Beverage Dynamics is the largest national business magazine devoted exclusively to the needs of off-premise beverage alcohol retailers, from single liquor stores to big box chains, through coverage of the latest trends in wine, beer and spirits.
Issue link: http://read.dmtmag.com/i/303900
Clear Profit 20 Beverage Dynamics • May/June 2014 www.beveragedynamics.com permutations, but which shows no signs of relenting, now accounts for approximately 24% of all vodka sales. Still, Rob Bralow, manager and wine buyer for Blue Streak Wines & Spirits in New York's Long Island City, thinks some stiff compe- tition in the form of brown spirits is fi nally making a dent in vodka's massive appeal. "Whiskey has become the hottest category, primar- ily with new artisanal brands but also with line extensions from ex- isting brands leading the market," he says. "In addition, homemade cocktails are gaining in popularity, using bitters and different alco- holic ingredients, therefore stealing market share from traditional vodka drinks." The fact that the already saturated vodka category—one clut- tered with all these imaginative fl avor hybrids, as well as celebri- ty-endorsed newcomers, small-batch craft fi nds and reinvented classics—continues to thrive amid internal and external competition is compelling. In the world of vodka, this race to the top isn't off-put- ting; in fact, it's an invitation for ambitious new rollouts and activa- tions. Make it, both distillers and marketers know, and the vodka lovers will come—no matter how many new options (or alternative spirits) they must contemplate in the process. THE IN CROWD The ability to stand apart from all those bottles is a signifi cant mark of a brand's success. One way that Pernod Ricard's famed Swedish vodka, Absolut, has been able to differentiate itself from the pack is through its limited-edition City Series, which launched in 2007 with an ode to New Orleans in the form of mango and black pepper-fl a- vored vodka. Los Angeles, Boston, Brooklyn, San Francisco, Miami and Chicago iterations followed, each with an originally designed bottle that beckoned from retail shelves, and in 2014 it's the Lone Star State's turn. Absolut Texas melds the fl avors of bright cucumber and fi ery Serrano chile, and according to Absolut brand director Afdhel Aziz, this annual creative ritual represents an "aspirational approach in keeping with the premium-ness of the Absolut brand. "Absolut launched Absolut Peppar in 1986 and Absolut Citron in 1988, and the brand is considered a pioneer within the fl avored vodka category," Aziz continues. "However, fl avored vodka is one of the most competitive sectors within spirits, with a new product launched almost every other day." How does Absolut navigate that kind of pressure? By emphasizing what makes the brand unique. To corroborate Bralow's point that sugary additives are giving con- sumers cause for concern, Aziz singles out one particular point of interest: that Absolut fl avored vodkas are made from a base of nat- ural ingredients. "We believe that the fact no sugar is added is a real differentiator, especially for health-conscious consumers," he says. As the second best-selling vodka in the U.S., Absolut registered sales of 4.44 million 9-liter cases last year. Stoli, now on its own [Stoli USA] after a run in the William Grant portfolio, is another renowned brand with an impressive industry Top-selling vodka Smirn- off continued introducing new fl avor expressions to the market, including this Cinna-Sugar Twist. Absolut added to its fl avor lineup last year with Absolut Cilantro. The new Stoli USA now has responsibility for the importing, marketing and distribu- tion of Stolichnaya Vodka and its fl avors. Svedka, which is nearing sales of 4 million 9-liter cases nationally, recently launched two new fl avors: Svedka Strawberry Lemonade and Mango Pineapple. The fact that the already saturated vodka category—one cluttered with all these imaginative fl avor hybrids, as well as celebrity-endorsed newcomers, small-batch craft fi nds and reinvented classics—continues to thrive amid internal and external competition is compelling.