Page 66 - IAADFS Summit 2023 Special Edition

INSIDER

for these products resulting in a longer
recovery period to supply. Opportunities
now exist in this area as travel has opened
up and gaps have appeared from the larger
whisky distillers (though business travel
is unlikely to return to pre-pandemic
levels due to rise of online collaboration
software).
“It will be interesting to understand
the extent to which these gaps will remain
in 2023 as demand and supply normalizes
or whether the re-distributed allocated
older aged single malts will continue to be
exported to markets such as the Far East
where they can command higher prices,”
she adds.
Motta Internacional’s Attenza Duty Free’s liquor supply has been improving, says Motta
A brightening outlook for 2023 buyer Carlos Calvo.
Despite the ongoing supply challenges based travel retailer Motta Internacional, increasing exponentially.”
the duty free liquor business in the whose Attenza Duty Free store chain Calvo’s comments are typical of a
Americas is facing, it’s important to stress extends to over 40 locations at airports business moving in the right direction
both suppliers and retailers report strong and border stores in Panama, Ecuador, despite ongoing supply chain problems–
growth for last year and are upbeat about Nicaragua, El Salvador and Colombia. indeed the IWSR Drinks Market Analysis
business prospects for 2023. “Our liquor “Supply has been improving, so has revealed that duty free spirits sales by
business is performing very well overall as we are expecting a good 2023,” Calvo value in the Americas already reached pre-
airport traffic improves by the day,” says adds. “Scotch whisky has been driving pandemic levels in 2022 and are on course
Carlos Calvo, liquor buyer at Panama- the category, and tequila sales have been to match pre-COVID volumes by 2024.

Logistics provider WTDC reflects on supply-chain issues

Family-owned company WTDC
has been in the logistics business for 46
years. The Miami-based business became
PortMiami’s first operating Foreign Trade
Zone (FTZ) in 2012. Since 2006, the
company has been heavily involved in the
bonded warehousing and transportation of
drinks to duty free retailers in the Americas.
During the pandemic, WTDC
president & CEO Sean P. Gazitúa says
ocean freight prices peaked at almost 10
times their normal pre-pandemic levels.
Pre-COVID, to ship a product from China
to Miami might have cost around $2,000; Sean Gazitua, WTDC president & CEO
now that price was $20,000.
“It was insane,” says Gazitúa. “Not
only did the prices go up, the availability be cautious and to try to reduce costs on data entry all-day long. We provide a
of bookings was also an issue too. If I did wherever possible. boutique, specialized service.”
get the approved rate from my customer, WTDC is moving with the times. Sustainability is also becoming a
then I would contact the steamship line The logistics business is becoming more much more important aspect of WTDC’s
and I would say, ‘Get me two containers’ dependent on digital technology, according operations. The company now prepares
and I found out that they aren’t going to be to Gazitúa. “In the beginning, it was just an reports on carbon dioxide emissions for
available for two months. I needed a next- RF scanner, moving a pallet with a pallet customers, detailing steps the company is
week sailing.” ID from one location to another. Now with taking to lower its carbon footprint such as
Gazitúa says freight prices have now technology, we are trying to do electronic using electric forklifts, installing new LED
dropped and supply-chain bottlenecks data interface when our customers’ lights, new efficient air conditioners that
are easing. However, he says inflation systems and our systems communicate. use less electricity and installing a white
has caused some of his customers to Our customer service team is not focused roof to reflect the sun’s rays.

Summit of the Americas April 2023 66