TRBusiness writer Naomi sat met with Salcombe Distilling Co. Co-Founder and Director Angus Lugsdin in Cannes.

Salcombe Distilling Co. is targeting further growth in travel retail as the UK spirits company looks to build on its existing airport, cruise, ferry and rail presence, and take its 100% post-consumer recycled aluminium miniature format into the airline channel.

Speaking to TRBusiness at TFWA World Exhibition & Conference in Cannes, Co-Founder and Director Angus Lugsdin said travel retail is a “big and growing” part of the company’s strategy, with the show providing an opportunity to explore new markets and put its aluminium format in front of international buyers.

Salcombe currently generates around 95% of its business in the UK, but is looking to grow its export and travel retail operations in parallel. Within UK travel retail, the company works with Avolta and Lagardère Travel Retail, and has a presence across most major airports outside Scotland. It also works with Brittany Ferries and has a partnership with P&O Cruises, where it is the official gin partner and has created distilleries at sea aboard Iona and Arvia.

International expansion is now on the agenda. The company recently launched domestically in Hong Kong and sees potential to complement this with a future travel retail presence, while meetings in Cannes have also opened conversations around the Middle East. “For travel retail, we’ll kind of take it as it comes in the market,” Lugsdin said. “It’s more about the brand positioning and the stores we’d be in.”

A key focus at TFWA Cannes has been Salcombe’s aluminium miniatures, introduced just over a year ago as a replacement for its miniature glass bottles. Made using 100% post-consumer recycled aluminium, the format weighs less than half as much as its glass equivalent, which Lugsdin believes makes it particularly relevant for airlines.

The switch initially met with some consumer resistance because Salcombe’s previous glass miniatures were exact replicas of its full-size bottles, and were a hit with consumers. Lugsdin said perceptions have started to change, however, as consumers understand the reasoning behind the new format. “As soon we you say why we’ve gone down this route, people really get on board,” he said. “And they still look great.”

Salcombe’s aluminium miniatures were introduced just over a year ago as a replacement for its miniature glass bottles.

The first 12 months have also highlighted the commercial realities surrounding more sustainable formats. Lugsdin admitted he had initially expected airline sustainability targets to make buyers more willing to absorb a small price premium, however that didn’t seem to be the case.  “Companies really want to take them on board, but they don’t want to pay any more,” he said. As such, the aluminium format, which was slightly more expensive than glass a year ago, is now comparable in cost, according to Lugsdin. He expects it could ultimately become 5-10% cheaper as adoption and production volumes increase.

The miniatures have already secured a place aboard GWR’s Pullman dining service, and a version has been used across the P&O Cruises fleet. Salcombe is now pursuing airline opportunities, with Lugsdin reporting increased interest from aviation suppliers during TFWA Cannes. “At the point we win an airline tender, which we wouldn’t have been able to win with glass miniatures, then I feel like it justified making that decision to switch to aluminium,” he said.

Salcombe is available in UK travel retail through Avolta and Lagardère Travel Retail.

Alongside distribution growth, Salcombe plans to increase sampling and activations in travel retail. The brand has staged bar takeovers at UK airports including Heathrow and Bristol, with Lugsdin estimating conversion rates of around 50% when travellers taste its products. “We know we have a very high conversion rate if we can get liquid on lips,” he said. “It’s doing more of that, getting our products out there in front of consumers, getting them to try in the airports.”

Gifting is another important part of Salcombe’s airport business, with more than half of its airport sales currently purchased as gifts. Lugsdin believes the brand’s coastal identity and packaging give it a proposition that can travel beyond its UK origins.

New London Light is Salcombe’s collection of contemporary non-alcoholic spirits and aperitifs.

While gin has faced pressure in travel retail as retailers allocate more space to categories such as tequila, Lugsdin said Salcombe is continuing to gain share. “Gins are a hard sector in travel retail,” he said. “We’re doing really well. We’re bucking the trend significantly in our sales. But in terms of the shelf space that the category has been given, it is shrinking a bit.”

For Salcombe, he sees that consolidation as a potential opportunity: “If we’re gaining market share and there are fewer players out there, then it makes us shine even brighter.”

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