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29/10/2014

TWE eyes $1 billion retail travel channel

IF Treasury Wine Estates (TWE) could entice window shoppers in duty-free stores and airport lounges to buy a bottle of wine, the company could lay claim to an expanded revenue pool of more than US$1 billion (A$1.13bn), according to reports in The Australian.

TWE has commissioned fresh research into the US$39 billion ($44.3bn) global travel retail market to better understand the motivation of travellers, and believes there are big opportunities in the rapidly growing retail channel.

A spokesperson for the company told The Australian that research, conducted in conjunction with Counter Intelligence Retail, showed that "while a high number of people were engaged in the wine category this was not translating to sales as they headed into the departure lounge or passed stores on their way to pick up their luggage".

A closer relationship with international travel retailers and suppliers could help grow sales by more than 50 per cent by 2019, representing turnover of US$3bn a year.

TWE has long had its eye on the global travel retail sector.

A partnership with Nuance Group, one of the world’s biggest travel retailers, saw the establishment of a stand-alone Penfolds store at Sydney airport.

Following the success of the store, TWE launched airport installations for its Penfolds 2014 Bins and premium wine ranges in Dubai, London, Amsterdam, Singapore and Hong Kong.

There are huge opportunities to grow wine sales in airports and with the establishment of a dedicated global travel retail team, TWE is well-positioned to tap into the market with its big brands such as Penfolds and Wolf Blass.

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