AMERICAN VODKA
WILL INCREASED TARIFFS IMPACT THE VODKA CATEGORY ?
As of this writing , the global tariff situation is very much in flux . Economists ’ opinions vary widely on what the affects will be — on any commodity or nation .
But already , the EU has slapped a 25 % tariff on American whiskey and bourbon . That has American producers worried . Will other spirits also feel the effects of a trade war ?
Much could be at stake . Last year , DISCUS projected a new export record of $ 1.63 billion of U . S . spirits sold around the globe , up 14.3 percent . Consumer tastes for premium American spirits and favorable exchange rates had helped drive global sales .
American vodka brands could encounter difficulties exporting to the global market . On the other hand , tariffs may cause prices of imported vodkas to rise . Are domestic brands poised to take any price advantage they might have over imports ? Or will drinkers remain loyal to import brands ?
“ Some customers will stay loyal to the brand , or stay with it because it is a good-tasting vodka ,” says Nathan Ruiz at Sodie ’ s Wine & Spirits in Fort Smith , Arkansas . But he adds , “ Most of the customers that care about the price and the taste will probably look for a vodka around the same price range .”
“ Domestic brands are very well positioned to take price advantage over imports ,” says Melanie Batchelor , vice president of marketing for Campari America . “ More than ever , Americans are focused on purchasing products made in the U . S . that are high-quality , have authentic stories and match their personal values . SKYY is perfectly positioned to take advantage of this .”
Drinks giant Diageo is closely monitoring the situation . “ We continue to assess the potential impact of the decision by a number of U . S . trading partners to impose duties on a list of American-made products ,” a Diageo spokesperson says . “ We hope that decision-makers will work towards a sensible outcome that will maintain an open and transparent global trading system , as the current level playing field for spirits boosts trade , enhances consumer choice and stimulates investment and job creation .”
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tered , which results in a clean , crisp taste , according to Sachs .
“ Consumers are becoming more interested in the authenticity and story behind brands ,” says Lauren Cherry , communications manager for Heaven Hill Brands . Deep Eddy ’ s brand story has an authentic Austin heritage and portrays a uniquely American lifestyle . Burnett ’ s Vodka is a quintessential family-owned and -operated ed company . Burnett ’ s Vodka just underwent a major rebrand for the first time in 25 years , including a redesign of the bottle and package .
“ Historically , there has always been a comparison to Russian vodka , but I think these ideas are fading with the millennial generation ,” says Lyndsey Reimers , brand manager at Phillips Distilling , whose portfolio includes Prairie Organic and UV vodka brands . “ As with all things , ‘ Made in the USA ’ carries a strong point of difference .”
RAISING THE FLAG “ Brands that focus on their American heritage are a sub-segment that is leading the growth of vodka ,” Robertson says . American Anthem Vodka , as the name implies , boasts a strong connection to flag and country . Indeed , the label incorporates the Stars and Stripes motif and announces “ Proudly Made in America .” Social media taglines include “ Salute the American Spirit ,” “ Celebrate the American Spirit ” and “ Rekindle the American Spirit .”
“ We wanted to leverage the fact that American-made was a big interest in the category , as well as a value proposition ,” says Robertson about the strategy behind the brand launch . “ To create a broadly appealing vodka that was authentically American-made that offered premium quality and great value to consumers .” American Anthem Vodka is made from corn grown in Iowa and Indiana and the liquid is five times distilled . “ It is also gluten-free , which is important for a lot of consumers ,” Robertson notes .
“ We couldn ’ t be prouder to be distilled in America and we absolutely lean into our American heritage in everything we do ,” says Batchelor about Skyy Vodka . Recently the brand launched its “ Proudly American ” marketing campaign , which juxtaposes famous phrases from American history - such as “ Home of the Brave ” - with imagery featuring people who celebrate diversity .
“ Smirnoff is proud to be made in America since 1934 and we proudly emphasize our American heritage in the brand story and marketing efforts ,” Shah says . The Smirnoff No . 21 “ Only the Best For Everyone ” campaign features actor Ted Danson , which highlights how Smirnoff is made in America and touches on the affordable price and high quality of the vodka .
A few American-themed vodka brands take the additional step of lending a helping hand to military personnel and veterans .
On the top of American Anthem ’ s label , for example , is a star and chevrons with the words “ Celebrate . Give Back ,” and the explanation that “$ 1 per bottle made is donated to support military personnel and their families .” Explains Robertson : “ Since this is truly an American-made brand , what better way than to celebrate the American spirit than to partner with organizations that help the true heroes who serve
StateWays | www . stateways . com | September / October 2018
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