Stateways

Stateways May-June 2013

StateWays is the only magazine exclusively covering the control state system within the beverage alcohol industry, with annual updates from liquor control commissions and alcohol control boards and yearly fiscal reporting from control jurisdictions

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"Vodka is an extremely dynamic category in the U.S. market; it continues to move up strongly, tirelessly and shows no signs of slowing down," points out Leonid Yangarber, CEO of Russian Standard USA. "Vodka is very versatile, which makes it accessible for many types of consumers, males, females, different age groups. The strength of the category is remarkable." The top 10 leading vodka brands notched a solid 4.2% increase in 2012, to 36 million cases, which is well over half of the total category volume, according to Beverage Information Group's 2013 Handbook Advance. Perennial category leader Smirnoff grew 2.0% to 9.9 million cases. The big winner was Pinnacle, now owned by Beam Inc., with an astounding 18.5% bump last year. Burnett's Vodka was another stellar performer, breaking the 2 million case mark in 2012, with 10.2% volume growth. Also enjoying above-average increases were Ketel One and Barton Vodka; both brands grew 4.7% in 2012. New and Notable he chief characteristic of the vast vodka category is innovation and product churn. A number of contenders are launching new and noteworthy products into the marketplace. One of the more unusual products to debut is Absolut Tune, a sparkling wine-vodka fusion. "Absolut Tune is a real breakthrough proposition, a hybrid and the best of both Smirnoff Root Beer worlds, encompassFloat is among the ing the glamour of latest flavor additions to the leading Champagne and vodka's portfolio. energy of Absolut," enthuses Maxime Kouchnir, VP Vodkas for Absolut parent Pernod Ricard USA. Consumer response is extremely positive, says Kouchnir. Tune received a strong PR launch and extensive sampling. "Absolut Tune is versatile, ideal for a casual brunch, at a high-energy party, in the clubs or for entertaining at home." If that weren't enough, this spring Pernod Ricard launched Absolut Elyx. "Elyx," which means "luxury" in Swedish, is a true luxury proposition, T 26 Absolut Vodka has been recently busy bringing new expressions to the U.S., including Absolut Tune, a sparkling wine-vodka fusion product; Absolut Mexico, a new vibrantly designed limitededition expression; and Absolut Hibiscus, adding a new flavor to the brand's portfolio. declares Kouchnir. The liquid is made from grain sourced from an estate near the distillery in Sweden, which is blended with soft and naturally filtered water, and hand-crafted in an authentic 1929 copper rectification still. Due to the small quantity of production, Absolut Elyx will receive selective distribution. "Clearly we see there is an appetite for handcrafted, single-estate products," says the VP. Continuing the tradition of limited-edition bottle designs, Absolut Mexico is available in the U.S. for the first time after its debut in Mexico last year. The design was created in partnership with renowned Oaxacan artist Dr. Lakra, aka Jeronimo Lopez Ramirez. The art celebrates three legendary icons from ancient Mayan culture—Hurakan (Hurricane), Kukulkan (Serpent) and Balam (Jaguar). Heaven Hill Distilleries, which owns the Burnett's marque, is launching a premium brand, High Rise Vodka, this June in 11 select markets. High Rise Vodka is made from winter wheat grown in the Finger Lakes region of New York and the pristine limestone water that flows through the glacial soils of that landscape; the liquid is distilled five times to produce an aromatic and creamy vodka. Priced $12.99 for 750 ml, the brand debuts an 80 proof flagship plus Cherry and Citrus flavors. "We have wanted to enter the premium segment for a long time," reveals Reid Hafer, senior brand manager for Heaven Hill. High Rise Vodka, she says, has retro flair and a fun-loving personality, evoking the spirit of the good life. The High Rise Vodka label designs capture fun-loving and fashionable social settings, from a rooftop cocktail party with suits and fedoras to a penthouse with martinis and shakers Pinnacle has seen phenomenal growth driven by its dozens of flavor extensions; the latest are Rainbow Sherbet and Strawberry Shortcake. StateWays I www.stateways.com I May/June 2013

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