Avolta has acquired Free Duty, a prominent Hong Kong travel retailer, to strengthen its presence in the Asia Pacific market, accessing a vast pool of travelers and capitalizing on recent duty-free policy changes.

Information on the Target

Avolta, a renowned global leader in travel retail as well as food and beverage services, has recently acquired Free Duty, a well-established border travel retailer located in Hong Kong and serving the Greater Bay Area. This significant acquisition was entirely funded through Avolta's cash reserves and aims to enhance the company's presence within the Asia Pacific market. By bringing Free Duty into its portfolio, Avolta is projected to reach approximately 150 million travelers annually and is expected to boost its regional sales by CHF 250 million, thereby aligning with its ambitious 'Destination 2027' growth strategy.

Free Duty, founded in 1997, operates over 30 duty-free shops in strategically located venues, including Hong Kong International Airport, ferry terminals, and major railway stations. The retailer offers a wide array of products such as wines, spirits, beauty products, perfumes, and health items. Due to its dedication to excellence, Free Duty has garnered several prestigious Raven Fox awards in the travel retail sector.

Industry Overview in Hong Kong

The travel retail industry in Hong Kong has shown resilience and adaptability over the years, primarily driven by the region's status as a major gateway to Mainland China. Recent policy changes have significantly influenced this market, particularly the trip