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The DFNI Scandinavian and Baltic Conference Emerging threats to duty free and travel retail Keith Spinks Secretary Gen

The DFNI Scandinavian and Baltic Conference Emerging threats to duty free and travel retail Keith Spinks Secretary General ETRC Riga, 09 November 2010. Protecting Industry Integrity. Reputable, Responsible Companies World Leaders in Retail Selling High Quality Products Top Tier Brands.

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The DFNI Scandinavian and Baltic Conference Emerging threats to duty free and travel retail Keith Spinks Secretary Gen

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  1. The DFNI Scandinavian and Baltic ConferenceEmerging threats to duty free and travel retailKeith Spinks Secretary General ETRC Riga, 09 November 2010

  2. Protecting Industry Integrity • Reputable, Responsible Companies • World Leaders in Retail • Selling High Quality Products • Top Tier Brands

  3. Model Challenged • WHO Action • Government Action • Individual Airlines Action • Security Restrictions

  4. Airport Security LAGs • Restrictions on transfer passengers • Liquids, Aerosols and Gels • Lifting restrictions on transfer passengers April 2011 • Lifting all restrictions on LAGS in hand luggage from April 2013 • Challenge in communicating to traveller

  5. One Bag Cabin Rule • Initiative by low cost airlines • Limits all passengers to 1 carry on bag • Dangerous precedent for other airlines • Creates consumer confusion • Up to 40% drop in sales • Possible EU political solution

  6. Tobacco Display Bans • Ireland – sales down 35% • European Commission consultation on Review of Tobacco Products Directive • EU Display ban incoming? • Concerted industry action needed

  7. Special conditions for duty free & travel retail • Canada • Mauritius • Poland • The United Kingdom • Government recognised unique nature of duty free retailing at airports • Tobacco Display Areas

  8. WHO FCTC • Abolition of Duty Free a long term target • Protocol on Illicit Trade • Price and Taxation Policies Report • Ongoing challenge to duty free tobacco • Avoid campaign fatigue

  9. Illicit Trade Protocol • Restatement of right to ban duty free • Restriction of inbound allowances • Continued pressure from some States and NGOs to ban duty free • WHO Uruguay meeting to agree next steps

  10. Price and Taxation • Threat of a total ban or further restriction on duty free sales of tobacco products • No decision at WHO meeting in Uruguay in November • Decision to be taken on next steps

  11. Passenger Confusion • Patchwork of Rules and Regulations • Where to buy, what to buy, will it be confiscated? • Confused Consumers Don’t Buy

  12. Emerging Solutions • Developments demonstrate there are ways forwards • Meeting the challenges • Maintaining the integrity of the duty free & travel retail industry

  13. Espace Voyageur • Unique Sales Channel • Multiple requirements for product labelling • Display restrictions on domestic market can affect travel retail • EU Single Market Act by 2012

  14. Cooperation • A Unified Industry - Partnerships • A Vision for the future of the industry • At the heart of international travel • The vital role of duty free & travel retail

  15. Questions or Comments Thank you

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