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: https://read.dmtmag.com/i/128596
EDITOR'S NOTE What, Me Worry? S ometimes I get requests for interviews from news reporters, and when inquiring about trends in the spirits industry, they always seem to ask if the vodka category is still growing. After years of parroting the same answer, I've been tempted lately to ask right back, "Does a bear….in the woods?" Because it seems that if the sun comes up in the morning, then vodka sales will keep increasing. It's quite amazing now, to see how consumers are flocking to the latest flavor craze, the apparent avalanche of so-called "dessert" flavors, and how producers are creating a wide variety of inventive cocktails with which to present these new flavored vodkas. Now comprising at least one-third of all U.S. spirits consumption, the vodka category continues to accelerate into lofty territory (see "Vodka's Sweet Success," beginning on page 16). You hope it will continue, but some nagging thoughts keep creeping into your mind. Will vodka facings reach their physical limitations in retail stores (even after squeezing out the slower-moving categories)? Will the cannibalization of brands become a serious problem? Will the fickle American consumer wake up one day and decide to anoint another spirit, let's say Scotch or bourbon, as King, and send vodka back to Eastern Europe and the Russian steppes from where it emerged? Not likely, my friends. If the beverage alcohol industry didn't consider vodka almost a sure thing, my Inbox wouldn't be stuffed with emails announcing the newest vodka brand or flavor coming to market. These things are sprouting like mushrooms in a dense forest. But what's not to like? Everybody's making money and consumers are happy. Yippee! It's like my old hero, Alfred E. Neumann of Mad Magazine fame, used to say, "What, Me Worry?" Indeed, flavored vodkas have been with us for quite some time and are arguably the main driver of category sales gains (the entire category grew 5.6% in 2012, to a total of 70.2 million 9-liter cases, a haul that might even make Al Capone blush). Maybe the Rosetta Stone of spirits sales has become flavor. It's not an overnight phenomenon; it's been gathering momentum since the 1990s, at least. In fact, during the past two years, flavored bourbons and whiskeys have made a serious impact on the U.S. market, and more are on the way. And then there are the many spiced and flavored rums that have tremendous appeal for American consumers, and more of those are on the way too. Is there such a thing, though, as too many flavors? Maybe yes, maybe no. But it seems as if producers might be reaching further and further afield for unique flavor combinations. Naturally, it's great if it works. Strangely enough, I'm reminded of the Internet bubble of the late-1990s and early 2000s. All of a sudden, anybody with an idea and a three-page business plan was getting millions of dollars thrown at them. Scores of these companies went public, and the vast majority of them were out of business in a few years. In the end, I guess, things will shake out one way or another. In the meantime, pass me that bubble gum-flavored vodka. My jaws are tired of chewing. Richard Brandes, Editor-in-Chief 6 • Beverage Dynamics • www.beveragedynamics.com • May/June 2013 Executive Vice President and Group Publisher Charles Forman Tel: 845-426-6072 Fax: 845-426-6423 email: cforman@specialtyim.com Editor-in-Chief Richard Brandes Tel: 212-353-3832 Fax: 212-353-8214 email: rbrandes@specialtyim.com Managing Editor Jeremy Nedelka Contributing Editors Dan Berger Harriet Lembeck F. Paul Pacult Robert Plotkin Michael Sherer Cheryl Ursin Vice President of Sales, Associate Publisher Anthony Bongiovanni tbongiovanni@specialtyim.com Senior Regional Sales Manager Mark Marcon mmarcon@specialtyim.com Senior Regional Sales Manager Debbie Rittenberg drittenberg@specialtyim.com Art Director Adam Lane Senior Research Analyst Adam Rogers List Rental Manager Cheryl Naughton R E TA I L E R E D I T O R I A L A D V I S O R Y B O A R D Charles Bailes III ABC Fine Wine & Spirits, Orlando, FL Ralph Bondon Berbiglia's, Kansas City, MO David Breitstein Duke of Bourbon, Canoga Park, CA Jim Shpall Hal Gershman Applejack Liquors, Wheat Ridge, CO Ron Junge Ted Farrell Burt Notarius Charles Sonnenberg Brown Derby Stores, Springfield, MO Happy Harry's Bottle Shop, Grand Forks, ND Haskell's, Minneapolis, MN Premier Liquors, Kemmore, NY Frugal MacDoogal's, Nashville, TN Beverage Dynamics is published by Specialty Information Media Editorial and executive offices at 17 High St., 2nd Fl., Norwalk, CT 06851 Telephone: (203) 855-8499 Fax: (203) 855-9446 E-mail: rbrandes@specialtyim.com