Page 29 - Special Issue Asutil Conference 2025

INSIDER

Essence Corp’s animation for Versace Eros Energy took over the windows at UltraFemme in Mexico in April.

One on One with Essence Corp VP Antoine Bona
Parsing the Americas fragrance landscape

With the insecurity plaguing “But our customers from North are driving sales also in sister airports, like
businesses all over the world from U.S. America are feeling it. After some tariffs Uruguay and Chile. The business on the
President Donald Trump’s on-again-off- were implemented in Mexico and Canada ferries between Uruguay and Argentina is
again tariffs and the resulting economic at the beginning of the year, we saw a doing well. The Uruguayan borders that
uncertainties, Travel Markets Insider sat slowdown in those markets. Canada is the were driven by Argentinians did really
down with Essence Corp Vice President most impacted, and we saw a slowdown well, especially during the summer months.
Antoine Bona to discuss the impact on in Mexico, just like there is in the U.S. We also see good numbers coming out of
the perfume and beauty markets in the domestic market,” observed Bona. Colombia. So overall, it was a strong first
Americas. “There’s just a lot of uncertainty, quarter for LATAM,” he said.
As a leading distributor of fine especially regarding price increases. A lot Bona reports that business is also
fragrances and cosmetics for duty free of brands are announcing price increases, good in Brazil, which was challenged by a
and travel retail across the Americas but not all have defined their strategy, as weaker exchange rate.
and Caribbean markets, Essence Corp everybody would like to see what happens. “The rate has been stable over the
is experiencing the fallout to the current In the U.S., consumers are aware of tariffs last six months, and has even gone down
situation first-hand. and the potential of price increases. It’s a little. Brazil sales at the airport are doing
“Overall, there’s a lot of uncertainty constantly in the news. So, consumers in well. The business at the borders has been
from both operators and consumers North America are spending consciously to a little less strong than at the airports, but
regarding tariffs, although less so in South anticipate for higher costs coming.” with new price increases in the domestic
America,” said Bona. While Essence Corp’s customers are market in Brazil based on the new
not showing signs of panic, the uncertainty exchange rates, shoppers are starting to see
has them reducing inventory coverage savings again on the borders, which wasn’t
affecting sales, said Bona. the case earlier,” he explained.
“We are seeing a softening in retail. Looking at individual operators and
People are still traveling -- anybody who segments, Bona points out London Supply,
has committed to a trip, obviously still goes the major Argentine operator in Foz de
on the trip—but maybe is spending less.” Iguazu.
“London Supply, which was closed for
The Latin America impact quite a bit under Argentina’s strong COVID
Bona notes that so far, they are seeing restrictions, opened extremely strong after
less of an impact in South America, which the pandemic, stronger than any other
is showing surprising strength. Argentinian operator. Then they struggled
“In South America, we’re seeing very last year because of the exchange rate fixing,
Antoine Bona, strong trends out of Argentina, which is but now their trend is way up again. This is
Essence Corp VP of Sales really driving sales. Argentine passengers similar to what we see with Avota Argentina.

29 June 2025 ASUTIL Special Issue