from home.
Ford detailed an innovative trial using Uber advertising to reach travelers en route to airports during the launch of Royal Salute Miami edition. “We looked at whether or not this kind of advertising where you are going to prompt the shopper to have an offer that’s relevant to them on the way to the airport,” he explained. While results were mixed, with good click-through rates, Ford noted the challenge of making the content “really easy to understand and easy to then go and buy.”
Ford highlighted the company’s ability to quickly capitalize on cultural events, citing a Lady Gaga collaboration on Copacabana beach that was translated into airport environments with just three weeks’ notice. “Sometimes we have to accept that there’s going to be a need to sacrifice some efficiency in order to be agile and respond to these kind of events,” he said. This approach allows travel retail to become “where the traveller is going to be proud to take home. It’s a memento of their event that they’ve been to.”
Pernod Ricard has developed strategies around predictable cultural events. Ford described targeting the 4 million people traveling for Diwali through Middle Eastern and Indian hubs, creating specific packaging for the occasion. In Latin America, they started with Brazil’s Carnival, creating “a specific carnival gift bag and activation.”
Ford showcased Skrewball peanut butter whiskey as an example of creating playful, attention-grabbing experiences. The brand, which went from zero to 700,000 cases in six years in the US, allows for “crazy stuff in the airport” that can “distract the shopper and make them stop and think.” Ford noted that “Brazilians and Americans in particular are big explorers within the liquor category” looking for something different.
Ford presented a Japanese example with KI NO BI, where customers could book special offers during the airline booking process, receive in-flight information about the brand, and gain access to the distillery if they purchased either in-flight or in stores. “This is where we use all the facets of travel retail” to build deeper brand relationships, he said.
Suntory Global Spirits: Category-first approach
Nathan Ellingson, Regional Director for Americas Global Travel Retail at Suntory Global Spirits, advocated for a fundamental shift from brand-centric to category-first thinking. Despite acknowledging that Suntory is “probably the smallest in the region,” Ellingson emphasized the importance of collaborative growth strategies.
“The big transition that we need to make as the commercial teams is not really taking that exclusively brand centric approach, but it’s really to be a category approach. What is it that we can do to partner with each of our retail partners to get more people into the stores?” Ellingson explained, noting that conversion rates in Latin America are still at pre-pandemic levels.
Ellingson outlined Suntory’s framework for understanding consumer behavior, breaking down motivations into five key areas that address what customers are looking for when buying:
- Making memories for themselves and others
- Thoughtful gifting (acknowledging it will “always be very important in travel retail”)
- Social connections and sharing experiences
- Products they can’t find elsewhere
- Unique experiences to share with friends and family
As a concrete example of this strategy, Ellingson highlighted Suntory’s new shop-in-shop at JFK Terminal 4. “We launched a shop in shop Terminal 4 JFK. Many of you may know this space kind of a forgotten space – unused, not fully maximised by the operator,” he explained, describing it as more than just standard brand positioning.
The space targets both international and domestic passengers while serving as a branding opportunity. The activation features Maker’s Mark with local New York relevance through their Wood Finish series. “This is only available at JFK. It’s a tailored product, not just packaging. So we have a really unique offer, but I think touches a lot of those key points that we’re talking about, right, gift ability, local relevance, all of that.”
Ellingson noted that since launching a couple of months prior, “ The response from the operator and from the brand has been very positive.”
Looking ahead to Latin America expansion, he acknowledged that “our presence in Latin America, as many of you know, is not where it needs to be. We’ve got some exciting things that are coming up for us in Brazil, have announced some exciting things in Panama as well.” He positioned the JFK activation as a template for taking “that relevancy to the region, the customer and our retailers so that we’re growing the overall business.”
Diageo: Premiumization and cultural engagement
Andre Muller, VP Commercial at Diageo Brazil, Paraguay & Uruguay, highlighted the significant untapped potential in Latin America, framing it as a major opportunity rather than a challenge. He noted that while the US represents about one-third of Diageo’s business and is “a very mature market” where “the spirits category surpasses the beer category,” Latin America presents a different landscape.
“In Brazil, where I’m based, we are the 4th market globally in terms of size in total alcohol, but there are only 14th market in spirits. So we have a lot to do,” Muller observed. He emphasized that Diageo Latin America holds only 4% market share in the total alcohol market across all countries in the region, representing enormous growth potential.
Muller identified two complementary trends: premiumization, where “the premium segment is growing three times faster” at 20% growth versus 7% for value segments, and the need for basic category recruitment and penetration in a region where consumers aren’t yet fully engaged with spirits.
“I think we need to take the time of our category, be more into culture to listen to these people,” Muller said, referring to Gen Z and Millennial consumers. He cited successful cultural activations with Korean DJ and music producer Peggy Gou at Heathrow and Dubai airports, noting that these efforts drove “not only presentation, but also more value and market share.”
Muller positioned travel retail as crucial for category development: “It’s where we build brands, it’s where we have the attention of consumers to our category. Our category is a destination category in most of the stores you have and partners we have.”
The executive announced a major new investment at São Paulo’s Guarulhos Airport. “We are just launching a new area in the Guarulhos Airport, which is the biggest store in terms of sales we have for Johnny Walker, 50-metres-square area for Johnny Walker that’s going to drive visibility, education and experimentation with cocktails,” Muller explained. He noted that Brazil represents a significant market for the brand globally.
The investment reflects Diageo’s broader vision for experiential retail. “As Peter was saying the experience in the activation is starting to matter way more to consumers rather than price and other stuff. Consumers are asking for us to be more connected and our brands to be more part of their experience and journey.”
Muller presented Diageo’s concept for next-generation travel retail experiences, featuring opportunities where consumers can try products and cocktails in-store before purchasing. The concept also includes dedicated gifting spaces, recognizing spirits as one of the major categories in travel retail with significant room for growth.
Moët Hennessy: Portfolio strategy and regional focus
Yann Isambert, Vice President for Travel Retail Americas at Moët Hennessy, outlined his company’s unique position managing both spirits and champagne portfolios across a geographically diverse region with distinct preferences.
“The reality is that our world in the Americas is really separated between Champagne and spirits. Champagnes more Latin Americas and spirits more up north Mexico and of course the US, Canada and the Caribbean,” he said.
Isambert emphasized retail as the first pillar, highlighting major permanent installations. He mentioned the Les Caves de Champagne concept in São Paulo, which launched two years ago and “is really changing the game” for champagne visibility and brand presentation in South America. For spirits, he cited the Hennessy Pure White activation at the Montego Bay shop in Jamaica as “really astonishing” in presenting their brands and promoting their cognac portfolio.
In Mexico City, Moët Hennessy has redesigned the Concord location, mixing champagnes and spirits in their own space, which allows them to showcase their full portfolio across both categories.
The second pillar focuses on human capital, with Isambert emphasizing the importance of sales ambassadors. “Sales ambassadors are key for us and we have we were having a number of sales ambassadors which were quite low and we have been investing a lot in sales ambassadors. We have something like triple the number of sales ambassadors in two years in several markets across the region.”
Unlike single-category competitors, Isambert emphasized Moët Hennessy’s ability to leverage their diverse brand portfolio across both champagne and spirits categories, particularly important in markets where they can cross-sell and create comprehensive luxury beverage experiences for travelers.
