VODKA | AMERICAN MADE
stablemate Burnett ’ s , agrees . “ The biggest challenges are continuing to stand out in the crowded vodka market , and being smarter on a packaging and marketing perspective . We have a very loyal consumer base , but it ’ s important to be relevant and create awareness among new users to the category .”
Black says even though a lot of growth is coming from the brands with higher prices , some of the imports have been taking aggressive price cuts . “ We have to be very conscious of our pricing strategy on a state-by-state basis to make sure the value proposition is there for consumers .” With many retailers using vodka as a loss leader to bring consumers into stores , it ’ s a hard fight , he adds .
PRODUCT PROMOTION Locally produced brands are poised to take small bites out of the growing market as well . At Jubilation , vodkas produced in Albuquerque or Santa Fe are breaking into the top five of domestic vodka sales , in some cases outpacing massive brands like Ketel One and Absolut .
That competition has made brand reps more aware of retailers ’ needs in terms of promotional activity . Says Sachs , “ Larger retailers are going to look for brands with pull off the shelves that consumers are looking for , and they ’ ll be themselves promoting local brands . You see craft has taken a foothold in local markets , and they don ’ t have any tolerance for brands that don ’ t sell .”
What retailers desire depends a lot on the channel , he says . “ The grocery channel wants things to be engaging to the consumer , like cocktail and drink recipes and menus and other added value to get consumers to interact with the brands . Liquor stores want pieces that will stand out over a longer term .”
New Amsterdam has been working on its “ Pour Your Soul ” ad and marketing campaign , launched around the NBA Finals in June , which Sachs says is expected to be a long-term platform .
For category leader Smirnoff , there ’ s a return from the flavor frenzy to a focus on the classic brand , says Johanna Rogers , senior brand manager .
“ Today , more consumers are looking for a quality vodka at an affordable price ,” she says . “ This is great news for Smirnoff as the brand ’ s base vodka – Smirnoff No . 21 – is tasteless , odorless and smooth , just as any quality vodka should be , while remaining at an affordable price point . This year , Smirnoff is focusing on highlighting Smirnoff No . 21 as a quality , affordable vodka , as well as spreading the word that Smirnoff is ( in fact ) American-made .”
Promotional campaigns are crucial to most leading brands . “ They are hugely important for us ,” says Tito ’ s VP of trade marketing Frank Polley . “ We use them to create meaningful conversations with our customers . Whether it ’ s a ‘ text to donate ’ to a local charity campaign or a fun brand item up for grabs , our retailers and the promotions they are able to implement afford us the opportunity to connect with our customers .”
LEADING BRANDS OF DOMESTIC VODKA , 2014-2016
( 000 9-Liter Cases ) |
|
|
|
|
|
|
15 / 16 |
Share of |
Brand |
Origin |
Supplier |
2014 |
2015 |
2016 |
% Chg |
Category |
Smirnoff |
USA |
Diageo |
9,310 |
9,450 |
9,402 |
-0.5% |
19.6 % |
Tito ' s Handmade Vodka |
USA |
Fifth Generation |
2,200 |
2,785 |
3,800 |
36.4 % |
7.9 % |
New Amsterdam |
USA |
E & J Gallo |
2,480 |
2,715 |
3,602 |
32.7 % |
7.5 % |
Burnett ' s Vodka |
USA |
Heaven Hill Brands |
2,608 |
2,860 |
2,902 |
1.5 % |
6.1 % |
Skyy |
USA |
Campari America USA |
2,805 |
2,835 |
2,800 |
-1.2% |
5.8 % |
Barton Vodka |
USA |
Sazerac |
2,110 |
2,150 |
2,125 |
-1.2% |
4.4 % |
Skol Vodka |
USA |
Sazerac |
1,987 |
1,955 |
1,910 |
-2.3% |
4.0 % |
McCormick Vodka |
USA |
McCormick Distilling |
1,846 |
1,738 |
1,702 |
-2.1% |
3.6 % |
Fleischmann ' s Royal Vodka |
USA |
Sazerac |
1,460 |
1,485 |
1,460 |
-1.7% |
3.0 % |
Seagram ' s Vodka |
USA |
Infinium Spirits |
1,135 |
1,272 |
1,353 |
6.4 % |
2.8 % |
UV Vodka |
USA |
Phillips Distilling |
1,325 |
1,260 |
1,190 |
-5.6% |
2.5 % |
Platinum 7X |
USA |
Sazerac |
835 |
930 |
1,075 |
15.6 % |
2.2 % |
Aristocrat Vodka |
USA |
Heaven Hill Brands |
1,059 |
1,021 |
1,006 |
-1.5% |
2.1 % |
Deep Eddy |
USA |
Deep Eddy Distillery |
455 |
705 |
1,000 |
41.8 % |
2.1 % |
Kamchatka |
USA |
Beam Suntory |
850 |
812 |
808 |
-0.5% |
1.7 % |
Total Leading Brands |
|
|
32,465 |
33,973 |
36,135 |
6.4 % |
75.5 % |
Others |
|
|
12,850 |
12,487 |
11,740 |
-6.0% |
24.5 % |
Total Domestic Vodka |
|
|
45,315 |
46,460 |
47,875 |
3.0 % |
100.0 % |
Total Vodka |
|
|
72,015 |
72,760 |
74,305 |
2.1 % |
|
Source : The Beverage Information & Insight Group ' s Liquor Handbook 2017 . For more information , visit www . BevInfoStore . com .
30 StateWays | www . stateways . com | September / October 2017