ISRAEL. In big breaking news, a partnership between JR/Duty Free and Gebr Heinemann has been awarded the ten-year duty free concession at Tel Aviv Ben Gurion Airport terminals 1 and 3, The Moodie Davitt Report can reveal.
The two-terminal contract covers liquor, tobacco, perfumes, cosmetics and confectionery. As reported, Israel Airports Authority (IAA) issued the tender on 5 June, allowing interested parties to make offers on either or both the T1 and T3 contracts.
The result, which was confirmed shortly after bids closed, brings together for the first time two of travel retail’s leading players (see table below), both family held.
Garry Stock, Chairman, Duty Free of the incumbent retailer James Richardson, said: “It has always been our intention to stay at Ben Gurion Airport. James Richardson has a long and proud history in Israel and we are thrilled to be extending this in the future.”
On the partnership he said: “Heinemann will bring know-how gained from its presence in many European and other markets to further strengthen the JR Israel business.”
Gebr Heinemann Executive Director Raoul Spanger said: “No-one knows the Israeli travel consumer better than James Richardson, and we are very happy and confident that together we can further develop the business at Ben Gurion.”
Both partners indicated that they are looking forward to further improving the highly regarded duty free experience enjoyed by Israeli and tourist travellers at Ben Gurion. “The objective will be even better value and an enhanced shopping experience,” the companies said in a statement.
The news caps a highly successful few days for JR/Duty Free, coming hot on the heels of its winning bid for the ten-year duty free contract at the new Eilat Ilan and Assaf Ramon Airport, expected to open in early 2018.
The two-terminal tender at Ben Gurion was prompted by the full re-opening of T1 to international departing (not arriving) passengers on 19 June this year. The T1 change of status dilutes traffic at the existing international T3 (around 1.5 million of the airport’s current 9 million departing international passengers will fly from T1 but will arrive back at T3.) Passengers flying from T1 will be able to order their duty free goods on departure and pick-up on arrival at T3.
Shared family values
The combination of global powerhouse Gebr Heinemann with the well-regarded Ben Gurion incumbent JR/Duty Free was always going to be a formidable contender for the contract. Heinemann was a desperately close runner-up to JR last time around. This time it will share the spoils of victory.
Announcing the alliance with Gebr Heinemann in February this year, Garry Stock said: “Heinemann share our family values and culture. They are the ideal partner with whom JR can continue to develop the duty free business in Israel.”
Raoul Spanger said at the time: “JR is by far the most knowledgeable and experienced duty free operator in the Israel market. What they have achieved is highly respected within the industry.”
Today’s news emphatically underlines both observations. A powerful new industry combination is born.
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