One voice: DFWC regulatory and educational initiatives gain momentum

INTERNATIONAL. The Duty Free World Council (DFWC) last week updated travel retail media on initiatives it has been working on over the past year, including key informational, educational and regulatory developments.

At the briefing held during the Duty Free & Travel Retail Summit of the Americas, DFWC President Frank O’Connell previewed a new study focusing on the Americas.

The Economic Impact of Duty Free and Travel Retail in the Americas study (which will be finalised in coming weeks), is part of a series of economic impact studies conducted by DFWC. Preliminary details from the report were presented during the Executive Conference session at the Summit on Wednesday 21 March.

Underlining travel retail’s social, employment and GDP contributions to national and regional economies is vital for dialogue with governments, said O’Connell. However, the association continues to be faced with a reluctance from the industry to share information.

The Americas study follows a similar European edition revealed in March 2016. A counterpart study on travel retail in Asia Pacific is currently being prepared, he revealed.

The industry is still reluctant to share information that could be important to conduct dialogue with governments, says DFWC President Frank O’Connell

DFWC Academy

O’Connel provided an update on the DFWC Academy. The association has created a set of professional standards for frontline retail & promotional staff, as previously reported.

The standards, which have been subject to an exhaustive consultation process with an industry working group, will form the foundation of a higher education diploma or degree. These include supervisory and management positions and additional product category specialisms.

The DFWC’s course has already received academic accreditation from the Dublin Institute of Technology, which boasts Europe’s largest retailing school . The association expects to launch the course officially in autumn.

Participants in the programme will gain European Credit Transfer Points, which are recognised on the continent and in academic institutions around the world. DFWC will also provide online mentoring and tutoring as part of the Academy.

Code of conduct

Last year, DFWC developed a global Code of Conduct for the sale of alcohol in duty free and travel retail in response to media criticism (mainly in the UK) regarding disruptive behaviour in airports.

Travel retail associations around the globe, including APTRA and ETRC, have signed up to the Code, as have over 80 industry suppliers and retailers.

“It is an important development that allows us to stand up to criticism. It has already proved to be important when working with the EU Health Forum,” said O’Connell.

“It shows that we recognise there is a misuse of alcohol by individuals, but we are a responsible group of retailers.”

DFWC plans to adapt the APTRA Responsible Retail Training Programme (RRTP) for global use. The programme includes a module on how to handle irresponsible and unruly passengers.

“[In the UK] there is already close cooperation between all the groups at the airport – from retail to food & beverage – in trying to control drinking. We are building a coalition driven by UKTRF,” he added.

WHO Illicit trade protocol 

Finally, O’Connell marked out the World Health Organization’s (WHO) Protocol to Eliminate Illicit Trade in Tobacco Products as a significant challenge for the travel retail channel.

DFWC has held several industry workshops, including at January’s MEADFA Conference in Dubai, to educate the trade highlight the need for action.

The WHO is readying a study to ascertain the extent to which duty free contributes to illicit trade. DFWC argues the move is part of WHO’s ultimate mission to abolish duty free sales of tobacco. The council has called on the industry to ramp up its efforts in convincing regulators that duty free is a legitimate and responsible business.

“This offers us the opportunity to differentiate duty free and travel retail from illicit trade and put clear water between us and other groups. As an industry we can show we have a highly regulated and controlled supply chain,” said O’Connell.

DFWC has reached out to the World Customs Organization, a United Nations agency, as it prepares a common global industry paper to help governments understand the difference between the travel retail channel and other groups that may engage in illicit trade.

“[We will take] a common position – the core message of which is that the industry speaks as one voice with one message,” he said.

The DFWC’s coordinated programme is underway and it is talking to countries that have ratified the Protocol. The protocol requires 40 Parties to take effect and it currently has 35, plus the European Union. The deadline is 2 July 2018 and if the 40 signatories are reached, the first Meeting of Parties (MOP1) will take place in October.

Food & Beverage The Magazine eZine