The final panel session of the first day concerned sustainability within the travel retail industry.

The focus of the second – and final – panel session of day one of the TR Consumer Forum was on the role played by actors across the value chain – landlords, operators, brands – in responding to increasing demand for sustainable solutions to ensure long-termism in the concessions model. 

The panel consisted of Clara Susset, Chief Operating Officer at m1nd-set; Shruti Ahuja, Head of Sustainability (APAC & EEME) and Safety (EEME) for SSP; Nuno Amaral, Chief Operations and Business Development Officer for ARI; Nicola Wells, Head of Category Development for Nestlé International Travel Retail; and Eugene Barry, Chief Commercial Officer at Dubai Airports.

m1nd-set research

Clara Susset, Chief Operating Officer at m1nd-set, detailed interesting trends in sustainability which will have a big impact on the direction the industry takes when tackling these holistic issues.”TR shoppers care about sustainability, but it’s not top of mind for them.

From our research we see they need cues to really understand what the brand is doing in that space. We see an overwhelming preference for dedicated spaces to sustainably-focused products, such as confectionery, beauty, alcohol, etc,” noted Susset.

Susset said she has seen a particular challenge with the younger travellers; she referenced a lecture she gave recently whereby she was astonished by how skeptical the students at her lecture were over the sustainability credentials of key players within travel retail.

“One of the biggest concerns for consumers is ethical sourcing, and focused primarily on a solo/group contribution to the environmental damage. European consumers are more concerned about sustainability, but also less easy to convince about a product’s sustainability credits,” she said, adding: “Asia is a positive region insofar as there has been a massive shift in terms of attitude.”

ESG here to stay

One of the key points which emerged from the panel discussion was a need for focused and broad co-operation between the various stakeholders in effectively communicating sustainability initiatives at the shop-floor level.

Margin call

Philipp Ahrens Senior VP, Center Management for Vienna Airport, commented on the F&B offer at Vienna Airport: “We’re trying to invest in the food court ourselves. There will be a tender coming up, and hoping also to inspire local planners, and want the materials to ave a reflection on the region, on the Austrian lifestyle. one has to think beyond just plastic and reusable cutlery.

Legislation and co-operation

Ahuja echoed the sentiments of Amaral: “ESG is a pre-requisite, it is expected of you. Nowadays we approach this with the idea of a lot CSR activity.

At the end of the day our company is a food company, so we need to find solutions for our supply chain, reduce carbon emissions, and it helps us communicate to consumers what they wanna choose from.”

On the responsibility of brands and operators in communicating their sustainability goals and strategies to consumers, Ahuja said: “Explain it in clear terms, make it super simple. 60-65% sales was from low-carbon food offers following a campaign to show consumers the numbers about where and how our product was sourced. It’s all about taking the conversation to the consumer.”

Speaking to the need for co-operation within the industry, Ahuja noted: “Airports are driving the conversation, but there is a lack of cohesive legislation around this. It should be awake-up for us sitting here in this room.”

Data compiled by m1nd-set showed younger travellers were increasingly skeptical of sustainability claims made by large suppliers especially.

“One of the challenges we see is a diversity of legislation which can come very quickly, without allowing for the relevant sustainable processes to be put in place, said Wells, who added: “It’s about having an ongoing dialogue about sustainability between stakeholders, understanding from a brand point of view what the airport needs, and it needs a holistic approach.

Thinking longer-term about brand activations and fixtures, dedicates spaces are needed where we can communicate to our consumer, because if we say nothing, they assume we’re doing nothing.”

Wells then talked about the challenges Nestlé has faced in terms of the court of popular opinion: “Nestle suffers from tall poppy syndrome, and has been quite reluctant to step forward and display its sustainability credits. it’s important to look for accreditation from other bodies, so Rainforest Alliance is a known entity which gives the consumer comfort. it’s also putting what you’re doing into the right language.”

On how such messages should be communicated, Wells echoed Ahuja in saying: “Be very factual, be very credible in talking about what you do and showing you’re being accredited by a third-party.”

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