For a company that has roots going back to the 1800s, Weitnauer Group is still evolving and staying relevant nearly 160 years after it was founded.
With the expansion of its distribution network, Weitnauer has developed into a leading organization providing duty free operation services, sales, and distribution resources to major brand owners.
Just this month, Weitnauer announced the opening of its latest subsidiary in Uruguay, strategically positioned to cater to the vibrant and expanded market along the Brazilian border. This new operation is headed by Jonathan Romano, VP for Americas.
Romano sat down with Travel Markets Insider at the 2024 ASUTIL Conference in Bogota and shared the company’s lofty ambitions in the global travel retail channel.
“The great advantage of Weitnauer is its general balance between categories and absence of geographic dependency. Our turnover is well split between the Americas and EMEA,” Romano tells TMI. “In terms of categories, Perfume & Cosmetics, Food and Beverages and Tobacco have very similar weights too. That gives a clear edge to face market trends or potential economic risks.”
The history of duty free is also the history of Weitnauer.
Weitnauer is one of the oldest companies in the travel retail industry. It was established in Switzerland in 1865, and by 1900 had become a major importer and distributor of tobacco.
Following the opening of the first duty free store in Ireland in 1947, Weitnauer began distributing in duty free markets as well.
“This marked the company’s emergence as a significant player in both domestic and travel retail sectors,” says Romano.
The company even owned Dufry (now Avolta), before selling it to Advent International in 2004, refocusing its strategic efforts solely on distribution.
Today Weitnauer operates in more than 100 countries, with key operations in the CIS countries, the Balkans, Turkey, Paraguay, and the USA.
“We are proud to operate in both domestic and travel retail markets. I would even say that it is a necessity today since consumers are more global than ever. Being omnichannel is now paramount to brands who want to offer the same level of experience to their consumers in all channels,” says Romano.
“So for a distributor having that dual capacity becomes a differentiator and a competitive advantage. We’re structured by regions and all markets whether they are domestic or travel retail report to the same regional office.”
Romano points to Turkey as a key market for Weitnauer, where it is a leader in domestic distribution of spirits, as well as Africa, where the company has developed partnerships with leading luxury brand houses.
“Miami is our Travel Retail stronghold with a reach to all airports, free zones, ports and downtown duty free,” says Romano.
“The Americas is a perfect representation of Weitnauer category diversity. While our Miami Duty Free office is the regional leader in tobacco, Paraguay has a complete assortment of P&C, Spirits and Food.”
In tobacco, Weitnauer has a strong relationship with all of the key leaders: JTI, Philip Morris International, BAT, and Imperial Tobacco.
“The Brazil domestic operation is solely dedicated to perfume and cosmetics, and in Uruguay many of our existing partners in all categories have trusted us for their brand management and distribution.”
Weitnauer is currently relaunching Revlon in Brazil, with a very ambitious roadmap, says Romano.
Since Weitnauer is growing significantly in Brazil and Paraguay where it excels in domestic and duty free distribution, Romano says there was now a necessity to also address demand in Uruguay.
“Being consumer centric we can’t ignore the synergies between these three countries. Having presence in all three markets represents a key differentiator for brands and offers a better control over our markets,” he says.
“In addition we see Uruguay as a great logistic opportunity for our LATAM duty free operations, a chance to shorten lead-times and offer better services to our clients.”
Weitnauer’s recent expansion in Uruguay is the first of many future developments for the company, says Romano.
“The group has acquired great expertise of all categories throughout its long trajectory. We want to build synergies, use our strong road to markets to diversify our operations. Many projects are undergoing as we speak, but for instance our Miami office currently distributes to all airports and travel retail locations from the North of Canada to the South of Chile, that represents a great diversification opportunity.”
Weitnauer offers brands complete brand equity management, Romano tells TMI.
“We provide comprehensive distribution services which are not limited to seamless logistics and operations. Ultimately any brand should feel that Weitnauer is a natural expansion of their own company,” he says.
“Our consumer centricity and market knowledge are our differentiators, but I would say that our unique selling point is our ability to offer tailored solutions to brands.
“We are not locked into a business model or a geographic territory, we explore everything with our partners, and we can adapt our menu of services from full distribution, 3PL, trade marketing or retail services. Every combination is a possibility!
“We treat each brand as the utmost priority, and thanks to our unique flexibility we can offer 100% tailored made solutions.”
Romano says Weitnauer can offer its partners many different options.
“We have the expertise. We have the ambition. And we’re there in the market. And we want to bring that expertise to more markets. We have that willingness, we have that ambition, and we’re looking forward.”
