Duty Free Dynamics (DFD) has taken its first steps into the confectionery category by striking distribution deals with Lindt, Haribo and Perfetti van Melle.
The partnerships underline the Americas travel retail specialist’s plans to extend its footprint in the channel.
Until now the regional distributor has focused on watches, electronics, travel gear, outdoor, sunglasses, footwear and toys.
To evaluate the possibility of moving into core categories, DFD conducted a market analysis, which determined that confectionery is “the one with the highest index of growth” and offers potentially high conversion rates at airport shops.
“Of all the traditional categories, confectionery is the one that continues to grow steadily, while the others are slowing down or becoming stagnated,” the company claimed [that claim might well be questioned by others -Ed].
DFD aims to move into confectionery with a portfolio of products to “cover all possible levels of demand”. Swiss chocolatier Lindt is regarded as a market leader in premium chocolate, it noted, while Haribo is known for its ‘gummie’ candy and Perfetti van Melle specialises in hard and chewable confectionery, led by Chupa Chups lollipops and Mentos mints.
The brands offer a “balanced portfolio that will cover all sorts of tastes”, DFD added.
DFD Business Developer – Brand Manager Confectionery David Ruiz noted that consumption motivations, which include indulgence, snacking and gifting, make confectionery “very attractive in terms of growth and profit” for DFD partners.
“The last years, the rapid growth of the confectionery category has led to an increase in the size of its retail footprint at the travel retail shops with a wide variety of products and strategic sale positionings. We are convinced that the business model we have assembled, as well as the partnership with top global brands and manufacturers such as Lindt, Haribo and Perfetti Van Melle, will be a great business opportunity for all of our partner operators,” he said.
Other DFD brands include Lego, L.O.L. Surprise!, Samsonite, American Tourister, Hydro Flask, Osprey, AfterShokz, Toms, Teva, Spy Optic, Oris, Frederique Constant, Junghans, Seiko, Guess watches and Timex.
