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/777147
Imported Vodka 20 Beverage Dynamics • January/February 2017 www.beveragedynamics.com To reach consumers, especially those younger LDAs, and increase their market presence, imported vodka brands are bor- rowing a few pages from brown spirits and the American craft boom, then broadcasting messaging via social and other digital media about brand authenticity and product provenance. "In the past, the term 'imported,' was a key differentiator of luxury or premium because it came from abroad; there was a certain allure," says, Nicolas Guillant, president Marie Brizard Wine & Spirits Americas, whose portfolio includes the Sobieski Vodka brand. While the concept of imported still has resonance for American consumers, he says, that is no longer enough. "The liquid inside the bottle is what counts." "Designations like craft or imported can be an element of a brand's identity, but such designations alone do not drive sales anymore," says David Ozgo, senior vice president for Economic and Strategic Analysis for the Distilled Spirits Council. "Con- sumers today are too sophisticated and demanding. Consumers are looking for authentic, quality products that deliver unique experiences. Craft or imported brands might get the consumer's attention initially, but there has to be more to a brand than a category designation if it is going to be around for long." BONA FIDES The enthusiasm and embrace of all things whiskey have trained interested consumers to delve into the details of authenticity and provenance of the brown spirits they drink. Imported vodka producers are hoping this inclination will translate to white spir- its as well. "There are some things we can borrow from the Amer- ican craft brands, since the source of origin has become in- creasingly important to consumers: they want to understand where products come from and to feel connected to those communities," says Nick Guastaferro, brand director for Ab- solut Vodka. The vodka was fi rst produced in 1879 and is still made in Ahus, Sweden. "Millennial consumers are continuing to crave transparency, so there is a continued shift towards authenticity in the Ameri- can spirits market for imported and domestic brands," says Phil- lip Pearson, brand manager at Diageo North America, whose portfolio includes Ketel One and Ciroc. The Ketel One brand is produced in the Netherlands by the Nolet Family, whose partic- ipation goes back for 11 generations and over 325 years. To tell that story more vividly, in November Ketel One launched a marketing campaign called, "You Don't Understand, It Has To Be Perfect," which playfully pokes fun at the attention to detail and great lengths the Nolet family takes to keep Ketel One Vodka perfect, as well as the brand's ancient heritage. The campaign included TV ads and eight short videos. To further immerse consumers in the Ketel One experience, during the holiday season, more than 80,000 limited edition Ketel One virtual reality viewers were included in value-added packaging of 1.75-liter bottles. With that technology and their phones, consumers could access views of the distillery, pot still and bottling room, explanations of the process and cocktail-mak- ing experiences. TRACING ORIGINS Hand in hand with authenticity is provenance. Revelations about non-distiller producers in the whiskey category have led to questions about all aspects of spirits sourcing and ingredients. "In vodka, and across spirits and wines in general, there is a huge recognition for provenance of product and the renowned history and expertise in certain regions of the world," says Tom Swift, global vice president for Grey Goose Vodka. The brand, of course, is made in France, a country with centuries of fi ne-wine and spirit-making expertise, he points out. Consumers need to be cautious about the term "imported" on the label, say category players. "Some vodkas that say they are imported are really just bottled in the U.S. from imported juice," Guillant says. For its part, Sobieski Vodka is made and bottled in Poland. It is produced from Polish Dankowski rye grain and water from the nearby Oligocene springs. "Those are important points for consumers," he adds. "The ingredients story is central to our quality story," says Guastaferro about Absolut. Everything in the vodka—including the bottle—is produced from within a 75-mile radius. The com- pany has long-term relationships with the farmers who grow the wheat for its vodka, and water is sourced from an aquifer near the distillery. The brand will dial up that messaging this year. "With food, people are familiar with the farm-to-table concept; now they are beginning to consider the idea of farm-to-bottle." "We are just a small, family-owned distillery in Krzesk, Po- land," says Dana Chandler, COO/executive vice president/ general manager for Chopin Imports LTD. The Dorda family acquired an historic 19th-century distillery in 2003. The majority of the ingredients—potatoes, rye and wheat—for Chopin Vodka are sourced from within 25 miles of the distillery. The Dordas have worked with many of the same family farms for decades. Now the company has started to grow some of its own potatoes.