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/64274
A Clear Winner Vibrant vodka is the biggest and most exciting spirits category today, with vigorous sales and innovative products. V "V By Thomas Henry Strenk odka is not only the biggest spirits category, and one of the fastest-growing, it is by far the most exciting, churning with new brands, new products, and perhaps, most importantly, new innovations. Indeed, vodka's vigor is the chief driver in the U.S. spirits mar- ket. Stats indicate the category is seeing a return to premiumization. In terms of innovation, vodka sets the bar high, not only with a palette of flavors encompassing whipped cream, peanut butter & jelly and wedding cake, but also in emerging subcategories such as organic, brightly colored, kosher and low calorie. There's a vodka to appeal to every consumer — and that's the category's biggest appeal. Behemoth odka is still the most exciting category in the world and specifically the U.S. market with growth in every part of the category, at the bottom, middle and the top," declared Charles Gibb, president of Belvedere Vodka. Despite the lingering recession last year, the category grew a robust 6.0% in volume, to 65.85 million 9-liter cases, according to the Handbook Advance 2012, pub- lished by the Beverage Information Group. Vodka now accounts for nearly one-third of all spirits volume, and at least 25% of all spirits revenues. "Vodka continues to be the king; it's a behemoth," said Jason Daniel, brand director for Skyy Vodka and Campari, for S.F.-based Campari America. "Vodka is the number-one liquor category at our store, it accounts for about 30% of our business," reported Bob Pearson, manager of the downtown store of Crown Liquors, a 20-store chain based in Indianapolis, IN. He added, "It seems like there's a new vodka coming out every week." Naturally, his observa- tions are echoed by retailers across the country. Star Labels L ighting up the vodka firmament are a number of rising stars as well as solid performances from established labels. Indeed, the top 10 brands out- performed the category; the group was up 6.3% in volume, to a projected 34.6 million 9-liter cases, according to the Handbook Advance 2012. Among the stellar performers: Swedish import Svedka boosted sales in 2011 by nearly 400,000 cases to just under 3.7 million cases, an 11.8% increase. Value- priced Burnett's sales jumped 10.2% to over 1.67 million cases in 2011, that growth fueled by 26 flavors, includ- ing a new Blue Raspberry, and two more just-released flavors: Burnett's Pear Vodka and Burnett's Sugar Cookie Vodka. Breaking the million-case mark for the first time (1.1 million cases) is French import Ciroc; the superpremium grape-based vodka increased sales by 38.4% last year, thanks in part to flavors Red Berry, Coconut and Peach. Value-priced Sobieski sold 950,000 cases in 2011, up 24.2%. "The brand is doing extremely well, awareness is climb- Absolut Cherrykran, which features rich cherry flavor combined with notes of white cranberry and sweet plum, has just debuted in the market. 20 • Beverage Dynamics • www.beveragedynamics.com • May/June 2012