In Episode 043 I continued the conversation with André de Almeida from Episode 042. In this part we digged into GTR, Global Travel Retail as a Bottom-up Channel.
André is a Drinks Industry Consultant and Founder of the "Inside the Cask" website. André has 20 years of experience having worked with Loch Lomond Group, William Grant & Sons, Edrington, and other drinks companies. He is also a Drinks Jury Member at Spirits Selection by Concours Mondial de Bruxelles.
Time Stamps
0:00 Intro
0:14 Global Travel Retail Logistics
7:55 Segmenting Airports
10:31 Local Airport Advantage
13:42 Airport Stakeholders
18:35 Staffing Airports
22:11 Identifying Your Consumer
34:42 Local vs. Standardized Airport Selection
41:07 Wrapping Up
About The Host: Chris Maffeo
About The Guest: Andre De Almeida
In Episode 043 I continued the conversation with André de Almeida from Episode 042. In this part we digged into GTR, Global Travel Retail as a Bottom-up Channel.
André is a Drinks Industry Consultant and Founder of the "Inside the Cask" website. André has 20 years of experience having worked with Loch Lomond Group, William Grant & Sons, Edrington, and other drinks companies. He is also a Drinks Jury Member at Spirits Selection by Concours Mondial de Bruxelles.
Time Stamps
0:00 Intro
0:14 Global Travel Retail Logistics
7:55 Segmenting Airports
10:31 Local Airport Advantage
13:42 Airport Stakeholders
18:35 Staffing Airports
22:11 Identifying Your Consumer
34:42 Local vs. Standardized Airport Selection
41:07 Wrapping Up
About The Host: Chris Maffeo
About The Guest: Andre De Almeida
The MAFFEO DRINKS Podcast is a leading drinks industry podcast delivering frontline insights for drinks leadership.
For founders, directors, distributor MDs, and hospitality leaders navigating the tension between bottom-up reality and top-down expectations.
20+ years building brands across 30+ markets. Each episode features drinks builders: founders, distributors, commercial directors, sharing how the drinks industry actually works. Not the conference version. Honest conversations.
Insights come from sitting at the bar.
Beyond episodes: advisory for leadership teams, subscription with episode deep dives and principles to navigate your own reality.
Beer, wine, spirits, Low and non-alcoholic.
Bottom-up Insights & Episode Deep Dives at https://maffeodrinks.com
Welcome to the Mafia Drinks
podcast.
I'm your host Chris Mafiao in
episode 43.
I continue the conversation with
Andrea de Almeida from episode
42, so feel free to listen to
that as well.
I hope you will enjoy our chat.
That that brings me to another
point, which is another like
part of your experience within
which you are, you know you are
a reference at least for me
which is which is the global
travel retail, not like the GTR
or however you know it's called
in the in PowerPoint
presentation because that is
another of those channels that
can play a nice role as part of
the bottom up trade.
You know, it's a bit of an
expensive one to play with
within, but it's also like
another element because there is
also like some of these aspects
that come into play.
You know it's a very nice from a
brand building perspective
there's people helping you
selecting if you want them to
help you is not really just a
supermarket floor kind of thing.
Now So what is let's say the
first element, let's, let's
bring people into this this
conversation.
You know it's it's a bit of a,
it's a big monster to deal with
now because I mean we we spoke
previously about you know the
the small independent, you know
there is an owner that maybe
have one shop or two or three
shops relatively easy to deal
with and then the travel retail
is more of a big monster.
Now one of those things that I
always say, you know, be careful
what you wish for in terms of
you know, investments, rules of
engagement, you know logistics
is a big chapter of your journey
in building brands bottom up
now.
So how tough is is it really?
It it can be very tough, special
if you don't know what you're
doing.
There can be some.
I've I've seen some people who
made some very expensive
mistakes.
So you do have to to be careful
about that.
The first question I always ask
anyone that I'm talking to about
duty free global travel retail
is why do you want to be in
global travel retail?
You know, make sure you
understand what's the motivation
behind that and also what's your
level of ambition in terms of
travel retail because people may
see the the brands that they see
out there, whether that's from
William Grant's or or whoever it
may be.
But they haven't seen all the
work that's taken over many
years to get them to the
position that they're in now.
And yes, it's a big category.
It plays a huge role from both a
sales on marketing perspective
in the case of these bigger
companies, obviously as I said,
they've spent a lot of time and
money building that presence
over many different locations
internationally.
So if you are new to the to the
landscape that's the first
question, why do you want to do
it and and what's your level of
ambition, you know and is it
local, is it regional, is it an
international overtime presence
that you're looking for?
There's a lot of things that you
need to understand because
airports and a lot of people
talk about airports because
that's the first thing that they
come across because that's what
they see when they're traveling
out there.
But the reality is travel,
retail, Dutchie Freeze
encompasses, you know, different
types of shops.
You know you're talking about
airlines, airports, Nordic
faddies which are all part of
this tier one if you like, but
equally includes diplomatic
stores, border shop, ship
Chandlers etcetera, which is
what we usually would classify
as a Tier 2.
And and the reason I I classify
and separate the tier one and
Tier 2 is because you're tier
one, your Air Force etcetera.
It's where potentially from a
brand perspective you want to be
part of, you want to be there.
But commercially can be very
challenging in terms of the cost
both from a margin perspective
as well as investment.
Whilst the Tier 2 brands
typically don't tend to focus as
much on on those areas, although
they are equally as important
and commercially they're not as
challenging as the tier one.
But by if you want to make your
P&L work in travel retail,
typically you need to look at
both and you need to look at
having a good mix of business
across both, both the Tier 1,
the Tier 2 side.
But, but what brings the
complexity as well is that every
type of shop, every, even if two
airports are never the same,
there's different rules and
different locations.
It can be very confusing more
for consumers as well As for
people trying to bring the
brands into the channel.
That's what makes it quite art
amongst there, as you say, and
what it makes it quite
complicated at times for people
that want to get into it.
Listening to you, there is an
element of you know brand
building aspect and there's an
element of let's say trial
driver and there's an element of
volume driver now.
So like listening to you like
the tier one is more of a brand
building showcasing the brand.
You know like this influential
like the world's fifty best kind
of focus from you know if we
bring it back to the entree you
know parallel while the the Tier
2 would be more of a OK volume
drivers.
It's the average bar where you
can actually drive volume with
your, you know, gene and Sonics
after work, You know, instead of
a mixology kind of experience,
right?
Yeah, although the analogy would
also apply even to airports to
be honest, because you're
Heathrow airport versus your
regional airport, it could be
the same analogy applied between
your top 50 bar and your local
bar, right.
So I think the the first thing
is to understand the landscape
and to understand what weight is
it that you want to to play
within travel retail.
And like I said they it can be
very different and the
challenges and costs and
opportunity very different
across the different types of
operations across whether it's a
tier one or a Tier 2 side of the
business.
So, so there's definitely a lot
to take into account and and you
you indefinitely.
You will need help of some sort
or throw yourself in and and
make the mistake along the way.
If you think of, you know, like
I mean big brands, it's a bit of
a given.
I mean like they're all there,
you know, with a bigger or
smaller presence depending on
the airport and and so on.
But what is you know?
How can how can small brands get
in into this game?
You.
Definitely need to be choiceful.
You need to be choosy and and
picky about where is it that you
want to go in and and be very
clear in terms of what's the
role that travel retail is
playing for you within your
overall business strategy.
You need to also make sure you
manage your expectations in
terms of growing, growing
stages, don't take more on than
than you can cope with because
again although there's plenty of
opportunities they are equally
the cost can be quite
challenging.
So I would certainly say take a
test and learn approach because
equally what works locally may
not work nationally, may not
work internationally, what works
in airports may not work in a
ferry, may not work in a border
shop.
So that's why the the whole test
and learn approach, it's
something that you need to to to
take into account.
The other thing is obviously
making sure you understand how
travel retail works.
The number one motivation for
consumers to purchase and travel
retail is gifting, whether you
are gifting to yourself or
gifting to others.
So that in itself may present
opportunities which you may not
have within your existing offer
at the moment.
So you may need to think about,
OK, what can I develop that
would work within travel retail.
All all of those you need to
take to account by effectively
you need to look at the at the
sales fundamentals.
You need to understand the
landscape.
You need to look at, you know,
price, promotion range,
merchandising, what does it look
like?
You know benchmarking yourself
against other players within
travel retail so that you can
understand where the opportunity
lies.
Going back to your previous
example when we were talking
about the 50 best bars, I think
that a common mistake that I see
brands do is that, you know,
like liking on trade, you know
they want to be in the 50 best
rather than the pub down the
street.
You know, the they do the same
mistake in in airports.
No, they're local and they want
to be in Chelsea, de Gaulle,
Paris, you know, Schiphol,
Amsterdam, London, Heathrow.
It's just like you want to play
football and you want to play
Chelsea or Manchester United the
first game you know.
So what would your advice be
focusing on?
Maybe like smaller airports or
you know like or or is there a
specific channel within the
channel like ferries are a lower
entry barrier than an airport or
like what?
What would you advise on?
Of course, depending on region.
Region by region, Yeah.
No.
Again, there's no simple answer
because again, it does vary
quite a lot.
Location by location, you're
talking about airports.
All airports are not the same.
So you need to understand what's
different between the different
airports in terms of
demographics for those
passengers, destinations,
carriers because you know
there's a difference between a
food service carrier versus low
cost carriers and how consumers
behave within those
environments.
So what's the reason for travel?
Is there a business traveler
that does frequently or is it
someone going on holiday once a
year, what's the time for that
travel?
So there's so many different
elements that you need to take
into account and again that in
itself can provide a, a
different opportunity once you
get under the skin a little bit,
all those airports in that case.
But what I like about some of
the, the smaller airports is
that, you know, a lot of times
there's less competition,
there's less focus there.
Allows you back to what I said
about the test and learn
approach, allows you sometimes
to test different mechanics to
to maybe go for consumers that
at a lower cost than it would if
you're trying to go into
Heathrow or if you're trying to
go into one of the bigger
Amsterdam or whatever, it may be
one of the bigger airport.
And and I think that's where it
can help you in your journey
within travel retail.
I would always say that you
should start local, because if
you're a brand and you have no
presence locally then I think it
will be difficult to justify you
being listed somewhere far-flung
from from where you're based
where you're from.
My first advice would be to look
locally, whether that's an
airport, airline or train or
ferry or whatever it may be, but
definitely start local.
This is a great point because I
actually wanted to ask you the
question because I'm a I'm a big
fan of, you know, winning the
home surf first because you need
to be relevant.
There is this friction because
in a way there is like no, no
one is a prophet in his own
land.
And then on the other end, if
you cannot convince your locals
to drink your brand, you know
how tough is that going to be,
you know, later on.
So then you are at the risk of
becoming a bit of a gimmick and
like a tourist, kind of like
bottle of limoncello.
You know it's flying back from
from Naples airport on a visit
on the Amalfi coast kind of
thing.
I I hear what you say that you
know it's important to focus on
the local, whatever that is, an
airport, an airline, a train or
anything that can play a huge
role in building that brand and
building that relevance.
When you want to go and
negotiate with someone bigger
that will ask you, are you in
that airport near your?
Hometown.
Yeah, no, exactly.
And I like you said, if you
can't show that, that you can't
make yourself relevant locally,
how can you show that you're
going to be relevant elsewhere?
You know, very difficult.
Plus people are always looking
for examples, you know, proof of
concept effectively.
OK, great that you've done a
great job domestically or
locally within domestic
business, but what does that
mean in travel retail, you know?
And then again if you're not in
your local whatever it may be
air for 30 whatever it may be
that you're targeting, it's
going to be very difficult to to
have that argument with the the
operator in in elsewhere.
So that's that's the challenge.
I think locally also means
making sure that people
understand what you're about,
what you stand for, what's your
value proposition, right,
because ultimately you're not
going to personally be selling
that on the in the shop floor.
So there's a lot of influence in
and education required both
internally and that's what I I
think sometimes people forget OK
it's fair enough if you're a
small business or and and it's
you and and a handful of people
but even if you're a medium
sized business I think sometimes
people forget that the education
is just as important externally
both to the the operator, the
third parties that you may be
working with to to have your
product there on shelf in a in a
travel retail environment.
But equally internally you know
from my experience whenever I've
worked with travel retail before
especially in businesses where
travel retail was new as a
concept to them because they
haven't really operated in our
environment before.
I've always spent a lot of time
internally educating whether
that was customer service and
supply chain logistics thing.
Paranal stakeholder because
you're asking potentially the
business to give you tools to to
show a certain amount of
flexibility that frankly they've
never been asked for before.
So helping them understand why
is it that they should be doing
this has great value.
And what you find is that most
sales people tend to be very
focused externally and they
forget about the internal.
Customer and that's that's a
fantastic point there.
Just to clarify for people that
are not familiar with the, the,
the travel retail and let's
call, let's talk about the
airport just for the sake of
simplicity, otherwise it's a bit
of a huge topic.
Who are the players that you
talk to, you know, in the
airport?
Because I mean there is a shop,
there is an airport.
Who are the stakeholders to talk
to when trying to enter?
You know, try to end up on a
shelf in a in a duty free shop
in an airport?
The environment is well,
obviously very different to a
domestic environment where if
you domestically, if you go to a
shop and you can't get in there,
then maybe another shop in
another block or down the street
that you may be able to
influence an airport.
It's a tender based business,
right.
There's not going to really be a
competition or it's going to be
very limited.
You have to undend therefore
understand who the operators are
within that industry.
A lot of them are global and
there's a lot, a lot of
consolidation happen over time,
whether that's people like do
free stroke ward, DiCaprio,
they've just changed their name
or Heineman or whoever it may
be.
You need to understand who those
operators are and there are some
great publications out there
online available for free,
Moody, David report, travel,
retail business, etcetera.
If you just Google that, you'll
be able to find a lot of that.
But what you have to remember is
that it's not just the head
office.
You also have to influence the
local team, the regional team,
the staff on the shop floor and
use them as a source for
insights as well before you even
consider approaching the head
office.
But equally you've got staffing
agencies because of the security
aspect of airports in you may
not aside to be able to go and
sell it yourself or you may not
be able to be on the shop floor
there.
Therefore you you have to use
staffing agencies and again
they're great as a source of
insight because obviously they
work with different brands.
They know what works, what
doesn't.
So again, that's another
relationship that's worth
interacting with before you
bring the products to market at
airports.
You know, if you're talking
about airports, then don't
forget the landlord, you know
the landlord in terms of the
airport, actual marketing and
commercial teams because they
are going to have their own
metrics, their own priorities,
especially if you're playing the
local card, that's always going
to be something that's going to
be important to them.
So understanding how you could
possibly work with them, what
opportunities that could be by
getting to know that that team
better to influence the
operator, the retailer equally
what's the logistics because
especially since the pandemic in
a similar way to what I've seen
in part of their own trade, a
lot of the operators don't
necessarily want new suppliers
plus you may not be willing to
provide the service level that
they are willing to give, right,
because some of these operators,
they may want two drops a week
with a minimum of one case.
Now it may be too expensive for
you to be able to do something
like that.
So it sometimes it's better to
use a rich market solution, a
logistics supplier that already
works with that operator with
our duty free retailer and again
getting to know them may also
provide other opportunities.
So these are just some of the
people that are involved in the
infrastructure around supplying
and therefore again listed in
the airport in travel retail.
Listening to you like that makes
me also think that there is an
element that all these players,
if you work well with them, they
can also enable different
conversations.
Now because maybe you know the
handler of a smaller airport is
also the handler in a bigger
airport and then maybe could
help you put the foot in the
door or vice versa.
If you are talking to the
operator of a smaller airport,
maybe the the contact of a
smaller airport is going to be
easier to reach and more
approachable in general because
you know he or she has to deny
much less phone calls than the
than the guys in Israel.
My experience of, for example,
Loch Lomond Group, when I worked
there, I helped set up the duty
free business from scratch and
that that was a big part of
that.
It was getting to know the local
teams, Glasgow and Edinburgh
airports, which are obviously
the the two main ones.
Not forgetting all the airports
in the area, but that we started
in Glasgow before we moved to to
Edinburgh and all the airports.
But it was getting to know that
the staff and agencies, getting
to know the the airport teams,
the the local operator teams,
you know the regional managers
that the people on their shop
floor etcetera.
Because again you're trying to
understand how does your brand,
your value proposition fit
within what they have and
ultimately an operator or
retailer like in any other
channel they are looking to grow
their business.
It's not about substitution, is
not about selling more of you
less of someone else for them,
right.
Their metrics are going to be
how do I grow the pie overall
and if you can fit into that
then you've got a good chance of
getting your product in and and
getting a supported.
You would mentioning also like
that the importance of you know
like because of security reason
and many other reasons like
this, No, no chance for you to
be in that store sporadically.
You can get in and get a permit
to to be the salesperson there
at the store.
But there are these staffing
agencies that you were
mentioned.
Also it's not the usual Rd.
You know like it's not like you
are hiring a brand ambassador
that can go from bar to bar.
You need to rely on external
people that have made the
selection for you.
What's the element of you
selecting those people and and
selecting the right fit for your
brand?
Because I'm assuming that there
is a more of A1 size fits all
kind of approach usually, so you
may want to add something more
tailored to you and and your
brand.
Yeah.
I mean that there's different
staffing agencies in different
locations around the world.
What I would always say is,
especially for the markets
closer to home for your local
markets is get to know the
people.
Because ultimately I I've always
been of an approach of pick the
people first rather than the
agency.
That's always been my approach
and the reason I knew the people
is because I frequented that the
airport enough that I got to
know the staff and and just like
you do when you go into a bar
and you talk to the staff and
you want to get a sense of the
place.
That's what I would do when I
was traveling through an
airport.
Whether I had a reason for or
not, I would be speaking to the
staff because.
Whenever you have those
interactions, you're picking up
some sort of insight, you're
picking some sort of
information.
So the creation, especially if
you're a smaller producer, the
creation of this virtual travel
retail team through a marketing
agency and installation agency
that understands the channels,
staffing agency that operates in
the channel and trying to make
sure that they understand your
brand.
B, if you're passionate about
it. 8th extremely important.
I mean, what I've always tried
to do is bring them to the home,
to the weather distilleries were
at least once a year and also
for them to meet others even if
they came from different
agencies because again to build
this, this team, they had to
feel like a team do you have to
bring them to the the home of
the brand.
So that's something I did in
different companies and I was
always a big supporter of doing
that kind of activity, even if
it may.
There's a risk of you losing
that person because they don't
work for you.
They're a third party agency,
whatever.
But I thought that was
important.
And even if they left, they
would be another brand advocate
for your brand.
So you may see the benefit
elsewhere anyway.
So that for me has always been
really, really important.
The people first, agency second,
if you can, If you can't, then
try to obviously get to know the
agency so that you know what
they stand for, how they
measure, how they communicate
back with you so they can manage
that as best as possible because
ultimately we're all trying to
influence the shopper journey.
The shopper journey as as you
said, is very different to
domestic because you know
consumers are looking at their
travel before they get there.
Then you've got the arrival at
the at the location, the check
in, the security and then
finally you're going for
departure And there's only at
that stage that you are likely
to be even considering going to
a store.
The biggest issue for travel
retail is actually penetration.
You've got this high food fall
potentially of travelers, but
the number of people that
actually go into a store and
make a purchase is actually very
small.
So, so trying to get that
attention and then trying to
convert that into a sale, it's a
real challenge.
One of the important aspects and
in what I'm listening from you
is that it's also like being
able to spot the right consumer
and the right person or in in
converting that demand because
despite I'm not a big fan of
target consumer as such, you
know more of a target occasion
in airport.
You know, even sometimes like
the way people are addressed
could play a role.
But also depending on are they
in a rush or not, when is their
flights, what type of brand
you've got?
Because if it's a more of a
geeky kind of brands, you know,
you may not want to have the the
businessman in a rush try to
convince that person or vice
versa.
You know, like there may be
different kind of people that
may shop just looking at
packaging and picking something.
Or you know, like there must be
a lot of training going on there
because what I'm what I'm
thinking is that it looks like
almost like an independent
store, but the person working
there, you know your promoter or
the the the the the salesperson
is actually not the, the owner
of that store.
So that there there is not that
element of curation and they
haven't selected that shelf, you
know, Yeah, I mean.
I like like you said time is the
main factor influencing or time
is really influencing consumers
in in in an airport or a travel
retail environment, right.
Because you're trying to
minimize that trace after
they've passed through security
and everything else so that they
can even consider the
possibility of of looking at at
the store and looking at your
product and potentially even
sampling it to maybe move to
purchase.
So time and stress definitely a
factor.
The type of traveller as you
said whether that's someone that
it's it's a precon traveller,
maybe a business traveller and
or or someone that's doing it as
A1A year kind of holiday trips
that is also relevant the person
on the shops for for sure.
A lot of those promoters are
going to be focused on certain
brands even if they look like
the work for the store
themselves they they are more
than likely promoting specific
brands.
But they know themselves and
I've and again I've spoken to
many of them that they also are
very conscious that they have to
offer good advice to the
consumer because the reality is
they may see that consumer again
traveling through the shop
again.
And if they've recommended the
product, if it doesn't fit with
what the consumer is looking
for, then they may not come and
ask for their advice again.
And OK, it may not be as
frequently as me visiting my
local store, independent whiskey
store or whatever it may be, but
they're still going to be a
relationship that you're
building there.
And again that consumer may be
driven by flavor brands that may
be different motivations for
that consumer in terms of Walt
Whiskey for example, they're
looking for.
But the advice of that person on
the shop floor who effectively
is your brand as far as they are
concerned, right, because they
are the ones that are talking
about your brand, they're
educating the consumer about
your brand.
They may be sampling the product
with you, with the consumer.
That's extremely important.
That's why I've I've said it
from the start, education is
critical and making sure that
they feel, feel, feel passionate
and understand what your brand
is about is is key as well.
Otherwise you're you're going to
struggle because if they can't
convey that, then you have no
chance of converting that
consumer into a sale.
And again, and you have to
remember that motivation can be
very different for the consumer.
Like I said, gifting is one of
the main reasons why people
purchase in travel retail.
And I still remember an example
of a consumer I spoke to in I
think it was Geneva.
I can't remember where I spoke
to her, introduced myself and
asked her why, you know, did she
drink whiskey?
I wish.
Why was she shopping there at
that category?
And she actually explained, no,
it's not for me, it's for my
husband.
Does he like the brand, which I
think it was Valmore that she
was looking at and he she didn't
know.
And then I asked her why is she
buying that in that case?
And it was because she liked the
packaging.
And obviously she basically said
and he better like it too
because obviously she's buying
as a gift for him.
So that you have to remember
also that the buyer is not
necessarily the shopper, is not
necessarily the drinkers.
So there's many different
reasons why people are in the
shop floor and potentially
looking to purchase a product
and travel retail.
What is often misunderstood
about the shopper to your
example is that sometimes like
they think OK, it's the in this
case the wife buying from the
husband but you assume that she
knows what the husband want but
she may not even know what the
husband wants and that there may
be different reason like that
she want to whatever impress him
or does she want to buy
something cheap you know like
and trying to recruit him into
something cheaper because you
may be buy but very expensive
things or maybe she looks for
something more like bang for for
box kind of thing or she may
want just like a present for
someone and it's like OK, this
is a this is a whiskey
connoisseur, what should I go
for?
And this is my price point
because I may not want to spend
100 lbs and may want to spend 60
lbs on that gift now.
So.
Exactly.
I think when we work in an
industry, we sometimes forget
that we work within a bubble.
And the reason why I go with
friends who don't work in the
industry to whiskey festivals is
because I want to see, I want to
experience it through their
eyes, you know, because they are
not someone that drink whiskey
all the time.
So I want to experience through
their eyes equally the analogy
here for travel retail that I
try to think of is what would it
be like if I went into the
beauty section, I know nothing
or very little about it and I
was trying to buy a gift for my
wife.
You know, I would be frankly
lost, which is where the
importance of signpost.
And given that those consumers,
they're the reassurance about
what they're buying as a quality
product and there's many
different ways to obviously be
able to provide that.
Clearly the staff on the shop
floor is going to be he.
Just as a bartender can have a
lot of influence and in in
influencing consumers to to buy
and try specific products
equally that person on the shop
floor will be able to do the
same.
If anyone listening to this is
keen to understand more on their
kind of retailer side metrics,
understanding the retailer side,
I would recommend a group called
the Travel Retail The Insider's
Guide by Kevin Brocklebank from
where one Red kite is really,
really excellent booked.
Someone I've worked with before,
Kevin and if you want like stock
for 10, if you like on travel
retail which will cost a lot
less than if you're taking me on
for a for a day, the book will
be a very affordable way to to
do that.
You are bringing me back to a a
part of my career that I forgot
about that when I was studying
in Rome, I was doing on
Saturdays.
I was a promoter for Nokia and
we're talking like 20 years ago.
So I I mean it was we're talking
like the 30th, the 3310 Nokia
phone that I was pushing and I
remember like especially in one
store on a Saturday was like
Christmas time and I must have
sold something between 40 and 50
phones on an afternoon, on a
Saturday afternoon.
And I remember like all this
conversation and and back to the
target consumer point now that I
I sold it to young kids with
their mom or dad, old ladies,
people buying for the grandson,
people buy from the grandma, you
know, like totally different
kind of consumers.
And I remember this particular
afternoon that, you know, the
the shop owner was looking at me
like a like a movie star, you
know, like like please come and
work for me kind of thing.
And I I remember having this
really ugly Nokia T-shirt with
long sleeves like it was a blue
with green sleeves with a
Nokia's logo on the arm, really
ugly.
And but I was there and very
often I I used to either recruit
people or put people off, you
know, depending on what they
wanted.
Because I was, I was asking them
the question and say like, do
you want something that is
simple to use or is that, you
know, sometimes I was convincing
the the person and then I was
asking the question.
I was like, but what did they
ask you to buy?
You know, did they ask you to
choose something or do they want
exactly that Motorola back then
or Ericsson back then?
Based on the answer, Then I was
driving them and I said, look
like this would be much better
for you in my opinion.
But if your son or your brother
or your aunt or uncle asked you
specifically that Ericsson
phone, you know, make a phone
call, I'll wait here, you know,
and ask them if it's fine for
you to swap that purchase
because you know, what do they
want?
So to to your point, they're
like it did.
The biggest added value for me
was that I was a Nogia user back
then, after not just started to
go down because they failed on
my promise that used to be
actually one.
One of the reason why I moved to
Finland at some point was
probably even for, you know,
going to work for Nogia because
that was my dream.
I didn't have any training.
I remember that that agency that
I work with never gave me any
training, but I was a star
because I was a user, so I knew
exactly what to do.
I knew what to click.
They didn't know how to remove
the SIM card, to put the SIM
card in, how to change the
battery.
I was doing it in in 5 seconds,
like ta ta, ta and I was doing
it for the old lady.
And anyway, imagine like a
Saturday afternoon during
Christmas time, the stories
packed and so on.
But to to your previous point
about experience, about
trainings, about picking someone
that knows what they're talking
about and they can divert
people.
Because for three people that I
didn't sell it to because they
wanted to sell it, but I didn't
sell it, then either they came
back and sold it, you know, and
they bought it, or I recruited 5
more people that didn't want to
buy it and then I pushed them to
buy it because it was the right
thing for them.
Yeah, always go back to the
consumer.
You want people to go back to
your brand and you don't want to
fool them.
Because that short sighted
Because that is, it may drive
you a quick sale, but then
equally sometimes wait, what I
find is the people that take
that approach, if you follow the
consumer they've spoken with a
lot of times you see the
consumer actually dropping the
bottle before they even get to
the cash point to the place to
pay because they weren't fully
bought into that or they buy it.
But then there's a degree of
frustration because maybe what
they were promised was didn't
deliver, right.
So if they were to travel
through that store again,
they're not going to trust that
individual that to to deliver a
piece of advice that they can
follow people.
They are really good at their
job on the shop floor, in air
Forks in the UK and beyond.
That's because they they
understand the motivation, what
the consumer is looking for,
even if that consumer is not
buying for themselves.
Maybe they are just the shop
that as I said, but equally they
can deliver against that or as
close to as possible so that the
experience is a +1 overall.
And I mean personally again it
reminds me of a of a time with a
previous company where I had
asked the agency.
So in this case, it was in
Russia, it was Saint Petersburg,
and I obviously wasn't close to
the market, so I couldn't pick
pick the the person myself.
So I bought the agency, pick
that, the staff member.
And they went for what they
thought I might have wanted.
And I remember when I traveled
to that airport in Saint
Petersburg and I knew who the
person was, but she didn't know
who I was.
And they picked this beautiful
looking Russian girl.
And yeah, great from Luke's
perspective, but ultimately
that's not what I was looking
for.
You know, I was looking for
someone and I could see another
staff member from this agency
was engaging who knew about the
category, who was really driving
sales and with their consumers.
And I saw this in a very short
space of time of visiting that
store.
Needless to say, after I
finished that that that visit, I
went back and asked for that
person because he was the kind
of person that I wanted someone
that could engage, that could
educate, that could ultimately
help to get to a sale, but
making sure that it it's feted
with the motivation what that
consumer was looking for.
This is a great point and as
well one last question because
we touched upon it, but we
didn't really close it all.
All the shelves look the same.
We discussed it about small
brands versus big brands in
these stores, all the shop, all
the, you know all the shelves
look the same.
Now they always have the same
kind of big brands wherever you
go.
You know there is this kind of
like globalization of that.
So when talking about the small
brands entering you know stores
and so on, how do you see like
is it changing with operators
and shops and you know like in
the in actually having a more
local choice and delivering that
versus the usual big names that
you may think of in in whiskey?
Yeah.
I think in travel retail,
there's definitely a huge
importance place on sense of
place, right, Because as a
consumer, when you travel a lot
of times, if you go to Rome,
you're maybe looking to bring
something back from from that
experience with you to to the UK
or to whatever you're going back
home to.
And that applies here as well.
So at a local level, we get a
local product.
There's definitely a lot of
leverage there that you can
utilize as I said earlier, not
just with the operator but also
within the operator teams, the
regional managers, the local
team, the airport teams etcetera
to try to get the opportunity to
get that listing.
So you will have a mix of your
top sellers and some of the the
local brands depend on the
operator that that you're trying
to work with the the fear and
the the issue I've always risen
in travel retail is that
typically they tend to be a
little bit more conservative
when it comes to new trends.
And my body is always to have
the shopping mall syndrome where
every shop looks the same as you
said.
And and the challenge is if
you're trying to increase
penetration, increase the number
of people that go into the store
and convert to a sales, then
clearly that's not going to
motivate travelers to
necessarily go into the store.
So for me it's always been about
how can you create a mix of
products which includes your top
sellers, your international
brands, includes your local
brands, your local offering,
your sense of place, but then
also includes innovation, new
new products, products that
potentially touch on trends that
may come from domestic whether
that's their own trade or or
whatever it may be.
So you know trying to have a a
better mix of products available
within the store and that's why
you as a creator of whiskey's or
whatever it may be, you need to
think about what's the role that
you play or you may play within
that category because ultimately
you need to think about what's
going to be your your selling to
that operator, what's going to
be the story, why should they
take you and potentially take
someone else out of that shelf
Because again it's not like an
online business that they can
just add another SKU online
right there, there's no elastic
shelves.
So how are they going to be able
to take another product
especially when the cost for
that location is quite high
given the fact that they have to
obviously share a big part of
that revenue back with the
landlord with the with the
airport airports in that case.
So that's all something that you
need to, you need to to think
about what's the role that your
products going to play within
that that range.
But certainly to any operator
out there, I'm always trying to
push the idea of don't go for
the shopping mall approach
because personally there's
nothing more disheartening as a
consumer when you travel and
everything looks the same that
you would get everywhere else.
The other thing that you also
need to take into account is
once you have that opportunity
because just like in a in a shop
or a bar or whatever it may be,
you can't just think about
getting the listing.
You need to think about what you
got to do to make that rotate to
make that sale.
Because otherwise it's going to
be a very short lived
experience.
And that goes back to what I was
saying earlier about
understanding the the landscape,
looking at the sales
fundamentals, looking at
formats, looking at you know if
you're going to do a promotion
for example or some some sort of
promotional mechanic.
How can you attract the the
interest of the consumer,
maintain that attention, try to
create some sort of emotional
reaction desire before you get
them to take an action to to
convert back to a sale.
And again most new brands in
travel retail, they may not
understand to get the
opportunity straight away to to
have a promotion in store
because of the core than
everything else relating to it.
But there's other things that
you can do.
For example, one of the things
I've always been a big advocate
before has been how can you
touch on the kind of gifting
element because that's such an
important driver for the
consumer.
So the the small packs, you
know, the kind of three, three
by five scale packs, for
example.
I've always been a big advocate
for them because in my mind the
way I look at them is they are
paid for trial, they're paid for
liquid to lips even if I make
less margin on those products.
And I'm quite happy to do that
because effectively our
consumers paying to trial a
range of my products which
hopefully they will then buy
either in domestic or in a
travel retail shop.
On the promotion side, one of
the one of the best examples I
see of our promotional
activation based on what I said
about attracts annotation,
creating desired etcetera was
Hendricks and again simplicity
sometimes is key, right.
And Hendricks was always very
clear in terms what they were
and what they were not.
And I remember an activation we
did in Hamburg Airport, I think
it was in Germany, where we had
someone dressed up in a lab coat
and we had this clear helmet
almost.
The idea was that a consumer
would put their head inside this
clear Perspex helmet sort of
thing, and then they would be
able to experience gin and tonic
or Hendrick and tonic in a vapor
format.
So an unusual way of experience,
Hendrick and Tonic.
Now to an extent you could argue
and maybe a little bit of a
gimmick, but it certainly was
unusual.
It certainly drew interest and
as you put the consumer through
that experience, obviously
people saw that.
So that attracted the things
from which Ben then brought more
people on to you.
And as you engage with them, he
gave you the opportunity to a
tell them a little bit more
about the brand and what it
stood for.
But then equally get them to
sample the product and and as
I've always said, liquid to
ellipses paramount and that
inevitably helped us to drive
sales.
Absolutely, absolutely.
So that's fantastic.
So that's a nice way to wrap it
up.
It was a, it was a fantastic
conversation.
We touched on many different
things and so tell us how.
How can people find you and how
can they reach out to you on all
the different elements of your
knowledge and support?
I mean, the easiest way for
people to find me is through my
website insidethecask.com.
It's something that I started a
few years back as a way to share
information that I was
interested in back with others.
I also post jobs there.
In the drinks industry I tried
to post about 100 jobs a month,
typically tends to be higher
than that.
And again, that's just as a way
to to help others either change
jobs or come into the industry
that we love so much.
So it's really a service.
If you like that I try to to
give back, but through the
website you can also contact me
if you're looking to work with
me on a project or on a
consultancy basis, whether
that's to do with travel, retail
or domestic.
I've I've been working as a
consultant now for a for a few
years and I just love the
diversity of projects that I've
been able to get involved with.
And a lot of that is obviously
drawing on the experience that
I've had over the years both in
the UK internationally and
across off trade, on trade
prestige and travel retail.
Fantastic.
So thanks.
Thanks a lot Andre and speak
soon.
It was a pleasure to have you.
No, no.
Thank you very much for having
me, Chris.
Really appreciated it.
Ciao.
Ciao.
That's all for today.
Remember that this is a two-part
episode, 42 and 43.
If you enjoyed it, please rate
it, comment and share it with
friends, and come back next week
for more insights about building
brands from The Bottom U.