The Great Banking Bake Off: insights from Money20/20 USA on how to make the perfect generative AI ‘cake’

Technology

Alice Chambers |

06 November 2024

The role of generative artificial intelligence in financial services is evolving and understanding its full potential is as intricate a baking a complex recipe, according Efi Pylarinou, founder of financial services content provider GrowFin.

Pylarinou hosted a panel at Money20/20 USA including thought leaders Uljan Sharka, CEO of iGenius; Christine Cavallo, senior vice president and head of strategy at Citizens; and Tyler Pichach, head of banking strategy for worldwide financial services at Microsoft, to discuss how technology providers are helping banks to ‘bake’ generative AI into their operations. Through the metaphor of baking, the session explored the nuances of crafting impactful AI-driven solutions for financial services by comparing the journey of AI adoption to creating the perfect cake the right ingredients, kitchen appliances and the best bakers.

Layering AI into banking

Pylarinou set the stage by comparing generative AI in banking to molecular gastronomy in cooking.

“In baking, we are moving toward combinations we’ve never seen before,” she said, likening generative AI to a crucial ingredient like baking powder. Just as baking powder drives chemical reactions in cooking, generative AI has the potential to transform banking with new solutions for productivity and innovation. But, as Pylarinou pointed out, “we’re going beyond general productivity applications in banking.”

The recipe for success starts with the basics: structured data from reports and social channels, just as a cake requires butter, flour, eggs and sugar. But assembling these ingredients requires a clear vision of how each component should integrate with the rest.

Precision and preparation for a successful AI recipe

“Success is in the details,” said Sharka, emphasising the need for careful process management when implementing AI. “It’s all about the process and understanding which ingredients to blend together.”

Sharka highlighted how banks need to approach AI with a structured mindset, breaking down the details for success and creating “ready-made mixes” for clients who prefer plug-and-play solutions.

“Not everyone bakes from scratch,” he noted. Some clients benefit from curated mixes – predefined, customisable AI models – while others choose to experiment with their own data “ingredients.” His company, iGenius, simplifies this process by providing large language model (LLM) blends and plugins to empower banks with tailored AI capabilities.

Structuring the kitchen: people and processes as key ingredients

Cavallo then likened the banking AI journey to a bustling kitchen, stressing the need for everyone in the organisation to understand their role from the “head chef” (AI strategist) to the “kitchen porter” (support staff).

“We’re thinking of the various chefs in the kitchen, making sure we consider risk, cybersecurity, talent and training,” she said.

Cavallo underscored the importance of a structured approach to governance, noting that a core governance framework is essential for ensuring quality and compliance across AI implementations. To make this shift, she advocated for continuous education and training.

“The human will always be in the loop,” she added, emphasising that while AI is powerful, humans remain essential for oversight, quality control and ethical decision-making.

Microsoft provides the essential kitchen appliances for generative AI

Pichach described Microsoft’s role as providing the “ovens and mixers” to help enterprises start their AI journeys. Microsoft’s solutions, from Microsoft Azure to Microsoft Cloud for Financial Services, offer banks the technology “recipes” to accelerate transformation while managing data, privacy and security. Pichach shared how Microsoft enabled one customer to support 45,000 contact centre agents with AI-driven knowledge management – a project that was initially expected to take two years but was completed in just four months due to employee enthusiasm.

In addition to the speed of adoption, Pichach highlighted the need for data governance and security.

“Security wins every single time,” he noted, pointing out that banks must prioritise protecting sensitive data as they deploy generative AI. Clients are also concerned with the pace of change and ensuring the underlying data is accurate. Pichach identified these areas as critical challenges in AI adoption, highlighting Microsoft’s commitment to a “security-first” approach to address these complexities.

A future-ready recipe for the AI-powered bank

While generative AI presents transformative opportunities, the panel speakers reinforced that successful AI integration requires more than just technology. It’s a combination of precise ingredients, process management and a well-equipped “kitchen.”

As generative AI adoption accelerates across industries, financial institutions are carefully assembling their recipes for success. With support from the Microsoft partner ecosystem, enterprises are creating custom AI-driven solutions, developing the skillsets and building the governance frameworks needed to meet future challenges.

Discover more news from Money 20/20 on our dedicated landing page.

First look at Jason Statham’s new action movie

Arts & Culture, Film & TV

Jason Statham stars in a first look at new action movie Mutiny.The film, which co-stars Peaky Blinders’ Annabelle Wallis, focuses on a man called Cole Reed who witnesses the murder of his billionaire industrialist boss.With everyone pointing the finger at him, Reed goes on the run and tries to prove his innocence, while also exposing an international criminal conspiracy.Jason Statham/LionsgateRelated: Best movie box sets to buyA first look still has now been released, showing Statham in character with his back to the wall while holding a gun.Mutiny has been directed by Plane’s Jean-François Richet, with Lindsay Michel and JP Davis writing the screenplay.Earlier this year, Statham starred in The Beekeeper, which follows an ex-special operative who leads a quiet life as a beekeeper. However, this is upended when a friend is targeted by a phishing scam and dies by suicide.The movie earned a 71% fresh score on Rotten Tomatoes, the critical consensus calling it “cheerfully undemanding and enjoyably retrograde”.Daniel Smith//SkyRelated: Titanic star is unrecognisable as Marlon Brando in first look at new movie”The Beekeeper proves that when it comes to dispensing action-thriller justice, Statham hasn’t lost his sting,” it adds.In Digital Spy’s three-star verdict, we said: “Sure, you could criticise several aspects of The Beekeeper, but there’s no way you’re watching this movie expecting something different to what you’re given. It might not be a great movie exactly, but you’ll be buzzing to see Jason Statham back doing what he does best.”Meanwhile, Statham is set to reunite with Expendables co-star Sylvester Stallone in new action movie Levon’s Trade, which will be directed by Suicide Squad’s David Ayer.Mutiny is yet to confirm a release date.November 2024 gift ideas and dealsSam is a freelance reporter and sub-editor who has a particular interest in movies, TV and music. After completing a journalism Masters at City University, London, Sam joined Digital Spy as a reporter, and has also freelanced for publications such as NME and Screen International.  Sam, who also has a degree in Film, can wax lyrical about everything from Lord of the Rings to Love Is Blind, and is equally in his element crossing every ‘t’ and dotting every ‘i’ as a sub-editor.

I grew up in a council house and now run a £1.3bn business – why Labour’s Budget is an absolute disaster

Business News

ENTREPRENEUR Ryan Howsam, who grew up in a council house and now runs a £1.3billion business, has slammed Labour’s Budget as an ‘absolute disaster’ for small firms.In an exclusive interview with The Sun, the insurance boss warned that Labour’s recent Budget will kill family businesses and force firms to cut wages.Staysure CEO Ryan Howsam believes targeting the wealthy is a “stupid” moveThe founder and CEO of insurer Staysure blasted changes to inheritance tax, National Insurance and minimum wage.Mr Howsam set up his first business at 19 and is now the chief executive of a major, family-run insurance company which employs over 700 people.Family-run businesses form around 86% of the UK’s private sector, according to the Family Business Research Foundation, most of which are considered “small to medium” businesses (SMEs).But several changes announced in the Budget last week were targeted at increasing costs for those firms, which Mr Howsam says will see more firms close and a loss of opportunities for everyone.more on moneyFor example, he said the government’s increase to the Living and Minimum Wages by 6.7% and 16%, respectively, as well as employers’ National Insurance will mean firms have to cut wage growth.Meanwhile, he said the changes to bring family business assets into the scope of inheritance tax (IHT) will force more family businesses to close, or their families will have to sell them at a reduced price to pay the tax bill.”I don’t really think [the Budget] served lower-income households very well, as minimum wage growth and the National Insurance increase will hit businesses’ ability to grow, and that will ultimately mean there’s less wage growth and less opportunity,” he explained.”And the changes to inheritance tax are an absolute disaster.Most read in Business”I come from a council house background, so I’m as working class as you get and I understand people having less disposable income.”But this narrative that Labour has got that we should hammer anybody who has got money and wants to succeed is like biting the hand that feeds you. Why would you do that? “These are the people bringing the cash in and paying the majority of our tax.”‘Changes to IHT will kill family businesses’Changes to bring family businesses into the scope of inheritance tax (IHT) will mean families having to pay 20% tax on assets over £1million.Previously, family businesses were exempt from IHT if left to a loved one. But now this exemption will only apply to the first £1million of assets in the businesses, which Mr Howsam says means families will have to sell their busniess at a reduced price to pay the remaining tax bill.”Most family businesses are not quoted on the stock market, which means HMRC will have to put an arbitrary value on them, and then the family has just got to come up with that money,” he explained.”If you take a business valued at £4million, that business might only have £100,000 in the bank, but 20% of £4million (without business relief on the first £1million) is £800,000. Where are the family going to get £800,000 from, plus interest?”They won’t – the only way the money will come in is it they sell the business for a lot less than it’s worth because they are desperate.”So, these families have worked their whole lives, but they will be forced to sell the business or try to come up with an awful lot of money. It’s a really stupid move.”Labour’s top Budget changes’Targeting the wealthy will mean more tax for everyone’Mr Howsam added that targeting wealth and businesses will ultimately end up increasing taxes for everyone if those people decide to leavfe the UK.”Around 4,500 millionaires left the country last year, and this year it’s forecast to be 9,500 millionaires,” he said.”You may think that doesn’t matter, but it does matter, because the top 1% of taxpayers pay 28% of HMRC’s tax take – and then there’s the money they spend, which puts their tax take up to 36%.”If those people leave, who do you think is going to have to pay more? The country is just getting less well off as a result.”The government’s plan to also include pensions in the scope of IHT will also mean far more people end up paying the death tax, he said.Currently, only around 4% of families pay IHT, but Mr Howsam says the changes in the Budget will trickle down and start hitting mid-to-low income families.”IHT is going to hit middle income people in a big way, and then it’s going to start coming down towards lower-income people too, if they have a bigger pension pot,” he said.Other announcements in the BudgetIn the Budget last week, Labour announced a raft of measures to fill a £22billion “black hole” in the country’s finances allegedly left by the previous government.A few of those measures included the changes to IHT, a crackdown on benefit fraud, a hike in tobacco duty and a stamp duty increase on second homes.However, there was some good news for savers in the Budget.Benefits like Universal Credit and Attendance Allowance will rise by 1.7% in line with September’s inflation figure. Ms Reeves also confirmed the state pension will rise by up to £473 next year.READ MORE SUN STORIESThe minimum wage is also set to rise for workers aged 21 and over by 6.7% from next April from £11.44 to £12.21.We have rounded up legal ways to avoid inheritance tax here.WHAT ELSE IS HIDDEN IN THE SMALL PRINT?WE scoured the Budget documents to find these announcements hidden in the small print . . . CHILD BENEFIT REFORM AXEDTHE reform to base Child Benefit on total household income will not be going ahead.Under current rules, two parents earning £59,000 a year – £118,000 in total – receive the benefit in full.But a household could have a lot less in total income and not get the full payment if one of the parents earns over £60,000. This will now remain the case.‘HELP TO SAVE’ EXTENDEDTHE Government will extend the current Help To Save until April 5, 2027.The scheme, where those on low incomes and Universal Credit can get a cash bonus of £1,200 over four years, was due to end in 2025.‘MORTGAGE GUARANTEE’ PERMANENTBUYERS can get a 95 per cent loan-to-value mortgage through the mortgage guarantee scheme which is now being made permanent.The scheme had been set to end next year.SELF-ASSESSMENT SHAKE-UPA BUMPER £16million will be invested to modernise the HMRC’s app so self-assessment taxpayers can make voluntary advance payments on their tax bill in instalments.STAMP DUTY RELIEFFOR first-time buyers, Stamp Duty will rise from April – but you have five months to make a purchase and beat the increase.An independent mortgage broker can help you work out how much you can borrow to set your budget.

Tourists can now buy ‘100% authentic’ fresh air cans from Lake Como for £8.25

Travel

Your support helps us to tell the storyFrom reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it’s investigating the financials of Elon Musk’s pro-Trump PAC or producing our latest documentary, ‘The A Word’, which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.Your support makes all the difference.CloseRead moreTourists visiting Italy’s picturesque Lake Como can buy magnets or postcards to remember their trip – or now, the all-new ‘Lake Como Air’ trapped in a can for €9.90 (£8.25).Lake Como, found in Northern Italy’s Lombardy region at the foothills of the Alps, serves unmatched views of beautiful Italian vistas and luxury accommodations dotted around the shoreline.The upscale southwestern area has attracted the likes of George Clooney and Madonna to take up residency at lake-front villas, while the commune of Bellagio, nicknamed the ‘pearl of Lake Como’, has enticed visitors to wander through to its colourful historic buildings.Now, an Italian marketing specialist has placed a new offering on the shelves of souvenirs: canned air for travellers to take home.The cans state they include 400ml of 100 per cent authentic fresh air from Lake Como, describing it as “the perfect and luxurious souvenir”.The cans were created by marketing specialist Davide Abagnale, who initially had an e-commerce site selling Lake Como posters but has now set his sights on a new initiative.Lake Como is a popular tourist hotspot and haven for those who can afford a luxury villa

Tourists can now buy ‘100% authentic’ fresh air cans from Lake Como for £8.25

Travel

Your support helps us to tell the storyFrom reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it’s investigating the financials of Elon Musk’s pro-Trump PAC or producing our latest documentary, ‘The A Word’, which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.Your support makes all the difference.CloseRead moreTourists visiting Italy’s picturesque Lake Como can buy magnets or postcards to remember their trip – or now, the all-new ‘Lake Como Air’ trapped in a can for €9.90 (£8.25).Lake Como, found in Northern Italy’s Lombardy region at the foothills of the Alps, serves unmatched views of beautiful Italian vistas and luxury accommodations dotted around the shoreline.The upscale southwestern area has attracted the likes of George Clooney and Madonna to take up residency at lake-front villas, while the commune of Bellagio, nicknamed the ‘pearl of Lake Como’, has enticed visitors to wander through to its colourful historic buildings.Now, an Italian marketing specialist has placed a new offering on the shelves of souvenirs: canned air for travellers to take home.The cans state they include 400ml of 100 per cent authentic fresh air from Lake Como, describing it as “the perfect and luxurious souvenir”.The cans were created by marketing specialist Davide Abagnale, who initially had an e-commerce site selling Lake Como posters but has now set his sights on a new initiative.Lake Como is a popular tourist hotspot and haven for those who can afford a luxury villa

Engagement, education and experience – Penfolds on the pillars of wine’s progress in travel retail

Travel

Put wine exploration and experience at the heart of the travel retail environment and offer, and commercial and reputational rewards will follow. So says Penfolds Global Director – Global Travel Michael Jackson in this interview.Just over a year since he was appointed Global Director – Global Travel at Treasury Wine Estates’ flagship label Penfolds, Michael Jackson says that the leading wine brand is accelerating investment behind its vision to become a global luxury icon.Taking the next steps in its innovation drive and engaging travelling consumers in new and memorable ways across the travel journey are core elements of this plan. So too is bringing fresh thinking about how wine can contribute to travel retailers’ portfolios.Speaking to The Moodie Davitt Report during the TFWA World Exhibition recently, Jackson says that creating a Penfolds wine experience in the channel is an area of acute focus today.Michael Jackson: Leading a rethink of how travel retail tempts the consumer through wine experiences“Penfolds is investing a huge amount of resource and energy in the travel retail sector. We feel we can play a role in terms of being a category champion, and leading people into the category.“We see Penfolds as the brand that helps to build confidence in the further evolution of the category, that helps capture the consumer who potentially doesn’t drink spirits or other categories and would enjoy a bottle of wine, including purchasing as a gift. These are people who want a level of personalisation that the category doesn’t always offer.“That in turn means rethinking how we sell wine and putting the occasion at the heart of the experience.”Understanding what moves the shopper lies at the heart of the strategy today, and here Penfolds is leaning on a wealth of data gleaned from a recent consumer study across key markets.“There are some key insights around gift-giving, with wine the number one gifting item within wines & spirits,” says Jackson. “We know that 70% of people that have consumed wine in the previous 12 months have gifted wine. One in four people that do not drink wine themselves actually gift wine. So clearly gifting and personalisation are drivers that we aim to tap into in a big way.“We have been very clear in defining the consumer that we are targeting and being focused on delivering activity that talks to them.”In particular, Penfolds is focused on three core groups (extended from two that Jackson discussed with us in an interview last year).There’s the ‘New Luxurian’, who identifies with wine as part of their luxury lifestyle. ‘The Connoisseur’, often a collector of wine, is more interested in the details of the winemaking process and may have their own cellar. Then there is the ‘Status Connoisseur’, who tends to be younger, more confident in their choices, willing to spend and who loves to talk about wine.These consumers are top of mind for brand management as it fixates on experience and the drivers of innovation.That focus on shopper engagement as a priority is built into the Global Travel division’s strategy and mandated from the top. Jackson explains: “We are part of the consumer experience channel internally, which also encompasses our cellar doors but also our digital channels. I report up to our Chief Marketing Officer so that also shows you how we see the role of the travel channel in providing luxury experiences to our core audiences.”Aiding Penfolds’ recruitment in the channel is a series of creative initiatives that involve collaborations, exclusive releases, plus digital and physical store investment.High fashion meets fine wines as Penfolds and Japanese fashion designer NIGO launch a partnershipLast year the company struck a multi-year relationship with acclaimed fashion designer NIGO (Founder of the Human Made label) to lead the vision for selected Penfolds projects. This began with the global release of One by Penfolds – a range of wines celebrating ‘Oneness’.Just this month, Penfolds and NIGO launched a limited collection for the upcoming festive season – ‘Holiday Designed by Nigo’. The range features four collectible gift boxes and takes inspiration from Nigo’s interpretation of the graphic checkered pattern found in traditional Asian textiles.The launch programme involves activations with Lotte Duty Free at Melbourne Airport and with Hainan Tourism Duty Free Shopping Complex (HTDF) in Sanya, Hainan. Notably, HTDF and Penfolds also recently combined to open a landmark Hainan Island offshore duty-free outlet for the brand.That store provides a comprehensive shopping experience from daily sampling to collector-grade selections, while showcasing the brand’s key offers, including wines from Penfolds’ Bins and Grange collection.In another project, Grange by NIGO was released via Gebr. Heinemann at Copenhagen and Sydney airports earlier this year, marking Penfolds’ first designer reinterpretation of its signature wine.This is one of a series of releases to coincide with Penfolds’ 180th anniversary celebrations in 2024.The limited-edition Bin 180 Coonawarra Cabernet Shiraz 2021 is another highlight, one colourfully amplified at an exclusive pop-up at Melbourne Airport with Lotte Duty Free.The pop-up featured the ultra-rare travel retail-exclusive Bin 180 Coonawarra Cabernet Shiraz 2021 Jeroboam (3 litres), one of only eight available globally.The collector’s edition was sold on 9 August, just nine days after its launch. Alongside this, 1.5-litre bottles and 750ml gift boxes were also made available, designed by South Australian artisan Andrew Bartlett.The sumptuous Bin 180 blend combines Block 10 Cabernet Sauvignon and Block 5 Shiraz, renowned for their distinctive terroir expressions.Penfolds Bin 180: Fine and rareThe Lotte Duty Free partnership extends to an immersive shop-in-shop experience in Singapore Changi Airport Terminal 3, where the retailer opened its eye-catching Central Duplex wines, spirits & tobacco store in December 2023.“These openings and releases speak to how we aim to use experience,” says Jackson. “We recognise that value is not just about price but about how you add value through experience, interaction and special expressions.“Our Bin 180 limited-edition in 3 litres sold out at Melbourne Airport within just a few days as there is such demand for these rare offers.”The Penfolds City Explorer pack, coming soon to market, is another big initiative, with expressions connected to some leading travel destinations. “This speaks to sense of place, which has always been important in global travel, but also speaks to the consumer experience and how we add value.”Digital touchpoints are a key element in the consumer engagement drive. The Changi T3 shop-in-shop for example houses the first Penfolds 3D screen, inviting travellers on a visual journey through the history of the brand and the picturesque vineyards of Australia, providing an interactive way for shoppers to engage with the brand.The Penfolds Digital Sommelier programme is another feature of this and other stores, and has been advanced recently with an updated version (see panel).The programme, which analyses individual taste preferences to recommend wines that resonate with each customer, now carries more details about the range, presented in a more user-friendly, intuitive way on screen.All of these initiatives speak to the importance of encouraging and reinforcing wine’s status as a travel retail staple. Further investment behind this will follow.Jackson says: “Visibility is one of our key pillars. We have been running many activations in global travel, with an overall ambition to drive more permanent visibility and repetition with consumers. For example, as we continue to plan for the future, we are looking at a new concept for our Sydney shop-in-shop and hope to take that concept to more locations around the world.”Penfolds has updated its Digital Sommelier with added range and functionsFor Penfolds, standing out from the crowd is vital, but so too is contributing to category growth that can benefit all brands. Here, Jackson outlines how he views the opportunity.“When thinking about the traditional ways consumers shop for wine, the assumption is that people shop by varietal. However, at Penfolds, we have been shifting our approach to be more experiential led.“This can include anything from visibility within the retail space, limited-edition offerings, how we communicate, education and generally how the brand shows up through distinctive codes. With the experience at the heart, we see more engagement from shoppers, resulting in buyers who are willing to trade up with their wine selection.“Having dedicated Penfolds ‘owned’ brand areas within global travel has also been a significant shift. Instead of Penfolds wines being grouped by category/varietal, we have been fortunate to build custom-designed ‘stores within stores’ or specific Penfolds-branded areas to foster greater brand visibility. When looking at our future global travel plans, we’re always striving for Penfolds to have maximum impact within the retail locations, whether that be based on footprint or highly engaging activation.”The strategy is backed by strong commercials, with Global Travel performing very well in 2024 to date, notes Jackson.“With many retailer partners in many markets around the world, we have been fortunate to see positive growth ahead of the category, which is really exciting,” he says. As China continues to re-open within the global travel channel (post the lifting of tariffs on Australian wine), Penfolds is beginning to make its way back on-shelf.Making the most of immersive displays and experiences (Lotte Duty Free, Melbourne Airport pictured)Jackson says: “To date, Penfolds’ depletion in China global travel is in line with our expectations, and we are excited to play a part in reigniting the wine category in China. Outside of China while tariffs were imposed, we grew our demand base across other markets and saw great growth in Asia (Thailand, Malaysia and Vietnam) which put us in a really strong position. It means that compared to 2019 we are ahead in terms of performance.”As the brand marks 180 years, Jackson concludes with a message about Penfolds’ potential contribution to travel retail now and in future.“We want to build belief that Penfolds can act as a flagship brand for the category, and we have insights showing we can be a category partner as well as a brand partner.“We may be one brand but we never sit still. We are constantly innovating and creating consumer demand across markets.“With Penfolds’ 180th anniversary this year, we are not only celebrating our past but we are taking the opportunity to further establish ourselves as a global luxury icon. And this channel plays a big role in delivering on that vision.”A striking showcase with Lotte Duty Free in Changi Terminal 3Marking 180 years with a vibrant Cannes showcasePenfolds shared its latest innovations and experiences at the recent TFWA World Exhibition as it marked 180 years of the brand with a special focus on travel retail.Highlights included:The City Explorer Pack: A special-edition gift set available as an exclusive gift with purchase, commemorating the brand’s 180th anniversary. Tailored to eight cities, including London, Sydney, Hong Kong and Singapore, the collection reflects Penfolds’ global reach and luxury appeal.Each pack features two single country of origin Bin wines – made up of one or a combination of Bin 169 Coonawarra Cabernet Sauvignon and Bin 150 Marananga Shiraz, both from Australia. Encased in a signature silver suitcase tin adorned with a city-themed travel belt and customisable luggage tags, the City Explorer Pack launches in December, celebrating Penfolds connection to many sought-after destinations.Digital Sommelier 2.0: Building on the success of its original launch in May 2023, the Digital Sommelier was reintroduced at Cannes in a dynamic, visual-led format. This upgraded tool enhances the wine selection process for travellers with an interactive, gamified experience that boosts engagement and enjoyment.Featuring a modernised user interface with refreshed gamified elements and fun on-screen motion, the Digital Sommelier 2.0 is designed to make exploring the Penfolds’ wine portfolio more engaging and immersive.Wine Charms: Penfolds offered an exclusive first look at its forthcoming Wine Charms, luxury accessories designed to elevate the at-home wine experience.A wine-tasting experience: One of the event highlights was the Wine Tasting Experience, where guests were guided through several landmark Penfolds releases.Led by Penfolds Brand Ambassador Toby Amphlett, the tasting featured wines such as 2008 Bin 169 Coonawarra Cabernet Shiraz and 2018 Superblend 802.B Cabernet Shiraz, providing a deeper insight into Penfolds’ craftsmanship and legacy.The tasting highlighted the collectability and ageability of these fine wines by allowing guests to experience how they have evolved over time. The 2008 Bin 169, resurrected after its original 1973 vintage, was presented alongside the recent 2019 release, offering a rare opportunity to appreciate the wine’s enduring quality and evolution.Guests also sampled the 2008 Bin 620 Cabernet Shiraz, which offered more context for the Superblend series and culminated in the tasting of the 2018 Superblend 802.B – a release poised to become a collector’s favourite, said Penfolds. ✈This interview was first published in The Moodie Davitt eZine, Issue 340. Click here for access.A Penfolds experience at TFWA World Exhibition, including the City Explorer series below

Engagement, education and experience – Penfolds on the pillars of wine’s progress in travel retail

Travel

Put wine exploration and experience at the heart of the travel retail environment and offer, and commercial and reputational rewards will follow. So says Penfolds Global Director – Global Travel Michael Jackson in this interview.Just over a year since he was appointed Global Director – Global Travel at Treasury Wine Estates’ flagship label Penfolds, Michael Jackson says that the leading wine brand is accelerating investment behind its vision to become a global luxury icon.Taking the next steps in its innovation drive and engaging travelling consumers in new and memorable ways across the travel journey are core elements of this plan. So too is bringing fresh thinking about how wine can contribute to travel retailers’ portfolios.Speaking to The Moodie Davitt Report during the TFWA World Exhibition recently, Jackson says that creating a Penfolds wine experience in the channel is an area of acute focus today.Michael Jackson: Leading a rethink of how travel retail tempts the consumer through wine experiences“Penfolds is investing a huge amount of resource and energy in the travel retail sector. We feel we can play a role in terms of being a category champion, and leading people into the category.“We see Penfolds as the brand that helps to build confidence in the further evolution of the category, that helps capture the consumer who potentially doesn’t drink spirits or other categories and would enjoy a bottle of wine, including purchasing as a gift. These are people who want a level of personalisation that the category doesn’t always offer.“That in turn means rethinking how we sell wine and putting the occasion at the heart of the experience.”Understanding what moves the shopper lies at the heart of the strategy today, and here Penfolds is leaning on a wealth of data gleaned from a recent consumer study across key markets.“There are some key insights around gift-giving, with wine the number one gifting item within wines & spirits,” says Jackson. “We know that 70% of people that have consumed wine in the previous 12 months have gifted wine. One in four people that do not drink wine themselves actually gift wine. So clearly gifting and personalisation are drivers that we aim to tap into in a big way.“We have been very clear in defining the consumer that we are targeting and being focused on delivering activity that talks to them.”In particular, Penfolds is focused on three core groups (extended from two that Jackson discussed with us in an interview last year).There’s the ‘New Luxurian’, who identifies with wine as part of their luxury lifestyle. ‘The Connoisseur’, often a collector of wine, is more interested in the details of the winemaking process and may have their own cellar. Then there is the ‘Status Connoisseur’, who tends to be younger, more confident in their choices, willing to spend and who loves to talk about wine.These consumers are top of mind for brand management as it fixates on experience and the drivers of innovation.That focus on shopper engagement as a priority is built into the Global Travel division’s strategy and mandated from the top. Jackson explains: “We are part of the consumer experience channel internally, which also encompasses our cellar doors but also our digital channels. I report up to our Chief Marketing Officer so that also shows you how we see the role of the travel channel in providing luxury experiences to our core audiences.”Aiding Penfolds’ recruitment in the channel is a series of creative initiatives that involve collaborations, exclusive releases, plus digital and physical store investment.High fashion meets fine wines as Penfolds and Japanese fashion designer NIGO launch a partnershipLast year the company struck a multi-year relationship with acclaimed fashion designer NIGO (Founder of the Human Made label) to lead the vision for selected Penfolds projects. This began with the global release of One by Penfolds – a range of wines celebrating ‘Oneness’.Just this month, Penfolds and NIGO launched a limited collection for the upcoming festive season – ‘Holiday Designed by Nigo’. The range features four collectible gift boxes and takes inspiration from Nigo’s interpretation of the graphic checkered pattern found in traditional Asian textiles.The launch programme involves activations with Lotte Duty Free at Melbourne Airport and with Hainan Tourism Duty Free Shopping Complex (HTDF) in Sanya, Hainan. Notably, HTDF and Penfolds also recently combined to open a landmark Hainan Island offshore duty-free outlet for the brand.That store provides a comprehensive shopping experience from daily sampling to collector-grade selections, while showcasing the brand’s key offers, including wines from Penfolds’ Bins and Grange collection.In another project, Grange by NIGO was released via Gebr. Heinemann at Copenhagen and Sydney airports earlier this year, marking Penfolds’ first designer reinterpretation of its signature wine.This is one of a series of releases to coincide with Penfolds’ 180th anniversary celebrations in 2024.The limited-edition Bin 180 Coonawarra Cabernet Shiraz 2021 is another highlight, one colourfully amplified at an exclusive pop-up at Melbourne Airport with Lotte Duty Free.The pop-up featured the ultra-rare travel retail-exclusive Bin 180 Coonawarra Cabernet Shiraz 2021 Jeroboam (3 litres), one of only eight available globally.The collector’s edition was sold on 9 August, just nine days after its launch. Alongside this, 1.5-litre bottles and 750ml gift boxes were also made available, designed by South Australian artisan Andrew Bartlett.The sumptuous Bin 180 blend combines Block 10 Cabernet Sauvignon and Block 5 Shiraz, renowned for their distinctive terroir expressions.Penfolds Bin 180: Fine and rareThe Lotte Duty Free partnership extends to an immersive shop-in-shop experience in Singapore Changi Airport Terminal 3, where the retailer opened its eye-catching Central Duplex wines, spirits & tobacco store in December 2023.“These openings and releases speak to how we aim to use experience,” says Jackson. “We recognise that value is not just about price but about how you add value through experience, interaction and special expressions.“Our Bin 180 limited-edition in 3 litres sold out at Melbourne Airport within just a few days as there is such demand for these rare offers.”The Penfolds City Explorer pack, coming soon to market, is another big initiative, with expressions connected to some leading travel destinations. “This speaks to sense of place, which has always been important in global travel, but also speaks to the consumer experience and how we add value.”Digital touchpoints are a key element in the consumer engagement drive. The Changi T3 shop-in-shop for example houses the first Penfolds 3D screen, inviting travellers on a visual journey through the history of the brand and the picturesque vineyards of Australia, providing an interactive way for shoppers to engage with the brand.The Penfolds Digital Sommelier programme is another feature of this and other stores, and has been advanced recently with an updated version (see panel).The programme, which analyses individual taste preferences to recommend wines that resonate with each customer, now carries more details about the range, presented in a more user-friendly, intuitive way on screen.All of these initiatives speak to the importance of encouraging and reinforcing wine’s status as a travel retail staple. Further investment behind this will follow.Jackson says: “Visibility is one of our key pillars. We have been running many activations in global travel, with an overall ambition to drive more permanent visibility and repetition with consumers. For example, as we continue to plan for the future, we are looking at a new concept for our Sydney shop-in-shop and hope to take that concept to more locations around the world.”Penfolds has updated its Digital Sommelier with added range and functionsFor Penfolds, standing out from the crowd is vital, but so too is contributing to category growth that can benefit all brands. Here, Jackson outlines how he views the opportunity.“When thinking about the traditional ways consumers shop for wine, the assumption is that people shop by varietal. However, at Penfolds, we have been shifting our approach to be more experiential led.“This can include anything from visibility within the retail space, limited-edition offerings, how we communicate, education and generally how the brand shows up through distinctive codes. With the experience at the heart, we see more engagement from shoppers, resulting in buyers who are willing to trade up with their wine selection.“Having dedicated Penfolds ‘owned’ brand areas within global travel has also been a significant shift. Instead of Penfolds wines being grouped by category/varietal, we have been fortunate to build custom-designed ‘stores within stores’ or specific Penfolds-branded areas to foster greater brand visibility. When looking at our future global travel plans, we’re always striving for Penfolds to have maximum impact within the retail locations, whether that be based on footprint or highly engaging activation.”The strategy is backed by strong commercials, with Global Travel performing very well in 2024 to date, notes Jackson.“With many retailer partners in many markets around the world, we have been fortunate to see positive growth ahead of the category, which is really exciting,” he says. As China continues to re-open within the global travel channel (post the lifting of tariffs on Australian wine), Penfolds is beginning to make its way back on-shelf.Making the most of immersive displays and experiences (Lotte Duty Free, Melbourne Airport pictured)Jackson says: “To date, Penfolds’ depletion in China global travel is in line with our expectations, and we are excited to play a part in reigniting the wine category in China. Outside of China while tariffs were imposed, we grew our demand base across other markets and saw great growth in Asia (Thailand, Malaysia and Vietnam) which put us in a really strong position. It means that compared to 2019 we are ahead in terms of performance.”As the brand marks 180 years, Jackson concludes with a message about Penfolds’ potential contribution to travel retail now and in future.“We want to build belief that Penfolds can act as a flagship brand for the category, and we have insights showing we can be a category partner as well as a brand partner.“We may be one brand but we never sit still. We are constantly innovating and creating consumer demand across markets.“With Penfolds’ 180th anniversary this year, we are not only celebrating our past but we are taking the opportunity to further establish ourselves as a global luxury icon. And this channel plays a big role in delivering on that vision.”A striking showcase with Lotte Duty Free in Changi Terminal 3Marking 180 years with a vibrant Cannes showcasePenfolds shared its latest innovations and experiences at the recent TFWA World Exhibition as it marked 180 years of the brand with a special focus on travel retail.Highlights included:The City Explorer Pack: A special-edition gift set available as an exclusive gift with purchase, commemorating the brand’s 180th anniversary. Tailored to eight cities, including London, Sydney, Hong Kong and Singapore, the collection reflects Penfolds’ global reach and luxury appeal.Each pack features two single country of origin Bin wines – made up of one or a combination of Bin 169 Coonawarra Cabernet Sauvignon and Bin 150 Marananga Shiraz, both from Australia. Encased in a signature silver suitcase tin adorned with a city-themed travel belt and customisable luggage tags, the City Explorer Pack launches in December, celebrating Penfolds connection to many sought-after destinations.Digital Sommelier 2.0: Building on the success of its original launch in May 2023, the Digital Sommelier was reintroduced at Cannes in a dynamic, visual-led format. This upgraded tool enhances the wine selection process for travellers with an interactive, gamified experience that boosts engagement and enjoyment.Featuring a modernised user interface with refreshed gamified elements and fun on-screen motion, the Digital Sommelier 2.0 is designed to make exploring the Penfolds’ wine portfolio more engaging and immersive.Wine Charms: Penfolds offered an exclusive first look at its forthcoming Wine Charms, luxury accessories designed to elevate the at-home wine experience.A wine-tasting experience: One of the event highlights was the Wine Tasting Experience, where guests were guided through several landmark Penfolds releases.Led by Penfolds Brand Ambassador Toby Amphlett, the tasting featured wines such as 2008 Bin 169 Coonawarra Cabernet Shiraz and 2018 Superblend 802.B Cabernet Shiraz, providing a deeper insight into Penfolds’ craftsmanship and legacy.The tasting highlighted the collectability and ageability of these fine wines by allowing guests to experience how they have evolved over time. The 2008 Bin 169, resurrected after its original 1973 vintage, was presented alongside the recent 2019 release, offering a rare opportunity to appreciate the wine’s enduring quality and evolution.Guests also sampled the 2008 Bin 620 Cabernet Shiraz, which offered more context for the Superblend series and culminated in the tasting of the 2018 Superblend 802.B – a release poised to become a collector’s favourite, said Penfolds. ✈This interview was first published in The Moodie Davitt eZine, Issue 340. Click here for access.A Penfolds experience at TFWA World Exhibition, including the City Explorer series below