On location at the ASUTIL Conference in Lima: Day two sessions in review

The 2025 ASUTIL Conference is taking place in Lima, Peru this week from 3 to 6 June. This year the long-established regional event is themed Nexus, symbolising the convergence of innovation, opportunity and collaboration in duty-free and travel retail.

This year’s conference unfolds against a transformative backdrop: the grand opening of Lima’s new Jorge Chávez International Airport terminal.

The Moodie Davitt Report is on location for the event, ably represented by Publisher Irene Revilla and much-respected travel retail journalist John Gallagher. We will be bringing you regular updates over coming days.

5 JUNE

Day Two round-up

After a busy Thursday morning of networking between retailers and suppliers and operators, the focus switched back to the main conference room after lunch.

Delegates heard an upbeat presentation from Petrina Kho, recently appointed as L’Oréal Managing Director Travel Retail Americas. Kho said the growth opportunities in Latin America for the beauty business – the largest category in regional travel retail – are “immense”.

She added, “If you are able to dream, you will be able to transform the business and make positive changes. Increasing air travel in Latin America will allow companies to keep growing.”

Gen Z travellers in Latin America are the most important target group and they will lead the growth of the beauty sector by 2028, Kho noted. Gen Z will represent 30% of travellers and their spending will increase by +70% over the next five years.

According to L’Oréal, 47% of travellers are looking for immersive experiences. 75% of Gen Z and Millennials are using social media as search engines to plan trips and plan purchases.

The wellness segment is growing in importance and she confirmed that 54% of consumers will use preventive services and products at least once per week, ensuring category growth. With its strong portfolio of brands at different price points, L’Oréal will be at the forefront of this revolution, according to Kho.

She repeated the view expressed by senior L’Oréal executives that the travel retail Trinity can now be seen as a ‘pentarchy’, featuring multi-industry collaborations between key stakeholders: brands, airports, retailers, airlines and media partners.

Kho underlined recent impressive results at Hamad International Airport where conversion rates through compelling campaigns have increased by more than +40%. Kho hopes to repeat the performance at Buenos Aires Ezeiza Airport later this month with the Avolta beauty team, she said. Here, American Airlines and Aerolineas Argentinas will also be involved along with AI DJs at the point of sale to create more interest with customers in departures stores.

Later, Montevideo-based consultant John Moor addressed what he called ‘the age of global disorder.’ Moor stated that the immediate future and the short-term business climate had become uncertain since Donald Trump had been elected for his second term as US President.

He noted how tensions between China, USA and Russia could disrupt business and how uncertainty could affect normal business planning, while increased military spending worldwide would increase debt levels in all major economies.

Touching on the current tariff war between China and USA. he argued that the outcome was uncertain but said increased protectionism by all countries would lead to sliding economic growth and an increased risk of higher inflation.

However, he said, the current instability could also lead to opportunities for some Latin American economies if the governments of Argentina, Brazil and Mexico adopt a pragmatic approach that puts to good use their natural resources and manufacturing capacity.

Argentine economist Carlos Melconian (below) confirmed Moor’s assertion that the world economy was passing through “a strange and uncertain panorama” that has led to low economic growth throughout the world.

Lower than normal raw material prices had also led to lower rates of economic growth in most of Latin America. Argentina, he said, is still suffering from many years of economic mismanagement and although current president Milei had managed to lower inflation, the annual figure was still too high. If Milei is successful in the mid-term elections in October, he will look to restore foreign exchange reserves, lower country risk levels and return to the international debt market.

Milei’s recent deal with the IMF is very much a stop-gap solution, said Melconian, but Argentina needs to grow US Dollar reserves to be able to compete with its Brazilian neighbour which has a much more competitive exchange rate.

Brazil is in a more favourable situation. Higher foreign exchange reserves have allowed the country to operate with a favourable exchange rate but higher interest rates have held back economic growth in recent months.

Melconian hinted that the worst of the current commercial war between USA and China could be over. Relaxation is still not possible for most Latin American economies but most countries should be looking for strategies to recover lost economic growth over the next few months and the priority should be to adapt, grow and recover in 2026.

m1nd-set Peter Mohn offered a number of data points on the market, highlighting that 257 million international trips were forecast for Latin America in 2025, +19% ahead of the pre-pandemic 2019 figure.

In a similar fashion to other speakers at the conference, Mohn pointed out that Gen Z power to purchase in travel retail was increasing and this group is likely to choose brands that are in line with their core values, around sustainability and authenticity.

The final session of the conference concentrated on innovation in border travel retail, with Avolta, Duty Free Americas (DFA) Uruguay, Neutral by Luryx (Top Brands) and Sineriz Duty Free communicating their latest developments and planned projects to delegates.

Avolta Brazil CEO Gustavo Fagundes confirmed the company’s latest opening in Foz do Iguacu and underlined the company’s commitment to the border business. The new store, said Fagundes, would provide a high-quality shopping experience for border shoppers.

DFA Uruguay CEO Andres Mendelsohn spoke about the latest developments of the company’s stores located in the six border cities where duty-free shopping is permitted.

Mendelsohn highlighted logistical and technological developments to improve deliveries to stores and avoid out-of-stock situations. He added that the company’s 10,500sq m Panda Duty Store, opened in 2018, continued to grow and he highlighted the importance of the store to the local community in Rio Branco.

Mendelsohn also indicated continued expansion and development throughout the store network, pinpointing sales increases at the Bella Union store as a result of increased numbers of Argentine shoppers who stop in the city on their way to Brazil.

Neutral by Luryx CEO Marcelo Montico shared details of the company’s +33% sales growth in Uruguay in the first five months of 2025. This followed cumulative annual growth of +24% in the last five years since it was acquired by Top Brands International. The latest big plan, as reported, is for a 2,600sq m Luryx store in Foz do Iguacu. Located in the Dreams Park retail and entertainment theme park, Montico promised visitors and shoppers an unrivalled shopping experience when the store opens in Q3 this year.

Rafael Parodi, Business Development Director at Sineriz, the biggest travel retailer in Rivera, shared the latest developments at the company’s 10,000sq m flagship store. New concepts in include a New Wine Experience shop-in-shop plus a Fragrance Experience under a collaboration with Buenos Aires-based fragrance specialist Edition Privee. Both concepts will be introduced in the second half of this year.

4 JUNE

Day One round-up

Following a warm welcome from ASUTIL Secretary General Carlos Loaiza, the 2025 conference got underway on Wednesday morning in overcast Lima. Loaiza thanked delegates and sponsors for supporting this year’s conference in such large numbers.

ASUTIL President Enrique Urioste then followed with an upbeat overview on the state of the duty-free business in Latin America.

With 320 attendees present in the Swissotel Lima, Urioste commented that more than 70 buyers were present, pinpointing one of the reasons for the continued success of the conference.

Urioste said that Latin American duty-free shows great potential with passenger traffic expected to double over the next 25 years. He advised that domestic and international traffic had increased by +7.5% and +9.3%, respectively, in the first quarter of the year and this had led to an estimated +12.6% growth in duty-free business on a like-for-like basis.

He added that the uncertainty and volatility in the world business environment as a result of increased tariffs could be beneficial for the travel retail segment as many products would now be considerably cheaper than in the domestic market.

Following the success of Argentina President Javier Milei’s economic policies to control inflation and stabilise the exchange rate of the Peso, Urioste highlighted that regional travel from Argentina had boomed, especially to Chile, Brazil, Colombia and Uruguay. As a result, store operators throughout the region had recorded strong sales in Q1.

The morning’s keynote speaker was Lagardère Travel Retail Chairman and CEO Dag Rasmussen, who highlighted the Paris-based company’s growth over the last few years with sales now reaching €7.8 billion in 51 countries. Travel essentials, mainly under the Relay brand, contributes 39% of total revenues, with duty free and fashion accounting for 38% and food & beverage sales at 23%.

Rasmussen commented on the group’s growth in Latin America, which commenced with the company taking over the management of the duty-free concession at Lima Jorge Chavez Airport in January 2022. In March that year, the company added five new food & beverage outlets at the Santiago de Chile Arturo Merino Benitez Airport and further outlets opened at the same airport in 2023 and 2024.

The main highlight of the company’s Latin American development came this month with the launch of the new terminal in Lima. Rasmussen confirmed that the opening of arrivals and departures duty-free stores totalling 4,000sq m and a new duty-paid store in domestic departures, all under the Aelia Duty Free fascia, had gone smoothly. The company also added food & beverage outlets covering 3,300sq m with an extensive range of the best of Peruvian cuisine.

As a result of the recent expansion, the number of employees at Lagardère Travel Retail Peru will grow to more than 800 this year, which compares with a total of 180 when the company started operations in 2023. Rasmussen also highlighted that more than 100 young employees would be hired through Forge, a local NGO dedicated to supporting the employment of young people from disadvantaged areas in the city.

Rasmussen commented that the company’s business in Peru illustrates the core principles that will guide its strategy over the next few years. Adaptability, local empowerment and sense of place and trust – all these principles are interlinked and aid Lagardère to build meaningful relationships, wherever they operate, he said.

He underlined that the company’s clear policy of creating a sense of place had been crucial to the success in Lima with the incorporation of Peruvian products in the product selection. Younger generations have new expectations, he said, and companies need to adapt to offer a product selection that appeals to these consumers. Adaptability means the right products, the right brands, at the right price and in the right place.

Following Rasmussen’s address, Loaiza and Urioste returned to the stage to announce the recipient of the ASUTIL Person of the Year award. This was presented to IAADFS President and CEO Michael Payne, recognised for his long collaboration with ASUTIL over the last two decades.

Lima Airport Partners CEO Juan José Salmon and Chief Commercial Officer Norbert Onkelbach gave the audience an in-depth view of the new terminal and the work involved in making Lima one of the most important hubs in airport connectivity in Latin America.

LAP, 80% owned by Fraport, began operations in February 2001. Just over 24 years later, the company has completed its new 270,000sq m terminal which will allow the current level of traffic to grow from 24 million passengers a year to more than 40 million.

The new single passenger terminal, three times larger than its predecessor, the new control tower and the second runway will take the company to the next stage of development to create the best experience for travellers and all airport users, they said. With the best customer experience, dwell time in an attractive atmosphere means that retail revenues will rise.

LAP’s recognition of a complete service culture along with improvement of all services has enabled the transformation of the terminal to create the best possible customer experience, they said. Speciality retail, including alpaca, vicuna and fine Peruvian jewellery, brings high-quality Peruvian products to a new audience and complements an extensive duty-free offer from Lagardère Travel Retail.

m1nd-set CEO Peter Mohn chaired a panel on the latest trends in the liquor category in travel retail. Mohn advised that average spend on alcohol in Latin American duty-free had returned to pre-pandemic levels and although purchasing for gifting had declined, consumers were increasingly planning purchases for personal consumption.

Pernod Ricard General Manager Travel Retail Americas Greg Ford; Suntory Global Spirits Regional Director Americas, Global Travel Retail Nathan Ellingson; Diageo Brazil VP Sales Andre Muller; and Moët Hennessy VP Travel Retail Americas Yann Isambert offered valuable insights on recent developments in the wines & spirits category.

All panellists agreed that premiumisation was the main way to grow the category with emphasis on travel retail exclusives and creating activations to excite consumers.

Innovative ways to promote and attract people to the category were widely discussed with topics ranging from advertising via the Uber app to continuous education of purchasers using brand ambassadors. Recruiting new consumers and looking at how other categories are promoting to their target markets can help the sector be more creative with its promotional messages, speakers added.

In the closing session of the first day, Avolta Brazil CEO Gustavo Fagundes discussed ASUTIL’s work on advocacy, regulatory engagement and collaborative initiatives with Duty Free World Council (DFWC) President Sarah Branquinho and Ricardo Oliveira, External Senior Counsel to the DFWC.

Addressing current WHO-led threats to duty-free tobacco (view our latest story here), Branquinho warned that a potential ban on tobacco sales could lead health authorities to examine the future of alcohol and confectionery in particular.

Branquinho reminded delegates that tobacco shoppers tend to be high spenders and make purchases in several other categories. Branquinho and Oliveira commended ASUTIL on their actions to fight the threat. They recommended further actions to include South American Customs officials in their discussions as they undertake positive political action to defend any proposals to limit the sale of duty-free tobacco.

3 JUNE

Ahead of the sold-out ASUTIL Conference in Lima,  this week (3-6 June), ASUTIL Secretary-General Carlos Loaiza (right) shares insights with John Gallagher about  regional economic shifts and how the event continues to deliver real business value across Latin America. 

“We have a very loyal following from one year to the next – even though we change venues every year we get a great deal of repeat business. This is for a good reason.

“People think they get excellent value for what they pay. The conference speakers are always good, and the panels are relevant to both operators and suppliers. The atmosphere and networking possibilities are excellent. 

“Many people have built strong personal and professional friendships through the event, and this is one of the most valuable aspects the conference offers to all who participate. There is a deep sense of community.”

Building on the success of the Bogotá event in 2024, this year’s conference, titled Nexus, delves into evolving trends and challenges within the duty-free and travel retail sectors. The event aims to highlight Lima’s modern airport infrastructure as a key growth driver for the industry.

Loaiza adds, “Apart from the conference itself, we know that people do genuine business here. We have the right number of buyers who can write up orders, and we have the right suppliers with products that sell in Latin America.

“The worldwide geopolitical situation, with uncertainty about what is happening in commerce and whether we will see more or less tariffs, has augmented interest in Latin America as a safe area to do business with relatively few problems.”

Given the strong ticket sales this year and a long waiting list, we ask Loaiza whether ASUTIL is considering expanding the event.

Visiting delegates to ASUTIL 2025 will experience the spectacular new-look Lima Jorge Chávez International Airport. Pictured above and below are images from the wide-ranging Aelia Duty Free (Lagardère Travel Retail) shopping and food & beverage offer.

Loaiza responds, “We discussed this at our recent board meeting. We all agree that growth for the sake of growing is not our intention. If quality suffers and attendees cannot meet the people they want to see, the conference would be a failure.

“It is always a question of balance – we attract the right operators because they know they will meet the right suppliers; and suppliers know they will meet buyers. The balance is ideal. The objective now and for the future is to maintain our current size.

“The ASUTIL Conference is a unique event, and we want to keep that identity. We host all the leading airport operators and a wide selection of border shop operators from Uruguay and Brazil.”

Beyond the Conference

While the conference is an important event for the ASUTIL board, the organisation constantly monitors the market to identify ways they can support members and enhance their business operations.

“The international political panorama makes us pay greater attention to what is happening around the world,” says Loaiza. “The changing behaviour of each generation is always worth studying, and the way younger generations use travel retail has our operator and supplier members interested.”

Loaiza stresses the role operators play in their local communities, noting that ASUTIL’s operator members contribute significantly to regional economies, with many actively increasing employment in less developed border towns.

He says, “They are not only major contributors to the local economy through job creation but also by attracting shoppers to visit the borders; hotels and restaurants are busier as a result, improving the local economy.”

From its base in Montevideo, Uruguay, ASUTIL strives to defend the duty-free and travel retail business throughout Latin America.

Loaiza explains, “On a day-to-day basis ASUTIL maintains contact with regional governments to ensure that members’ interests are properly defended. We are constantly talking to governments to defend and, where possible, increase duty-free allowances.

“As consumption habits change, the average ticket tends to increase, and we are looking to increase allowances where possible to make sure shoppers can buy high-ticket items.”

Later this year, ASUTIL will renew contact with the recently elected Uruguayan government to ensure that the list of products eligible to be sold in border duty-free stores aligns with those available in their Brazilian counterparts. “A level playing field is good for everyone on both sides of the border,” says Loaiza.

He also observes that with the first half of the year almost over, ASUTIL operators are enjoying strong momentum, with revenues ahead of last year.

“The Argentine economy seems to be growing ahead of expectations with inflation now under control and the Peso stable against the US Dollar. Brazil has also had a good start to the year with strong GDP growth in the first quarter.

“It should be interesting to see if the government’s measures to hold back inflation will be effective and how they will affect private consumption.”