Beverage Dynamics May 2023 | Page 19

Tequila want fun and uncomplicated drinks they can make at home with just a few quality ingredients .”

“ Overall , vodka ’ s superpower of versatility , mixability and wide-ranging suitability meet emerging consumer needs and continue to drive growth ,” Azqueta adds .

To his point , it greatly helps that the martini is such a versatile drink .

“ We ’ ve seen a lot of experimentation happening , with the Dirty Martini lately using different liquids to that touch of savoriness that makes it so iconic ,” says Jean-Marie Heins , Chief Marketing Officer of Broken Shed Vodka . “ The martini is still at the top of the list .”

VODKA PREMIUMIZATION RTD and cocktail trends have both fueled premiumization in vodka , which remains critical for the category ’ s continued success and growth .

“ The vodka category has not premiumized as quickly as other spirits categories over the last few decades , but this has changed in recent years ,” says Azqueta of Grey Goose . “ Curren Goodden Associates noted that the premium spirits tier of the market took a 40 % share of sales by value in February 2022 , with super-premium following just behind at 18 %. The ultra-premium segment had grown sales by 180 % year-over-year ( Nielsen ). This shows that not only is vodka becoming more popular in the on- and off-premise , but also that premium vodkas such as Grey Goose are driving the growth .”

Premiumization , in general , has been a boon for the industry . Even as the U . S . economy took hits from the pandemic , inflation and the recession that we may or may not be living through , or about to enter , consumers have remained interested in top-shelf alcohol as an affordable luxury .

“ Premiumization continues to drive volume in all segments of beverage alcohol ,” says Mike Ginley , President NV Group USA , producers of Smoke Lab Vodka . “ In 2022 , total spirits volumes were up + 2 %, with premium + up + 13 %. This trend holds true in the vodka category as well ; however , the upper end of trade-up is lower than that of the tequila and bourbon / whiskey categories .”

What exactly is premium vodka ? It takes many forms . One area where consumers are willing to spend more is for flavored variants .

“ Flavored vodkas are anticipated to maintain strong growth with expected CAGR of 4.5 %,” says Ginley . “ Within the flavored segment , consumer interest in natural and authentic flavors — spice , herb , citrus , vegetable — continues to gain traction .”

Diageo tapped into this trend with the 2020 launch of Smirnoff Spicy Tamarind , and 2023 roll out of Ciroc Honey Melon .

“ Smirnoff Spicy Tamarind is the perfect balance of sweet and spicy , giving an unexpected twist to classic cocktails like the margarita ,” says Yufe . “ Fruit flavors , in specific , have become the most-preferred flavors in alcoholic beverages . With more than 15 flavor innovations to date , Ciroc is proud to continue to provide consumers delicious and new flavors , with the most recent launch of the latest limited-edition flavor , Ciroc Honey Melon . Ciroc will continue to lead with innovation , as seen with Ciroc Passion .”

“ Another major trend we ’ ve seen is the return of tart flavors that are perfect for warm-weather months , showcasing the versatility of the vodka category ,” Yufe adds . “ We ’ ve introduced a range of fun

Vusa Vodka Co-founders Chris Frederick and Damola Timeyin .

and exciting flavors within our line of Smirnoff Lemonades , like Pink Lemonade and Peach Lemonade , and just debuted Smirnoff Blue Raspberry .”

“ Over the years , there has been very little innovation and disruption in the vodka category , which is where White Claw comes in ," says Faustinelli . " In 2020 , the regulatory body governing alcohol in America ( TTB ) changed the rules to allow distinction and character into the category . This allowed us to create our new triple wave filtered vodka , which uses the pressure of three 30-foot waves to produce an entirely differentiated product , and create a vodka unlike anything else on the market , one that you would sip neat at room temperature in a champagne flute .”

“ We believe that within a very short order , we could be a top 10 vodka brand in the country , ultimately a top three brand ,” Faustinelli adds .

QUALITY AND AUTHENTICITY Other characteristics that provide premiumization in vodka include “ better-for-you ” ingredients , a sense of provenance and brands that share consumer values .

“ Consumers are more invested than ever in seeking out products with all-natural , high-quality ingredients , and the vodka category is no exception ,” says Azqueta of Grey Goose . “ Grey Goose Essences , our line of vodkas infused with real fruit and botanical essences , is

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