Food Reimagined – Visions for a vibrant category

Broaden the range of food to encourage consumer spend, ensure food & confectionery appeals to a new generation of travellers, create sense of place, lift the bar for innovation, and underline the category’s sustainability credentials.

These are some of the highlight messages and calls to action that have appeared in our Food Reimagined monthly column in partnership with Nestlé since November last year.

Over that time we have spoken to leading travel retailers that have proven themselves champions of food & confectionery and added their views on the role of the category and its future direction.

In this final edition in the series, we present a snapshot of each column, and we thank all those who have contributed to the continuing conversation about food & confectionery’s role within the travel retail offer.

Introducing the series

Food & confectionery can play a big role as the ‘antidote to apathy’ among many travelling shoppers and its role should be reappraised and championed as a sales and experience driver.

That was and remains a key message to industry partners from Nestlé International Travel Retail (NITR) as it strengthens its mission to make food the most purchased category in travel retail.

We introduced this series with the Nestlé strategy and key principles for the category, eloquently outlined at The Trinity Forum 2023 by NITR Head of Category Development Nicola Wells.

Championing local at Qatar Duty Free

On 12 December Qatar Duty Free (QDF) opened Souq Al Matar – dubbed a “groundbreaking twist on traditional Qatari heritage and hospitality”.

Souq Al Matar – matar being the Arabic word for airport – is a traditional Qatari Souq located in HIA’s North Node terminal, featuring seven shops and two restaurants.

Within the retail offer, food plays a central role through stores that offer local sweets and delicacies – complementing the wider international confectionery offer elsewhere in the core category stores.

The enhanced localisation of the shopping offer chimes strongly with NITR’s mission to make food the #1 most purchased category in travel retail, a drive promoted in this series of ‘Food Reimagined’ columns.

NITR’s VERSE growth model (see above) sits at the heart of its thinking about doubling the category in the decade ahead. Within this, a key principle that the brand owner is prompting is to ‘lead with local’.

Qatar Duty Free’s Souq Al Matar does that in a thrillingly effective and evocative way.

Click here for the full article from December 2023.

Dubai Duty Free on broadening the audience

Since Dubai Duty Free opened its doors just over 40 years ago, on 20 December 1983, food & confectionery has been a mainstay of the business. The category has been built around an engaging offer that attracts local, regional and international travellers, with strong promotional programmes and multi-buy offers blended with premiumisation and, increasingly, sense of place though local brands.

In our February edition, Senior Vice President Purchasing Sharon Beecham highlighted the focus today on the evolving purchasing habits of Gen Z and Millennial travellers.

Beecham commented: “There is anecdotal evidence that Gen Z and Millennials are less inclined to shop for sharing gifts compared to baby boomers, while they are more inclined towards self-indulgence, whether it is for an impulse or premium gift.

“Gen Z also likes to see more engagement from retailers, such as sampling activities, and to find exclusive launches, new flavours and something unique to take back as a memory from travel.

“In that sense, souvenir confectionery, premium gifts and indigenous sweets are of the utmost appeal to them. They are also tech-savvy, so having different payment options and self-checkouts is a plus.”

Of the key segments within the mix, Beecham said: “Sharing gift and informal gift segments represented the highest share of the confectionery pie in 2023, with 30% and 25% respectively. Although we have seen the informal gift and premium gift segments grow by around +30% each in 2023 compared to 2019, sharing gift growth has softened with a mere +7% increase during the same period.

“We have seen many brands introduce tablets and smaller snacking options in traditionally larger boxes or bags to cater to the emergence of Millennial and Gen Z travellers. This may, to a certain extent, cannibalise the sales of existing products, but it will also ensure that we do not miss out on those sales.”

Click here for the full article from February.

Lagardère Travel Retail and the great food opportunity

The role of food, and in particular fresh food, will be among the drivers of growth for the wider food, snacking and confectionery categories in the travel sector. So said Lagardère Travel Retail Vice President Foodservice Mélanie Guilldou in our March edition.

“I believe that the role food (and mainly fresh food) plays will be much more important than the one of confectionery.

“Customers are looking for more qualitative fresh food in travel retail, both in travel essentials stores but also in duty free. And they are ready to pay for quality. So it will definitely be a strong lever to increase the average ticket.”

Ospree Duty Free and the demand for something premium and different

“Food & confectionery is a promising growth area within our business. Its [revenue] share exceeds 10%, reflecting its strategic importance.”

So said Ospree Duty Free – the recently rebranded joint venture between Adani Airport Holdings and Flemingo Travel Retail that was known as Mumbai Travel Retail Private Limited – as it addressed the potential of this key category in our April eZine edition.

The company underlined recent positive results in this segment, adding that it “continues to explore opportunities for growth and innovation”.

Among the key consumer drivers at Mumbai International Airport and beyond is the search for something different, said Ospree.

“We’ve observed a strong trend among consumers to purchase exclusive confectionery products available only at travel retail channels. Additionally, with increasing disposable income, the demand for premium chocolates has positively impacted our average transaction value (ATV) and overall basket size.”

Luxury gifting is also playing an increasing role as a shopper dynamic.

“Our luxury confectionery range is particularly favoured as a premium gifting option by Gen X, Millennials and Gen Z. Their appreciation for quality and exclusivity aligns with our offerings.”

The retailer said that the category can help engage, inspire and boost conversion among a new generation of travellers.

“A growing segment of young consumers is gravitating toward healthier food options, particularly within the confectionery category. This shift reflects their awareness of wellbeing and a desire for products that align with their lifestyle choices.”

Click here for the full article from April.