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.
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Straight Vodka 28 Beverage Dynamics • May/June 2015 www.beveragedynamics.com Liquor Locker. He cites Tito's and Deep Eddy, both Texas vodkas made from corn as prime examples. New to the gluten-free fray is General Beauregard Dixie, a hand-crafted vodka produced in Charleston, S.C., which is six times distilled from 100% American corn and touts its wheat-free status. However, notes Smith, "Personally, I think if you distill a spirit made from wheat enough times there shouldn't be any problem with gluten." Allen at All Star is a big proponent of New York State spirits, with a sepa- rate section devoted to local heroes. "We carry a number of craft vodkas," says the retailer, citing Lake Placid P3 Vodka and 46 Peaks Vodka, Comb Vodka (made from honey) and Core Vodka (made from apples). "Consumers are getting away from national brands in favor of small independents, which is fueling vodka growth," Allen says. "People taste them at a farmer's mar- ket or a state fair and then call us looking to buy them." Overall, say the major players in the straight vodka category, the future looks bright. "Vodka grew signifi - cantly in 2014, espe- cially at the high end," says Cohen at Patron, "and 2015 should be no different." "The premium and above segments in vodka are growing far faster than the lower price tiers," says Campari's Luchini, who predicts: "The vodka category will continue to be a dog fi ght in 2015." BD LEADING BRANDS* OF UNFLAVORED VODKA (Percent Change) Brand Supplier % Chg Smirnoff Diageo -0.9% Absolut Pernod Ricard USA 5.5% Svedka Constellation Brands 1.8% Grey Goose Bacardi USA 2.6% Skyy Campari America USA -0.2% Pinnacle Vodka Beam Inc. 2.0% Burnett's Vodka Heaven Hill Brands 4.1% New Amsterdam E & J Gallo 39.4% Tito's Handmade Fifth Generation 83.3% Ketel One Vodka Diageo/Nolet Spirits 1.1% (*) Ranked by overall sales. Source: The Beverage Information & Insights Group estimates. MORE ONLINE: For additional information on straight vodkas, including commentary from Smirn- off and Sobieski, visit www.beveragedynamics.com. L ately there has been some debate about the impact of the tur- moil in Russia on vodka in the U.S. market. Certainly, Russia has had its share of problems: strife in the Ukraine, political sanc- tions and a collapse of the ruble due to falling oil and gas prices. Many of the brand reps we queried on this topic replied, nyet, no comment, or downplayed any consequences. "We have not seen the situation in Russia impact New Amster- dam's business," declares Gerard Thoukis, senior director of marketing for New Amsterdam Spirits. Others pointed out that vodkas are produced in a number of countries outside of Russia—Poland, Sweden, France and the U.S. "The geo-political climate only serves to reinforce our desire to find sustainable solutions for everything from entertainment to vehicles to clothing here at home," comments Nicole Portwood, vice president of brand marketing for Tito's Handmade Vodka, which, of course, is made in the USA. David Ozgo, senior vice president of Economic and Strategic Analysis for the Distilled Spirits Council, put the matter into perspec- tive. "Russian imports have never been a very big part of the U.S. vodka market," he explains. Even going back to the early 2000s when vodka sales were growing rapidly, Russian impor ts were never more than 2 million cases in the U.S. market. While they have dropped down to around 400k today, the decline also corresponds to the period where whiskey volumes started to grow rapidly. "Thus, it would be difficult to claim that the decline in Russian vodka has to do with turmoil in Russia." BD ALL'S QUIET ON THE RUSSIAN FRONT