Dayalan Nayager, MD, Diageo Global Travel alongside the limited edition Johnnie Walker Blue Label Miami Edition, available to purchase at the DFA store at Miami International Airport.

In a quick-fire interview, TRBusiness talks to Dayalan Nayager, Managing Director, Diageo Global Travel (GT) about the alcoholic beverage giant’s travel retail priorities this year.

It’s now been almost two years since you took up your role as MD at Diageo GT. How have you seen the travel retail division develop during your tenure?

The past few years have been extremely busy for Diageo Global Travel. We have reshaped our business to better position ourselves in the future, relocating the head Office from Singapore to London with a new management team to oversee operations in our three key regions: Americas, Europe, Middle East & India, and APAC.

I’ve been inspired by the determination I’ve seen from our global travel team and I’m thrilled to be working with such a diverse team of vibrant, forward-thinking leaders. Our team is made up of people from over 40 nationalities, who all are very much in tune with the travel retail landscape and the shopper profile. This is important for us because the shopper is at the heart of Diageo Global Travel’s overall ambition. I see lots of potential within this team and I am confident there are great things ahead for the business.

Currency volatility, economic and political issues continue to challenge global travel retail, with the battle for space and pressure on margins intensifying. How is Diageo GT adapting?

When it comes to the current travel retail landscape and environment, geopolitical issues and currency fluctuations are obviously a challenge and we know that passenger demographics are changing. Nevertheless, travel retail remains a critically important channel for Diageo and we truly are excited by the opportunity it brings to the business.

You’ve spoken at length about your premiumisation and innovation strategy in the past. What’s the next step to develop this across the Diageo GT portfolio?

The biggest opportunity for growth is to drive penetration – penetration is key. To grasp this, we have redesigned our retail approach to better understand where and how to connect with the shopper throughout the journey. We continue to work closely with our partners to develop shopper propositions, engage in-store visibility, market activities and drive purchase triggers.

All this, to ultimately achieve our vision – that every global traveller has an engaging experience with our iconic brands.

When it comes to preparing for the future of travel retail,  we have identified the biggest opportunity for growth – driving penetration. We must adapt our strategy to tackle this matter. With that being said, we have identified several key areas of focus for the future of travel retail and our business. This includes growing the biggest spirits category in global travel, Scotch whisky.

A striking new retail design concept for Johnnie Walker unveiled at the World of Whiskies store at London Heathrow Airport Terminal 5 earlier this year in collaboration with Dufry.

A strong emphasis is being placed on IWSR travel retail category leader Johnnie Walker, with news of a new concept strategy rolling out at global airports beginning at LHR. How does JW feed into your plans this year?

With Johnnie Walker, currently ranked the leading spirit brand in travel retail and the no.1 Scotch whisky in the world (IWSR 2017, 2016 data), we are thrilled to start the roll out of our new retail concept at Heathrow’s Terminal 5.

The new design comes as part of a global roll out, with Diageo GT and Johnnie Walker set to invest heavily in travel retail. We are confident travellers will enjoy this new shopping experience that explores the history and pioneering spirit of this much-loved brand.

Having sold Bushmills, Diageo re-entered the Irish whiskey category in 2017 with the launch of Roe & Co. What was the reasoning behind the decision and how is it working out?

The Irish whiskey category is growing, which creates an exciting opportunity for the business. We have also seen growth in artisan and bespoke products, similar to the trend we see in the gin category. Roe & Co Irish Whiskey is a unique and very exclusive release created to reflect modern, contemporary luxury, in everything from pack to liquid.