DFD introduces new cluster dedicated to confectionery
Duty Free Dynamics (DFD) is a state-of-the-art, regional distributor of global brands within the Americas’ travel retail channel. Until now, the company has been completely focused on non-traditional categories in travel retail, meaning all those outside the core categories, such as watches, electronics, travel gear, outdoor, sunglasses, footwear, toys, among others.
After the last five years of increased presence and solidification in its distribution channel, DFD chose to evaluate the possibility of taking first steps into traditional categories. The move relied on the synergy of its products and the state of its relationship with its partner operators.
In order to do this, DFD started by conducting a market analysis, which determined that the confectionery category is the one with the highest index of growth, with a conversion rate at airport shops that goes up to 69% according to CIR – Confectionery Shopper Review 2018. With consumption motivations such as snacking in existence, gifting is the most important one as gift items typically share the potential to turn browsers into buyers. Of all the traditional categories, confectionery is the one that continues to grow steadily, while the others are slowing down or becoming stagnated.
Guided by these facts, the company made the decision to launch this new category with a portfolio of products that covers all possible levels of demand. Accordingly, an agreement was sealed with Lindt, master Swiss chocolatier and market leader in premium chocolate on a global scale. Also joining this category line-up, DFD has incorporated Haribo, world renowned for its “gummi candy” and Perfetti Van Melle to cover the groupings of hard candy and chewable candy.
“At Duty Free Dynamics we work every day to deliver the best quality portfolio with the aim to grow alongside our strategic business partners and operators. Therefore, we are pleased to launch the confectionary category.
The fact that it has several consumption motivations (indulgence, snacking and gifting), makes it very attractive in terms of growth and profit for our partner operators.
The last few 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,” says David Ruiz, Business Developer – Brand Manager of Confectionery.