Step by step
German tobacco manufacturer Arnold André is prioritising the steady and selective expansion of its travel-retail business. David Davies finds out more
Possessing an extensive portfolio that includes such well-known product lines as Clubmaster and Vasco de Gama, Arnold André has more than 192 years’ experience of manufacturing cigars, cigarillos and related items.
Based in Bünde, Germany, the company enjoys an enviable profile on the international stage, with distribution in 80 countries and a long track record of expansion in Europe, Middle East, Asia, Russia and South America. Now, in what looks set to be a significant development, the company is planning to ramp up its presence in travel-retail through the targeting of selected outlets and the development of more products geared specifically towards the channel.
“Travel-retail may not seem so important to Arnold André in terms of volume- or value-share of the total business,” admits director sales Josef Wiese, “but from a qualitative point-of-view it is extremely important. Travel-retail is an important showcase for our brands, so it contributes to our image, and it is also the place where consumers are consciously looking for their brands, or for specialties they cannot find in their domestic market.”
Accordingly, Wiese describes expansion in travel retail as “a major priority”, and says that Arnold André is pursuing a “step-by step approach” that reflects – and seeks to build upon – its position in various domestic markets.
“We believe that an international domestic presence and development constitutes the first criteria to fulfil,” says Wiese. “Without any domestic consumer franchise, any presence in travel-retail would not make sense. In addition, we have also been developing new products exclusively targeting travel-retail so that we are more interesting as a partner for duty-free and travel-retail outlets.”
Exclusive products
Indeed, there is no denying that the company has been extremely active of late in developing special or exclusive products for travel-retail. Many of these efforts have centred upon the Vasco da Gama brand, which comprises a range of cigars manufactured using the most select tobaccos from the best cultivated areas of Sumatra, Brazil and Honduras. In recent times, the range has been expanded to include the small Clubmaster Mini Filter cigarillos and the aromatic Clubmaster Vanilla cigarillos.
“About two years ago, we introduced the Vasco da Gama Port Wine Cigar, which was developed in cooperation
with Rozès Port,” recalls Wiese. “Just recently, we launched Vasco da Gama Whisky, featuring cigars which have been aged in a room, together with a single malt Glenfarclas whisky. Looking at the success of both of these products and knowing that there are many other possible combinations, we surely intend to develop more special editions for travel-retail.”
Whatever form future special products may take, Arnold André will be placing a considerable emphasis on complementing them with high quality, eye-catching packaging.
“Travellers who buy in duty-free and travel-retail outlets often look for a beautiful present,” says Wiese. “Therefore we are developing some special packaging sizes and layouts that fit that purpose.”
Targets for growth
All in all, it’s a highly exciting time for Arnold André in travel-retail. The company is registering strong sales at Paris, Frankfurt and Munich airports, and is also doing well in South Africa, Malaysia and Istanbul. Looking forward, there are hopes of further expansion in Germany, Spain and Portgual, while in a reversal of its normal strategy of focusing on domestic retail first, Wiese says that the company regards travel-retail in Asia and the Americas “an an important door-opener for the domestic markets”.
Contemplating the rest of 2009, Wiese outlines the company’s desire to add “some more international airports to our list, as well as make some major breakthroughs in Asia and Latin America. For this reason, we will be attending – amongst other shows – the TFWA World Exhibition in Cannes. The products we will be highlighting are those with the highest potential for travel-retail outlets and which have already proven to be successful in existing outlets, namely Clubmaster, traditional cigar/cigarillo brand Handelsgold and Vasco da Gama."
With an impressive selection of products and a creditable willingness to develop bespoke offers according to specific market requirements, there is every chance that Arnold André will take several significant steps forward in travel-retail during the months ahead.
Top selling sticks
Arnold André’s best-selling cigars vary according to region, explains director sales Josef Wiese… “In Europe and Southern Africa we are very successful with Clubmaster; the Clubmaster Mini Vanilla product is particularly successful. In Asia, Middle East and Northern Africa, we have more success with our Handelsgold brand. In particular, the Handelsgold Gold Label and the range of Tip-Cigarillos are outselling all other products in our portfolio. For sure, this has to do with our positions in the local domestic markets. Finally, we have one brand that does extremely well globally, and that is Vasco da Gama.”
For more information on Arnold André products, please visit www.arnold-andre.de.
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