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march 2010

Vodka Vodka Vodka


opinions in the US Packaging
Insider views from Premiums pause Getting to the bottom
around the trade p14 for thought p16 of the bottle p20
Contents

Quietly
16Supplement Editor David Longfield Market Overview confident
C
+44 (0)1293 590045 6 Vodka rides out the storm
david.longfield@drinksint.com The Euromonitor International team of Spiros olourless and (broadly speaking)
Managing Editor Christian Davis Malandrakis and Jeremy Cunnington analyse how neutral in flavour it may be, but
+44 (0)1293 590047 this quintessential water of life has fared through vodka is far from uneventful. While
christian.davis@drinksint.com the deathly economic climes of the last year the world has been reeling from the
News & Website Editor Lucy Britner aftershocks of the 2008 financial meltdown, some
+44 (0)1293 590046 of the major spirits categories have felt the impact
lucy.britner@drinksint.com News & Launches of consumers turning away from ostentatious
Production Editor Jaq Bayles 9 Round up spending on the top-end juice, particularly in the
+44 (0)1293 590048 The Drinks International team highlights the on-trade environment.
jaq.bayles@drinksint.com latest brand activity from the world of the pre- But vodka has all the bases covered, and the
Designer Neal Honney eminent white spirit increasing segmentation of the market (“low-
Advertisement Manager premium” anyone?) appears to be cushioning
Justin Smith this most profitable of sectors from the worst of
+44 (0)1293 590041 Features the recession.
justin.smith@drinksint.com 14 World of opinion What Diageo might lose in bar sales of Cîroc
Senior Sales Executive It’s the people at the frontline who really know or Ketel One, say, it is just as likely to recoup at
Carmen Poel Francesch what’s going on. David Longfield elicits the the other end as people pick up a bottle of Popov
+44 (0)1293 590042 carmen.poel@drinksint. thoughts of some top bartenders and producers or Gordon’s to drink at home.
com The US market is still the engine, approaching
Sales Executive Renata Stefanovic 60% of total global premium vodka market
+44 (0)1293 590043 16 US Scene share in 2009 (Impact Databank), but the world
renata.stefanovic@drinksint.com It may not be the largest sector but the US is vital to awaits the next brand that will catch on big time
Publisher vodka. Tom Sandham checks out this dynamic market – there’s no shortage of willing candidates.
Russell Dodd And if you want a measure of how seriously
+44 (0)1293 590052 the business is regarded, you need look no further
russell.dodd@drinksint.com 20 Packaging than Stolichnaya. In the long-running dispute
Lucy Britner talks to some top creatives about a over its control, there’s a titanic storm brewing
Drinks International, Gateway Place,
42a East Park, Crawley, West Sussex RH10 6AS
key element of vodka branding: the bottle over this iconic piece of Russian drinks history.
United Kingdom Tel: +44 (0)1293 590040 Meanwhile, with its new Be There digital and
social media campaign, Smirnoff continues to
25 History lead the way as the world’s biggest spirits brand
Hasse Nilsson peers back through the mists of time – showing no signs of slipping
to see how modern day vodka came about back below that 25 million
case mark.

29 Vodka in cocktails
Who is doing what with vodka? Ben McFarland David Longfield
talks to the great and the good of mixing Supplement Editor

March 2010 drinksint.com VODKA SUPPLEMENT Drinks International 3


Euromonitor International alcoholic drinks analysts
Spiros Malandrakis and Jeremy Cunnington decipher
vodka’s performance in the year of the Great Recession

Vodka rides out the

A
celebrated “elixir of the On the other hand, and taking eastern
masses” in its eastern Europe out of the equation, vodka’s
European birthplace and high mixability credentials and vastly
a gleefully endorsed tipple heterogeneous audiences provided for
for the scores of aspiring some defiantly bullish growth rates,
young urbanites hitting city centres even in the midst of one of the most
globally, vodka’s ascent from regional pronounced economic blips in post-war
speciality to international sensation has history. Total volume sales grew by 7%
been stratospheric in its speed and seismic in Asia-Pacific, 8% in Australasia, 4% in
in its impact. the Middle East and Africa, 3% in North
The category’s ubiquitous presence and America, 4% in Western Europe and 2%
iconic status hence came to represent an European markets that acted as a dead in Latin America – loudly reaffirming the
ideal barometer for trends within the weight, dragging global volumes down category’s exemplary resilience in 2009.
spirits industry and beyond. Reflecting with them and presenting a gloomy Nevertheless, resilient as it may be,
the mirror image of a global operating façade for an otherwise still buoyant vodka could not escape trading down,
environment still pretty much in a vodka industry. with value sales growth dropping to
state of disarray and underlining the According to Euromonitor 5% in fixed US$ exchange rates, down
disintegrating economic state of its International, vodka sales in eastern from a CAGR of 7% over 2004-09.
eastern European bastion, vodka posted Europe plummeted by more than 3% in Rampant discounting in the vast majority
a sobering 1% total volume decline in total volume terms in 2009, essentially of core markets was the manufacturer
2009. But things are far better than top- tripling the pace of the category’s and retailer answer to the dawn of the
line figures might suggest. downward growth trajectory, which new era of frugality which momentarily
stood at -1% over the 2004-09 period. derailed the seemingly steadfast
Green shoots beneath the gloom With sales in the region still accounting premiumisation bandwagon that had
While severe recessionary pressures for a mind-boggling 67% of global been largely spearheaded by the category.
formed – quite predictably – a bleak volumes in 2009, it is easy to see why
backdrop and indeed played a major overall performance for the year appears Economic conditions affect
part in vodka’s less than inspiring global skewed towards disappointment. corporate performance
performance in 2009, declines were What’s more, vodka’s demise in eastern The global vodka market remains one
anything but uniform. The core of the Europe originates in the ongoing shift to of the most fragmented of all spirits
category’s problems is regional rather lower abv variants, underlying saturation categories. The top five vodka producers
than financial. issues, evolving westernisation and, last accounted for only 22% of global vodka
Although a number of regions did but not least, the unprecedented depth of sales in 2009, compared with 75%
witness marginal slowdowns or static the financial contagion. In other words, for the top five producers in blended
volume growth compared with 2008, it the landing of the recession only provided scotch. This is in part due to the size of
was the plummeting sales in key eastern the icing for an already deflating cake. the category, but mainly because most

6 Drinks International
Overview

of the world’s largest vodka markets however, are still primarily focused on Top 10 vodka Association was delighted with the
in eastern Europe have little history of their local markets. markets 2004- verdict, which of course has much more
branded products and have been highly As rapidly as these eastern European 2009 far-reaching consequences than putting
fragmented. companies can rise, they can just Market Sizes – Historic an end to the claims of a minor schnapps
This is, however, beginning to change as quickly fall. At the end of 2009, Total Volume (million brand in the UK.
through a combination of merger and Ukrainian-based sixth-ranked Soyuz-
9-litre cases)
acquisition activity, the development of Victan closed down after a couple of UB Group on the rise
2004 2009
large eastern European companies and years of financial problems, while at Eastern Europe has not been the only
Vodka
the dynamic growth of vodka outside the start of 2010 ninth-placed Nemiroff Russia 209.8 163.2
source of rapidly rising companies.
core markets. began to look for someone to invest in it US 45.4 58.1 The rapid growth of vodka outside the
In 2010, for the first time in more than or even buy it completely. Ukraine 37.3 54.7 traditional eastern European markets
a decade, Diageo lost its position as the Both these companies looked for Poland 26.8 32.2 has also meant the rapid rise of certain
leading producer of vodka in volume expansion outside their domestic market Belarus 7.6 14.9 companies from outside the region.
sales terms. This drop to number two of Ukraine, but lacked the resources United Chief among them has been the Indian-
Kingdom 8.6 11.3
came about from fourth-placed CEDC to push it through. Their plight has focused UB Group. The company,
Kazakhstan 11.3 10.2
completing the takeover of third- probably not been helped by the credit which dominates the Indian spirits
Uzbekistan 5.5 7.2
placed Russky Alkohol ZAO, giving crunch that affected eastern Europe, Germany 4.6 6.5
market, has benefited from the rapid
CEDC a 7.2% share of global vodka especially Ukraine, limiting the possibility India 1.6 6.4 growth of vodka in India, which rose by
sales compared to Diageo’s 7.1%. This of gaining credit to fund expansion. Rest of the 180% in volume terms between 2004 and
acquisition follows on from Pernod World 41.8 50.5 2009 to 58 million litres.
Ricard’s 2008 acquisition of V&S. A year of change Capitalising on this growth, UB Group
As a result of this deal, Diageo and While the much-vaunted and tested has seen its ranking in global vodka rise
Pernod Ricard moved down a position premiumisation trend is still in the from 74th to 19th. With Indian vodka
to second and third, respectively. Both doldrums, it was just one of the volumes expected to double again over
companies saw volume sales stagnate. numerous trends pioneered by vodka, 2009-2014, expect UB Group to be
Diageo managed to benefit from the fact subsequently leading to its establishment challenging for the top 10 in the next
that its portfolio is largely focused on the in the spirits industry and beyond. It is few years.
economy and standard price segments then fitting to see vodka readily reflecting While consolidation in vodka should
in its key markets, thus allowing it not the feeling of austerity sweeping across continue, through acquisition and, equally
only to be hit by, but also benefit from, mature markets as struggling consumers importantly, through organic growth as
trading down. This was particularly the are forced to resort to belt-tightening. companies expand into growing markets
case for the company in the US, but it The meteoric rise of economy brands, such as India, it will continue to remain
also allowed it to see growth in some which were previously tucked away on a relatively fragmented category for the
emerging markets, such as South Africa. the sidelines of manufacturer portfolios, foreseeable future, primarily due to the
Pernod Ricard suffered in part due to is noisily taking centre stage. In a telling fragmented nature of the largest vodka
the more premium nature of its portfolio sign of the times, Diageo’s Popov posted market, Russia, combined with the
and its flagship brand Absolut. 10% volume growth in 2009 in the US at broadening geographic popularity of the
Absolut continued to see volumes the same time that higher-end behemoths category, making it difficult for major
decline in its largest market, the US, in such as Skyy were stalling. brands to gain a large share.
part due to the mature nature of the Even more interestingly, private-label
brand, but also consumer trading down variants, previously considered to be a Reasons to be upbeat
from premium products. Bacardi, which recipe for disaster in a category enjoying As the dust from the financial
was ranked 14th in global vodka sales such high levels of brand loyalty, are no Armageddon of 2009 begins to settle,
in 2009, also suffered from consumers longer taboo. Private-label spirits have Euromonitor International forecasts
trading down from its super-premium gained a lot of traction in the recession vodka to post flat total volume growth
Grey Goose brand in the US. and Sam’s Club is the latest retailer to Global vodka over 2009-2014. But, as previously
jump on board with the launch of a brand shares – stated, single data points are not to be
What goes up… segment-redefining, premium, private- total volume taken at face value.
All the rest of the leading vodka label Member’s Mark vodka under the % breakdown As eastern Europe will continue
companies in 2009 are focused on eastern label Rue 33 in the US in December 2009. Brand 2004 2009 bleeding under the added weight of
Europe. Many of these companies have A continuing flurry of celebrity Smirnoff 4.8 5.9 government sponsored anti-alcohol
seen rapid rises in volumes as they endorsements and the ever-innovative Zelenaya Marka 0.3 2.8 initiatives and tax hikes and is projected
successfully manage to tap into the flavoured launches aside, a landmark Khortytsya 0.5 2.6 to post more than a 2% volume CAGR
large and fragmented markets of eastern High Court ruling that saw vodka join Absolut 1.9 2.4 decline for the category, the Asia Pacific
Europe, especially Russia and Ukraine. the likes of champagne, whisk(e)y, cognac Nemiroff 1.8 2 dragon will increasingly embrace it.
Fifth-placed Ukrainian-based Global and sherry as a name protected by the Khlibny Dar 0 1.7 With a projected volume CAGR
Spirits AMG-77 (producer of the courts was one of the most important Pyat Ozer 0.1 1.6 of 8% translating into the additional
SV 1.1 1.5
Khortytsya brand) had a negligible developments of the year. Diageo won consumption of 124 million litres of
Bilen’ka 0.1 1.5
presence in global vodka in 2006. a case against Intercontinental Brands’ vodka over 2009-2014, it appears that
Medoff 0.5 1.2
Fourth-placed Ukrainian-based Olimp Vodkat – a cheaper and lower alcohol Others 88.9 76.8
vodka may well have found a new home.
Corp has had nearly as rapid a rise as content drink than regular vodka – in Total 100 100 It took over the west and now it is time
Global Spirits AMG-77. Both companies, January 2010. The Gin & Vodka to take over the east. DI

march 2010 drinksint.com VODKA SUPPLEMENT Drinks International 7


News

CEDC steps up the pressure

typically tropical
C
EDC (Central European We have a sales force of more than 2,000 Its first expansion outside Poland
Distribution Corporation) has the working in Russia, but [we have] really came in 2006, when CEDC acquired
vodka world in its sights only just started.” Bols Hungary, a leading importer in
following its acquisition of the Green Mark’s previous owners, the country, along with the Bols vodka
Russian Alcohol Group at the end added Grist, “hadn’t made much brand. This was followed in 2008 by the
of last year. progress in developing the brand purchase of the Parliament vodka brand
The company’s initial estimates outside its major markets”. So, he in Russia.
now put total volumes for the group said, CEDC will be “evaluating The company has also recently
at about 31 million cases, vying for everything”, including the packaging. announced a new agreement with Rémy
position as world’s biggest vodka “Green Mark will move from Cointreau for distribution of its Polish
producer with industry leader being a successful regional brand Bison Grass flavoured variant Zubrowka
Diageo. [in Russian and CIS markets] to an in the US.
The latest CEDC international one. “We have used other smaller companies
expansion adds Russian “Our challenge is now to in the past,” said Grist, “but there have
brand Green Mark integrate that brand into the been ongoing trade mark issues [with
(Zelenaya Marka) to a CEDC operation. the name and concept of “Zubrowka”],
portfolio which already “The key markets are which means that many distributors are
includes major regional the US, UK, Germany,” he not keen to take on a new product.”
brands in Poland and said. “It’s not rocket science. In CEDC’s full year 2009 financial
central/eastern Europe, There are other interesting results announcement on March 1, the
such as Bols, Soplica, markets such as Israel and company’s president and chief executive
Absolwent and Parliament, duty free.” William Carey said: “Having recently
as well as Zubrowka Bison CEDC first went public taken control of our largest investment
Grass. with a share issue in July and strongest cash flow generator for the
“The acquisition 1998, and the company was company, the Russian Alcohol Group,
was completed before admitted to the NASDAQ and obtaining 100% equity ownership
Christmas,” the company’s National Market in the US of both of our vodka production
sales director, Iain Grist, the following year, from businesses in Russia during the second
told Drinks International. which the proceeds were half of 2009, we can now look forward Absolut
“We didn’t know much used to acquire three of the to a clearer path to start to deliver on our Flavour of
about the brand we have leading regional distributors 2010 objectives.”
the Tropics
just acquired [Green Mark] and a leading wine importer This includes vodka launches in Poland Brand owner
except for its strengths. in Poland. and Russia. Pernod Ricard
Markets Asia/Europe
duty free/travel retail
Wyborowa appoints Chopin potato vodka has
unveiled a hand-blown, 7ft
COntact

distributor for US tall, 200-litre bottle to be


PRTR-Focus@focuspr.co.uk

auctioned off in support of The latest variant from the

L uksusowa vodka is to be imported by WJ


Deutsch & Sons in the US. The Wyborowa-
owned brand is to be sold nationwide at $24.99 for
the Grammy Foundation.
According to Chopin, this is
the largest bottle of vodka
Absolut stable is Flavour
of the Tropics. It was
unveiled at last year’s Tax
Free World Association’s
1.75-litre, $16.99 for 1-litre and $13.99 for 75cl. ever produced and is an Cannes exhibition and is in
Deutsch CEO Peter Deutsch said: “Following exact replica of Chopin the process of being rolled
the announcement of our new spirits division in Vodka’s signature bottle. out in London Heathrow,
Paris Charles de Gaulle,
July, we immediately began the search for the The company expects to
Frankfurt, Barcelona and
right partner to supply us with this important raise $50,000 at auction. Istanbul airports.
category. Luksusowa is an ideal fit for WJ The bottle was revealed on The specific flavours are:
Deutsch because it is a category leader – the the red carpet at the Santa orange, mango, lychee,
number one-selling potato vodka in the world.” Barbara International Film pineapple and melon.
At tastings in European
Victor Jerez, CEO of Wyborowa, said: Festival and it features
airports, Flavour of the
“Through our partnership with WJ Deutsch, autographs from the likes Tropics will be mixed with
we will be able to capitalise on Deutsch’s of Sandra Bullock, Jeff orange, according to John
sales and marketing expertise, strong network Bridges, James Cameron Smailes, head of marketing,
Pernod Ricard travel retail
of US distributors and on and off-premise and Quentin Tarantino.
Europe.
relationships.”

march 2010 drinksint.com vodka SUPPLEMENT Drinks International 9


News

Czysta a force to

baltic beauty
be reckoned with
S
tock Spirits Group has enjoyed some will be producing the highest number of bottles
remarkable success in its Polish heartland of spirits in Europe,” said Heath.
in 2009 with its Zoladkowa Gorzka clear Outside the beer sector, vodka dominates
vodka spin-off Czysta Deluxe. drinks in Poland. Nielsen figures for 2009,
Following its launch late in 2007, Czysta supplied by Stock, show beer with a volume
Deluxe exceeded 2 million cases in its first share of 87.7% of the total alcoholic drinks
full year, before registering 5.3m cases last market and vodka at 8.4% – ahead of the next
year, according to company chief executive nearest, whisky, with just 0.2% share. In terms of
Chris Heath. value, vodka commanded 91.6% of the Polish
The traditional Zoladkowa Gorzka market in 2009.
vodka is flavoured with herbs, “The company share is well above 33% [by
spices and dried fruit, and is a well volume], from 10% in 2006,” said Heath.
established favourite in Poland. “It is “Czysta Deluxe is now 16% of the clear
so well known that it gave us a great market, and the parent brand has 38% of the
base,” said Heath. flavoured market. We have another 10% of the
“The Poles really know their vodka, market with some other brands.”
and Czysta always does very well Although Heath admitted that competitors
in consumer tastings. There is no would be keen to take back market share lost
advertising in Poland so we rely on to CEDC, he stated: “We will not be drawn
one consumer talking to another.” into any aggressive pricing activity.”
The rapid growth of Czysta New products launched in Poland
Deluxe has been enabled by the in 2009 included Stock Prestige, a
lithuanian vodka opening of a new high-speed premium clear vodka, a Bison Grass
Brand owner Stumbras AB bottling line last year – variant of Zoladkowa Gorzka
Price £13, US$14.99 Europe’s fastest, the company and Lubelska Cytrynowka lemon
Markets Lithuania, Poland, Peru, Israel, US, Spain, UK, claims, at its Lubkin factory flavoured vodka. “The consumers
Mexico, Italy, Bangladesh in Poland. “From the word and our customers like to see new
COntact export@stumbras.lt go we have continually flavours,” said Heath.
invested [in new equipment], “It shows that it’s a dynamic
Lithuanian vodka claims to be the most popular vodka
up to about €20m now,” category and gives the opportunity for
in the Baltic States. Its production, handling and
merchandising is said to be strictly regulated by the said Heath. new cocktails.”
government. A new rectifier coming Reflecting on how the vodka
According to the regulations, original Lithuanian vodka on line this month will take category might be affected by the
can only be produced in Lithuania and can be made production from its original global economic downturn, Heath
only out of grain of Lithuanian origin, using a “unique
technology” and ethyl alcohol of the highest quality,
level of 20 million bottles in added: “Those products with a strong
claims the company. 2006 – when Stock’s major positive image will bounce back first.
The company says that at the end of last year, investor, Oaktree Capital, One element that has weakened is the
Lithuanian vodka was updated. Filtration via silver or acquired the Polmos Lublin idea that if it’s more expensive it must
gold filters was introduced to ensure higher quality and
production facility – through be better quality.
purity and softness.
The gold vodka won a gold medal at Prodexpo, the to 100 million bottles this “We always make the liquid as
major annual trade show held in Moscow in January. year, with a capacity of 160 good as it can be, then we build the
million bottles. “The plant image on top.”

Explorer goes in Pernod Ricard sale of Swedish and Danish assets


P ernod Ricard is to sell its Explorer vodka brand
as part of a larger disposal of assets.
The company is to sell a number of Swedish
The transaction includes a number of local wine
and spirits brands, including Explorer vodka, Lord
Calvert whisky, 1 Enkelt bitter, Blossa Glögg and
logistic centres located in Odense, Denmark, and
Årsta, Sweden.
Related long-term production, bottling and logistic
and Danish assets to Altia for a cash consideration Chill Out wines. services agreements between Pernod Ricard Sweden,
of SEK835 million, or €82 million at current The deal also includes a bottling facility which Pernod Ricard Denmark and Altia have also been
exchange rates. is located in Svendborg, Denmark, along with two concluded.

10 Drinks International
News

Standard flies high Master class


Californian winery and distillery Charbay has announced
the 13th generation of master distiller.

R
ising star of Russian vodka Russian Marko Karakasevic has earned
Standard announced in February that the master distiller title following an
it exported more than a million 9-litre apprenticeship under his father, 12th
cases for the first time in 2009 – almost half of generation master distiller Milorad
its 2.2m case total volume for the year in all (Miles) Karakasevic from Yogoslavia.
markets. It was Marko’s idea to launch fresh
The news followed a ceremony last December fruit vodkas in 1998 and he was
in St Petersburg in which the company was honoured with the Vodka Visionary
named the Russian region’s top exporter of 2009 award by Food & Wine magazine. The
in the category of alcohol production. distillery also makes brandy, liqueurs,
Founder and chairman of Russian Standard, rums, whiskey and tequila.
Roustam Tariko, said: “While many premium Charbay vodkas and whiskey are now served in the
brands struggled in 2009, Russian Standard International Aman Resorts chain and the company has a
achieved a clear breakthrough in its international new distributor in New York, called Lauber.
expansion and even passed established brands.
This is an enormously proud accomplishment for

fruity
everyone at Russian Standard Vodka.”
Amid its continued rapid international expansion ciroc red berry
plans in 2009, Russian Standard launched in ciroc coconut
nine Asian countries, New Zealand, Canada and Brand owner Diageo
Australia, where the brand captured 5% of the Price US$30
entire vodka market just five months after its Markets US
launch, according to Liquor Merchants Association COntact diageo.com
of Australia and Nielsen data to December 6 2009. announced a “multi-year international
At the same time, the company claims Russian Diageo expects its ultra-premium
distribution agreement” with Rémy Cointreau
vodka brand, Cîroc, to be the
Standard almost doubled volumes in the key US Global Travel Retail, covering duty free channels first to successfully tackle the
market, growing by more than 50% in the UK globally. flavoured segment, with the early
and 20% in Germany. The agreement excludes Russia and the CIS February launch of Cîroc Red Berry
Early 2010 also saw the announcement of a countries, south-east Asia, Australia, New and Cîroc Coconut. “If you don’t
have flavours, you are missing
distribution agreement in Spain with Maxxium Zealand, UAE, Oman and Dubai.
out on a huge opportunity,”
España. “Spanish consumers have a passion for “Duty free is an important sector in Russian says Cîroc brand marketing
authentic products, and we believe that Russian Standard Vodka’s global expansion, and we have director Marc Strachan, who
Standard Vodka will experience rapid growth ambitious plans for our growth in the duty free has overseen the brand’s
with Maxxium España,” said Russian Standard channel,” said Lucas. meteoric rise to sales of
nearly 400,000 cases since
Vodka International chief executive Chris Lucas. Russian Standard has distributed Rémy 2007.
In October last year the company also Cointreau group brands in Russia since 2006. Of all vodka consumed
in the US, 25% is reckoned
to be flavoured, and of

US TV first for Svedka


flavoured vodka drinkers,
35% only drink flavoured
vodka. This sector, along
with 25 to 35-year-old

S vedka vodka has launched a marketing New York, Boston, Los Angeles, San Francisco, “urban/metro aspirational
campaign in the US called R U BOT OR San Diego, Fort Lauderdale/Miami and Chicago. luxury seekers”, forms the
target audience for the new
NOT?, which refers to thre vodka’s spokes-bot, Additionally, the brand’s R U BOT OR NOT? 35% abv Cîroc extensions.
Svedka Grl. messaging will run in local print publications Cîroc Red Berry is clean,
The multi-platform campaign sees Svedka’s including Time Out NY, New York Magazine light and nicely balanced,
first TV commercial, which features a futuristic and Time Out Chicago. with forward aromas of
fresh strawberry and
take on the 70’s robot dance. It also marks the Online will be an important media vehicle and
raspberry and hints of
CGI debut of Svedka_Grl, which was designed will include a Facebook fan page. peach, blackberry and
by Stan Winston (Iron Man, Terminator, Jurassic Specially designed cocktails for the on-trade citrus. Cîroc Coconut
Park). include Hot Bot, Cosmo Bot and Celeb U Bot. (targeted at the flavoured
Svedka’s singular message, R U BOT OR Svedka-custom photo booths will drive bar rum sector leader) is
sweeter and creamier in
NOT?, will be supported by billboards in key promotions where partygoers can download their profile, with mild coconut
nightlife corridors, bus shelters, bus sides, taxi photos and viral videos showing them doing their supported by vanilla and a
tops and phone kiosks in Svedka’s core markets: interpretation of the BOT DANCE. hint of citrus.

march 2010 drinksint.com vodka SUPPLEMENT Drinks International 11


Launches

joss vodka
tailored
Prime Premium
Marquis
Brand owner Olimp Vodka Company Brand owner Randall & Hibbs-Brockway
Brand owner Solas Distillery Price US$20-25 price £34.99, €38.40, US$52
Price US$29.99 Markets Ukraine, Poland, Germany, markets US, UK, Europe, Middle East
Markets US Moldova, Armenia, Georgia, Azerbaijan, contact Oliver Hibbs-Brockway – ohb@marquisvodka.co.uk
Contact zac.triemert@ Kazakhstan
solasdistillery.com COntact export@olimp.ua Marquis is a Polish vodka that has been “tailored” for the luxury
market in both the US and the UK. It is said to be made from
hand selected Polish rye grain from the area around Bialystok.
Solas Distillery in the US state of
It is then cut with de-mineralised water from Poland’s deepest
Nebraska has unveiled what it The Olimp Vodka Company has unveiled its aquifers to achieve 40% abv.
describes as a “super-premium craft- new Ukrainian premium label Prime, a 40% abv The clear bottles are shipped from Italy and the design is
distilled vodka made from locally white vodka with a statement on the bottle that described as “decadent chrome artwork”. The stopper is made
grown organic wheat and filtered it has been “created to be an excellent present”. from sythetic materials and has a hand painted black wooden
water from the Ogallala acquifer”. It is aimed at middle and high-income drinkers. cap.
Claiming to be the first distillery to The company says it expects Prime to be
open in the state after Prohibition, highly successful, not only in Ukraine, but also
Solas commissioned Saxco in the global market. It sees Prime Premium as
International to came up with a the ideal combination of a “unique taste and
premium look. It went with the 75cl an exclusive design that makes it an excellent
Fidji bottle from Saverglass in France present”.
to give Joss a strong presence on- The bottle was designed by Claessens
shelf. International (UK), a well known design agency.
Joss has been rolled out in its The tasting note says: “special tincture of
home state and distribution is being imperial white tea makes the taste very mild
extended to the Midwest. and fresh, while a light flavour and a delicate
after taste accentuate the exclusiveness of the
vodka”.

celebration
It concludes that the foundations of natural
ingredients and artesian water ensure the high
stumbras vodka
quality of this premium class beverage. Brand owner Stumbras AB
Price £14, US$18.99
Markets Lithuania, Latvia, Estonia, Poland, Israel,
UK, US, Mexico, Italy
COntact export@stumbras.lt

Stumbras, the Lithuanian distiller, launched its


eponymous vodka to celebrate the centennial
anniversary of Stumbras distillery.
The range consists of three vodkas, all 40% abv:
Stumbras Centenary vodka, Stumbras Rye Bread
vodka and Stumbras Bison Grass vodka.
All have inclusions placed by hand in each bottle
– the wheat stalks and the rye grain are grown
in ecological farms and the bison grass blade is
gathered in the wild.
premium craft

prime time

12 Drinks International Drinks International 11


wor
What the producers think
Purity Vodka Distillery, Sweden –
Thomas Kuuttanen master blender
La Martiniquaise (Poliakov), France –
Views of the
Sylvia Bernard group export marketing manager
Charbay Winery & Distillery, Napa Valley, USA –
Susan Karakasevic owner/general manager

Where do you see the vodka category going in the next 3-5 years?
SB: We strongly believe in mainstream international brands and
are confident Poliakov has the potential to be among the leading
vodka brands. We assume vodka is the leading category in terms of
recruitment and we need to capitalise on brand image to secure the
loyalty of our consumers taking into account the number of players.
SK: As long as people can stop and enjoy a drink, vodka will be a
staple part of many cocktails – it’s the backbone of many classics. What do the people in the trade
Will the trend towards super-premium brands cease, and the who work with vodka every day
action move to premium/standard?
TK: Studies indicate that premium and standard categories will be actually think about the clear
the big losers, while value and super/ultra-premium will be
the winners, as the market is becoming more segmented. stuff, asks David Longfield
After two years of down-trading, it is evident educated
consumers are tired of compromising on quality. Now

V
vodka drinkers are looking for something beyond image,
so vodka is becoming more about taste and quality, which odka is the fastest moving keen to take risks with image and market
to some extent changes the patterns of consumption. spirits category of them position. 42 Below’s early advertising
SK: People want the status, the quality and the connection all – new brands come and campaigns were a notable exception.
to a company that is loyal to artisan standards. We see go with astonishing speed, RG: People today are fast-living, they
customers who want to trust their favourite brand. yet only some hit the right like something new every day with its
Thomas note. But is vodka exciting, or just dull own interesting story. So if a company is
Can the phenomenal growth of vodka continue? Kuuttanen and predictable – a blank canvas? able to create a brand which hits a nerve,
TK: Absolutely. There is a pronounced interest in It has to be said, potatoes and grain they’re lucky. If not, they’re gone.
handcrafted products, micro-distilleries, organic, non-filtered, are hardly the most exciting aspects of
Fairtrade etc. In addition to the traditional markets, Asia has our diet – they form one part of a well Does the addition of juices and
outstanding potential and the markets in Latin America are also of balanced, satisfying meal. Is it the same flavourings make a nonsense of any
interest as they are just developing a cocktail culture based on white for vodka in a cocktail? claims to quality or purity that vodka
spirits in general and vodka in particular. But the fact is a whole lot of people brands are so keen to promote?
SB: Although the French vodka market increased by 15% in 2009 like to drink vodka. Is it the bartender’s PP: More skilled bartenders tend to
and is among the world’s most dynamic markets, it is still six job to try to steer customers towards the prefer pure/clean vodkas as the heavier
times smaller than the scotch whisky market and it is recruiting more flavourful base spirits? And does it and oily vodkas “kill” the freshness and
a lot. We are confident. matter, as long as a bar is turning over crispness of the drink. Flavoured vodka
the volumes and making good profit? is usually used in long drinks where
Are there still flavours to develop? Does the market need more? Three members of the bar community there is a need for a specific taste
TK: I’m sure this market will continue to grow rapidly as offer their thoughts: component.
producers want increased shelf space and it’s cheaper to Pekka Pellinen – global brand champion, BS: Most vodkas do not have the flavour
produce a flavoured vodka than a good non-flavoured vodka. Finlandia Vodka Worldwide strength to dominate a drink unless it is
But what the market really needs is a greater understanding of Ben Simpson – manager, Motel Bar, a straightforward Martini. This can be
fresh and natural ingredients, which are far superior to the Forresters Lane, Wellington, NZ a plus, of course, if there is something
artificial flavourings used by the industry. René van de Graaf – owner, Dino’s else in the drink you are profiling, but
SK: More flavours? Only for novelty, a way to get in the American Bar, Vienna, Austria generally it seems that vodka is selected
press. It’s a hollow gong, these days. From 1998 to 2002, as a cocktail ingredient to make drinks
we were the only ones making fresh fruit flavoured vodkas Is vodka exciting, or just dull and that appeal to those people who do not
that tasted like real fruit. It was exciting, heady and we predictable? like the taste of other alcohol.
took off like a rocket, so we were PP: Fresh juices and ingredients are being RG: In my philosophy the better the basic
copied to the nth degree. used more frequently. Vodka, flavoured spirit you take, the better the cocktail
or not, is used to boost the taste and gets. So using premium vodkas in mixing
aroma. That’s the main point of vodka’s drinks is for me not only very logical, but
success – its taste is not dominant. almost the only smart thing to do with
BS: Because of all the promotional money it; drinking vodka all the time only neat
invested, the vodka market is not too is boring.

14 Drinks International
Opinions

rld
What’s really happening
out there?
Motel Bar, Wellington – Ben Simpson
What are your current pours? Speed rail: Snow Queen
How often do you change? Go-to vodka is changed every
four months or so. The last few brands used include Russian
Standard, Stolichnaya, Wyborowa
What’s your super-premium? Russian Standard Imperia
Which vodka brand do you think is best for:
a Martini – Snow Queen
a long drink – Stolichnaya
neat/frozen – Chopin
What is your main flavoured vodka brand? Belvedere
How many different flavoured vodkas do you stock? Nine
In 2010 are you planning to stock more, less or make no
change? No change
Which flavoured vodka do you think is the most interesting
to work with for cocktails? Bison grass
In 2009 did you stock more vodkas, fewer or no change?
No change
And in 2010, do you intend to increase your vodka range,
The Motel Bar, Wellington, New Zealand decrease it or make no change? No change

Dino’s American Bar, Vienna – René van de Graaf


Do you feel an obligation to try they want – they’re paying for it after all. What are your current pours? Speed rail: Smirnoff
to inform and gently educate Once I’ve presented the drink How often do you change? Depends on who we have a
your customers away from the I often suggest that they try it next pouring contract with
“tasteless” and towards the more time with a different spirit by way of an What’s your super-premium?
characterful base spirits? experiment (swapping the vodka for Cîroc
PP: The vodka cocktail culture is still not gin or white rum). Most white spirit Which vodka brand do you
that developed in the world, but more cocktails can handle a change of think is best for:
and more bars (with skilled bartenders) base spirit. a Martini – Cîroc
start to understand that, so customers are RG: Without a good profit you can forget a long drink – Smirnoff
starting to ask bartenders for different everything else and close your bar. There neat/frozen – Cîroc
vodka drinks again. There is a huge are guests and guests; some of them are What is your main flavoured
difference in basic cocktails, if you use focused on vodka, so I let them. I say vodka brand? Ketel One
different vodkas. that we in our bar don’t sell any “bad” Citroen
BS: I believe you should give people what spirits, so if I don’t want them to drink How many different flavoured
something I don’t buy it. vodkas do you stock? Ketel
One Citroen and Absolut
Is there anything you don’t get Kurant. We make our own
from existing vodkas that you flavoured vodkas, such vanilla,
would like to see? pepper (different kinds), chilli,
Pekka PP: Flavoured vodkas to take a stronger Roquefort cheese, oregano
Pellinen position, especially in the eastern part and so on
of Europe, where most of the vodka And in 2010 are you planning
consumption is straight shots. More herb to stock more, less or make
and botanical vodkas. no change? We’re always René van de Graaf
BS: More dry flavours, less emphasis trying new flavours that we
on “odourless, flavourless, colourless” make ourselves
and more drive for flavour, more potato Which flavoured vodka do you think is the most interesting
vodkas available. to work with for cocktails? Vanilla
RG: The guests who drink vodka are In 2009 did you stock more vodkas, fewer or make no
greatly led by the image of a certain change? It stayed more or less the same: some new ones came
brand, and I think of the idea that in, some we didn’t buy any more
vodka is a “clear” spirit, so they can And in 2010, do you intend to increase your vodka range,
drink it without the next-day hangover. decrease it or make no change? If something new, interesting
So personally I would like a vodka with (or very big in the media, so our guests ask for it) comes along
more “taste” while still being a clear, – but not just any other bottle, there are already so many
high quality, spirit.

Drinks International 15
US Scene

Higher

It may not rival that of


Russia in terms of sheer
size, but the US vodka
market remains reassuringly
resilient as the world’s most
dynamic and diverse.
Ben McFarland reports

I
ts impressive expansion in recent This was slower growth than any of $7 a bottle, have seen respective spikes in
years has been well documented. the previous five years, yet there are sales of 10.7% and 5% when compared
Between 2003 and 2007, the reasons to be cheerful despite the double with the figures from 2008.
American vodka market swelled whammy of recession and a shift from The shift has played into the hands
substantially with hundreds of on-premise to off-premise. Even if you of brands such as Svedka – the Swedish
new brands, both imported and domestic take into account the fact that folk brand which is owned by Constellation
– yet mainly positioned at a premium or often turn to drink as an antidote to an and has a bottle shaped very similarly to
super-premium price point – doing battle economic malaise, vodka’s stats in the Absolut – and Popov, owned by Diageo.
for share of the biggest distilled spirit past two or three years are far healthier Clad in traditional Russian imagery and
sector in the States. than those of other spirits. often packaged in plastic, Popov saw
However, when this plethora of new sales rise 5.4% between 2007 and 2008,
vodkas, brand extensions and variants Consumers driving value according to leading market research
clambered on to America’s fast-moving Yet the story these generic figures fail company Mintel.
bandwagon, the economic climate to tell is one of a shift in consumer Yet Andrey Skurikhin, a partner of SPI
was significantly more pleasant and behaviour; people are eschewing brands Group – owner of the Stolichnaya brand
finances were in far finer fettle. Given the in the upper echelon of the vodka outside Russia – dismisses the
subsequent downturn in the economy and scene in favour of what premium “downturn” as
the overcrowded nature of the market, it some would politely call nothing more than a brief
would be logical to assume that, while the “popular” brands. Further blip. “When the recession first
wheels may not have fallen off the wagon, investigation of DISCUS hit, there was a shift towards
the brakes at least have been applied. figures reveals that volume value brands but that was
But it’s not necessarily so. The sales of high-end simply the consumer
American vodka market has displayed premium and super- panicking,” he says.
more than a sturdy resistance to the premium vodkas, “That behaviour has
recession. In 2009, according to the sold at or around the passed and we’ve seen
Distilled Spirits Council of America US$30 mark, were a distinct return to
(DISCUS), gross revenue for the sector down 2.35% and more discerning brands,
was valued at more than $4.56billion, 5.8% respectively, especially the ones
representing a third of the total US spirits while value and that manage to strike a
market. The vodka sector grew slightly to mainstream vodkas, good balance between a
reach 55.95 million 9-litre cases. costing anything from desired price point and

16 Drinks International
US Scene

quality. If you can achieve that


as a brand, consumers remain the American
loyal even during a recession. consumer
“Compared with other is very
markets,” he continues, “the educated
American consumer is very
when it
educated when it comes to spirits
and tends to be richer and more
comes to
willing to pay for quality, and spirits
they won’t be easily swayed by a
dollar difference here or there.” Andrey
Skurikhin
Jeremy JF Thompson,
stolichnaya
education marketing specialist at
Russian Standard vodka, concurs
with this view. “There are many
of us who may decide that a real
vacation is out of the question
in 2010, but it’s just this kind of
resolution that allows us to feel
more entitled to a better brand
of drink at the end of the day,”
he says.
“If I can’t be sucking up frozen
Cachaça through a straw sticking
out of a coconut somewhere on
the sandy coasts of Brazil, I’ll certainly new, emerging wave of regional micro- already established a strong foothold
allow myself a top-shelf cocktail at the distillers. with bartenders.
watering hole down the street.” Having assumed control of And then, of course, there’s Absolut.
Ned Duggan, US senior brand manager Stolichnaya’s international distribution After Smirnoff, which accounts for
for Grey Goose, adds: “In tough following Pernod Ricard’s acquisition around 17% of all vodka sales by
economic conditions people stay with of Sweden’s V&S Group, the SPI Group volume, Absolut is the largest vodka
trusted brands and that’s certainly proven recently repositioned its core brand brand in America. Yet since 2008,
to be the case in the past year. New and pledged to grow Stoli by 100% when it was ushered under the wing of
entrants to the market have suffered but within four years. A taller, more heavily Pernod Ricard for the princely sum of
brands such as Grey Goose, which are embossed bottle was introduced at the £4.4bn, the general consensus is that the
respected for their quality, have continued end of last year and a new marketing brand positioning remains uncertain.
to enjoy strong demand. initiative – aimed at further exploring the According to Mintel’s latest report, the
“We have seen a shift from the on- brand’s Russian heritage but in a style brand’s market share dropped from
premise to the off-premise,” says Duggan, designed to entice a younger consumer – 9.5% to 8.6%, with many wholesalers
but: ”It’s more important than ever for has been embarked upon. undermining its premium positioning
consumers to know the value of what “Some may say it’s not the best time through discounting.
they are buying, so building awareness to reposition,” admits Skurikhin, “but The challenge facing Pernod Ricard is
of the care with which Grey Goose is this is a long-term exercise and one that recapturing the cult, cool and creative
made, using the finest natural ingredients, will stand the brand in great stead in cache that thrust Absolut on to the scene
has always been and continues to be the future.” in the 1980s. Having built a reputation
very important.” In addition to the parent brand, SPI as a strong supporter of the arts, Absolut
And he doesn’t expect the home- also has interests in the ultra-premium has collaborated with director Spike
drinking trend to last too much longer: sector with Stolichnaya Elit and is Jonze on a film called I’m Here. Blurring
“More people are returning to the expanding in the flavoured arena with its the lines between artistic altruism and
on-premise and there are new nightclubs new Stolichnaya Gala Applik. advertising, the 30-minute film stars
and restaurants opening, so we are Diageo, which commands a 23.3% two robots who live in Los Angeles and
looking forward to healthy growth in share of the entire vodka market, is subtitled A Love Story in an Absolut
the year ahead”. enhanced its premium presence in the US World – it recently stole the show at the
courtesy of a $900m deal in 2008 with Sundance Film Festival.
Premium persists Ketel One producer Nolet Distillery – Jeremy Thompson offers the angle
Despite the dip in form and while the joint venture giving Diageo global of a rival on Absolut: “I hope Absolut
marketing budgets are more modest than distribution rights for the Dutch potstill has peaked, but it’s still as much of a
they were during the boom years, the produced vodka. Now no longer stalled household name as a vodka brand can be,
jostling for position at the premium end in the period of changeover, it’s been so there’s no telling, and despite the fact
of the market certainly remains intense busy cementing its premium positioning that even major players are cutting back
with investment and innovation rife, through extensive work within the upper their budgets, they still have more dollars
be it from the behemoth brands or the echelons of the on-trade, where it has to spend at the end of the day.  p19

march 2010 drinksint.com VODKA SUPPLEMENT Drinks International 17


US Scene

“If the game was just about visibility,


Absolut would always win,” he says.
“Fortunately, there’s been a push toward
the pursuit of authenticity and more
discernable forms of quality among
trendsetters in the past decade.”
Thompson adds that mixology, micro-
distilleries, the revival of various spirit
categories, boutique brands and boutique
branding, and international cocktail
events are all visible consequences of this
trend. “At first glance, this all might seem
like luxury better suited to a booming
economy,” he says. “But all these aspects
of our industry have been, and are being,
used to create leverage for both newer
and smaller brands.”

Affordable luxury
Indeed, the ultra-premium end is still
looking healthy. Cîroc, made using
French grapes and owned by Diageo, is
challenging Belvedere amid the ultra- Above: Cocktails at a launch of boom or bust, however, industry as permanent fixtures on the back bar
premium arena with a move into the event in New York for observers believe that, in the battle and the wackier efforts attract interest,
Patrón’s Ultimat Vodka
flavoured segment. Following its ongoing for vodka market share, the two all- novelty factor will only get you so far.
2007 business alliance with Sean “Diddy” Above right: Jeremy important factors that will ensure brand “There are a lot of non-traditional
Combs, the brand has expanded its reach Thompson, Russian Standard longevity and strong consumer value are flavours being launched by other vodka
with the launch of Cîroc Red Berry and authenticity and quality. brands – everything from bubblegum
Cîroc Coconut (see page 11). Aimed “It’s a mature market in America. The to root beer. Some sectors of the vodka
squarely at premium vodka drinkers, consumer is very knowledgeable and, market are starting to look more like
they’re positioned as classy cocktail over the next few years, genuine quality candy stores,” says Ned Duggan from
components or spirits to be sipped on will become more important,” says Grey Goose.
the rocks. SPI’s Skurikhin. “Currently drinkers can Daniel Hyatt, bar manager at the
Ultimat, the vodka that shares a stable differentiate between flavoured vodkas spirits-led Alembic bar in San Francisco,
with tequila high-flyer Patrón, is another but, in time, that will be the case for says: “I am not sure that anyone is
emerging ultra-premium player, with the straight vodkas, high quality vodkas that looking that hard for them (flavoured
Patrón Spirits Company having spent you sip. The next movement in vodka vodkas) any more. Most in the industry
approximately $10m in advertising last will be the appreciation of the variety of are finding that doing their own infusions
year. “There will always be some brands vodka and all of its nuances.” or using housemade tinctures and bitters
that come and go, but when you have Thompson agrees that quality and gives a little more control and specificity,
a consistent, high-quality product, with authenticity are invaluable. “In a rather than pouring the same citron,
dedicated marketing support behind it, we arrive at recession, these two general attributes orange, bacon-flavoured bottles everyone
those are the brands with staying power,” 2010 face to are especially valuable. While there are else is buying.
says Matt Carroll, chief marketing officer face with always going to be the megaliths of the “For new producers I understand
for Patrón. bubblegum, industry fighting it out overhead, they the impulse to put these out to market,
“Ultra-premium vodka is an affordable should keep an eye on the brawl brewing as one can start making a little money
root beer
luxury. People might be watching their just beneath them... it’s the clash of the right away rather than bearing the
spending on expensive new cars and
and bacon quality titans, and its open to anyone, big cost of ageing spirits. It is beginning to
vacations, but when they go out for the vodka or small, who is willing to compete by be the same story with craft gin, with
evening, or are entertaining friends and virtue of looking the customer in the eye, another rolling out every day and most a
family at home, they’re increasingly jeremy raising a glass together and putting liquid tad short.”
realising that it’s worth those extra few thompson to lips. Russian Standard’s Jeremy Thompson
dollars to reward themselves with a high- Russian “Many emerging brands realise the adds: “The problem with flavours is
standard
quality cocktail.” value of visibility, but they should also that once you produce your first round
Regardless of whether they are times pay attention to the taste of what’s in of them, everyone expects you to keep
the bottle.” making more. Hence we arrive at 2010,
face to face with bubblegum, root beer,
The Flavoured Vodka market and bacon vodka. Some of these products
The US market is overflowing with are actually quite fascinating, but they
flavoured brands and it’s been a rich don’t stand the test of time – like that
source of innovation, and indeed growth. telephone shaped like a hamburger from
While many have established themselves the 1980s.” DI

March 2010 drinksint.com VODKA SUPPLEMENT Drinks International 19


bottle
Message in the

Photo: Shutterstock

When it comes to packaging design, it takes a lot to get the


right bottle. Lucy Britner finds out who has the X factor

T
he lights are low. The drums Brandopus ( the company “All great brands have a story – not
are rolling. Simon Cowell is behind LVMH’s Belvedere) just drinks brands. Think about the
about to reveal the winner says designing vodka splodge on a Mont Blanc pen, for
of this year’s X Factor. On bottles offers designers example.
one hand, someone stands room to express themselves. “It’s important a bartender can
to make millions; on the other, they’ll “What vodka brands communicate a brand with a consumer.
probably only enjoy 15 minutes of fame do offer, over and above “It’s important the brand connects with
in an already over-saturated pop arena. other spirits, is this ‘creative consumers. You have to be aware that
Marketing vodka is pretty similar. You freedom’ that they crave. there is so much out there.”
might have the X factor but it takes more They tend to have much Relatively young brand Purity, which
than that to ensure you’re not a one-hit wider scopes for designs only ventured out of its domestic market
wonder. with fewer constraints and of Sweden to the US last year, was
Some designers see creating a new mandatory must-haves than conceived according to some key
vodka brand as the golden ticket, others most briefs – which, if not criteria.
see it as a one-way ticket to novelty carefully approached, can Thomas Kuuttanen,
excess. But one thing they all seem to be lead to less distinctive and founder and master blender of
clear on, when it comes to brands with unique solutions.” Purity, says: “Among the most
the bottle, Absolut is top of the pops. Design Bridge’s Graham important things to consider are
So where do you start when it comes to Shearsby warns of the shelf appeal – 85% of customers
designing bottles? difficulties of creating a choose a new brand based on its
Nir Wegrzyn, managing partner from brand from scratch. appearance; be true to the origin –

20 Drinks International
Packaging

highlight the spirit’s unique qualities and


don’t pretend to be something you are What vodka
not; ease of use – this is more important brands do
to bartenders than everyday consumers. offer over
Drinks trends start in bars so you need and above
them on your side. Don’t look too much
all spirits
at the competition as you run the risk
of becoming a ‘me too’ – currently tall,
is creative
frosted and wispy.” freedom
Kuuttanen also warns that it’s
important to take the work seriously. “It
may sound obvious,” he adds, “but too nir wegrzyn
many brands are thinking short term and brandopus
the result is often a fad or a gimmick
which has a tough time surviving the
next trend.”
Which is why Shearsby is a little
sceptical when it comes to viewing vodka
projects as the golden ticket, especially
in the dawn of an age filled with more
money-conscious consumers.
He says: “It might’ve been the golden
ticket a number of years ago. But it’s
an odd sector. It’s almost now
associated with novelty excess. An
X Factor 15 minutes of fame. A
gimmicky work. A bit of a yawn.
“Young designers out of college
always want to work on wine projects –
they say it’s the closest to art.
“Vodka can be a little bit clichéd.”
Shearsby illustrates his point with to define and, if necessary, create these don’t have to go much further than a
reference to two main trends in the sector. brand equities that will live well beyond duty free shop to see a vast array of
“The first is the X Factor winner any advertising campaign.” bottle shapes, all vying for your attention.
bottle that will enjoy 15 minutes of Diageo’s global design and gifting Whether its U’Luvka’s wavy bottle,
fame. Then there is the over-decorative, director Jeremy Lindley agrees that there Purity’s crystal-style bottle or, if you go to
extravagant Imperial Russian style bottle, is little point investing in the liquid if Russia, Kalashnikov’s gun-shaped bottle.
adorned with Cyrillic lettering. you’re not going to bother investing in According to U’Luvka, World Duty Free
Which brings us nicely to Wegrzyn’s the design. He says: “Overall, consumers says its bottle is the most handled in
point about what the role of packaging make a very direct connection between travel retail.
design should be. the look of the product and what’s inside. And, as technology moves forward,
He says: “The role of packaging design We invest heavily in our liquid so it’s we can expect to see some more radical
is far more important than most people important to invest in packaging. It’s bottle shapes in categories other than
realise. For consumers, packaging is the where consumers source information super-premium. Some believe this is due
primary link to the brand – the physical about the drink.” to the rise in contemporary gin bottles.
expression of the brand in its natural Avril Tooley from Brandopus says:
environment. Through consumers’ eyes Consumer perception “Over the past few years there has been
the pack doesn’t exist as an intrinsic Purity vodka invested in consumer a limited amount of radical structural
part of the marketing effort (unlike research before embarking on its design. design in vodka. However, with the rise
advertising), but is simply what they buy, The key design cues the company came in differentiated gin bottles there does
and hence it works in a different way to up with include unique, pure, heritage, appear to be a resurgence in more unique
other communications. Therefore, it is ultra premium and timeless. vodka bottle shapes, if currently only seen
vitally important to invest in building Purity’s Kuuttanen says: “In addition to in the super-premium end of the market.
brands via design.” the results from the consumer research, As bottle manufacturing technology
Trends that may spark a brand’s we wanted to tie together the design, improves, allowing faster production
initial success are to be viewed with not only to the product but to its unique speeds, more complex bottle structures
caution, according to Wegrzyn. He says: distillation technique. It is also very are likely to filter through to all ends of
“Irrespective of immediate brand success important that the bottle is user-friendly the market.
that is often driven by ‘this or that’ trend, and, above all, easy to hold and pour.” “The rise in popularity of gin has also
long-term brand success for a brand can When it comes to investing in seen a blurring of visual boundaries
only come when it can be linked to a packaging, the very shape of the bottle between the two spirits, which will force
branded equity. It is the role of design can take up a bulk of the budget. You vodka brands to have a much  p22

march 2010 drinksint.com VODKA SUPPLEMENT Drinks International 21


Packaging

Absolut winner
But the brand name on everyone’s lips is
Pernod Ricard’s Absolut.
Although the bottle was finalised
in 1979 – 31 years ago – it still looks
contemporary.
Shearsby says: “I think there is a tick
list when it comes to vodka – clarity,
purity, elegance and speed-rail
ergonomics.
“The most important element
of any brand is what’s the story
behind it?
“Absolut is a brand I admire.”
The team at Brandopus also
goes weak at the knees for Absolut.
Creative director Paul Taylor says: “It
is a design classic and it has successfully
created a distinctive and iconic branded
visual appearance through a unique bottle
shape and simple graphic equities. It
keeps the brand alive and top of mind by
leveraging these equities and constantly
challenging the category norms with
individually designed flavour variants and
beautiful limited edition bottles.”
The bottle is modelled on an 18th-
century medicine bottle that one half of
design duo Carlsson and Broman found
in an antique shop. The pair began
working on the project in 1977 and
didn’t finalise the design until 1979.
Eric Naf, director of product
innovation for Absolut, says: “You can
clearer proposition. We have seen the with print and frosting on the front and always expect more exciting news from
introduction of some interesting bottle back and a window to the inside. Absolut, including limited editions and
structures and graphics that have shifted “Again, certain other brands have gone new products that reflect our personality.
their primary focus away from purity too far.” New flavours are here to stay.”
and are taking design influences from The designer of Belvedere, Brandopus Absolut is famous for its limited
cosmetics, perfume and fashion brands.” says this of its creation: “We admire editions – disco balls, sequins, leather
Kevin Shaw from Stranger & Stranger Belvedere for what the design achieved and studs. Naf adds: “It’s important to be
is inclined to agree, though he thinks the and the category it has now created as the consistent and always reflect the brand’s
days of bling are over. We’re so first super-premium vodka. personality. We’re creative and stylish and
He says: “We’re so over those over those “It broke the category norms – a world want to stay contemporary to be seen as
diamonds-in-the-vodka-bottle days. diamonds-in- that was driven by the absolute purity a player.”
People want more real differentiation the-bottle and clarity of the product itself – by Naf wouldn’t say how much the
so we’re working on unique flavours using an exceptionally tall frosted bottle company spent on the bottle design
days
delivered in new formats to add value.” that masked the product, with a small but he did say this: “It’s not an isolated
Belvedere and Grey Goose come up in Kevin Shaw window into the world of Belvedere. It is figure. We’ve invested millions over
Stranger
designers’ top trumps. a classically beautiful and refined design the years to be consistent in brand
and Stranger
Shearsby says: “These designs triggered and unlike many of its super-premium executions. This figure also includes
another trend – almost like a snow dome competitors it is not overstated.” media promotions and there is a full
marketing budget dedicated to
expressing that.”
Shearsby likens Absolut’s limited
editions to a dressing-up box. He says it’s
important to still be able to recognise a
brand. “It’s a cool brand playing on its
core values.”
A bit like Madonna. And whether you
love or loathe her, she has never been
short of a number one. DI

22 Drinks International VODKA SUPPLEMENT drinksint.com march 2010


Vodka History

The origins of vodka are complex, says


Hasse Nilsson, meandering across
Russia, through Poland and Mongolia,
all over the mighty historic plains of east
and north Europe

Ancient and

The Vodka History Museum, Moscow

E
xactly where the cradle “vodka” – a diminutive of the Slavic Middle Ages, but then it was mainly for
stood we do not know; word “voda”, meaning water – spread medical use. The Polish botanist Stefan
of exactly what was once during the early Middle Ages. Familiars tells us as early as 1534 in
imbibed we can have no The Russians emphatically claim that Works on Herbs that vodka “increases
clear concept. But spirits they were the ones who invented vodka, fertility and cures sleeplessness”.
historians are in agreement that vodka is with fundamental knowledge that had At about the same time in 1540s
Top: historical artefacts at
a truly ancient beverage. the Vodka History Museum, worked its way up from the south, Russia, the old tsar Ivan the Terrible
Vodka is believed to have first seen the Moscow. Below: Russian Mongolia or China, before the end of the reinstated a monopoly on vodka
light of day as early as the end of the first chemist Dmitri Mendeleev first millennium. There’s a lot pointing production and prohibited all other forms
millennium, somewhere in the regions of in their favour, although Poland also has of manufacture. Consequently, the history
modern-day Belarus, Russia or Ukraine. some good arguments for itself. of the tsar became the history of vodka,
There are those who claim that vodka The earliest, albeit brief, written and vodka became an intrinsic part of
has a considerably more southern origin, records of vodka production in Poland Russian society.
while others hold that it was devised in are from the 1400s, but legend tells Eventually, every self-respecting
eastern Europe where it was distilled us that the Polish discovered strong Russian landowner had a vodka distillery
from honey wine and beer. alcohol as long ago as the 8th century, by on the premises, and at the tsar’s rural
Yet others point to the kinship with leaving wine out over winter. The water palace both distilling and what you could
alchemists, who learnt from the classic in the mash would freeze, producing a call advanced product development took
ancient cultures how to decompose fluids concentrated solution at about 10% abv. place on a large scale. There they were
through heating processes. Whichever In 1546 in Poland, King Jan Olbracht particularly interested in finding methods
theory you choose to adopt, what you granted the rights to distil and sell spirits for refining and purifying the vodka. It
mean when speaking of vodka remains a to every adult citizen. Spirit had no doubt was in fact at a palace distillery that Pyotr
question of definition. To keep it simple, been produced in Poland since the early Arsenijevic Smirnov started studying re-
let’s just say that vodka is a very old distillation and carbon filtration.
Russians celebrate
type of alcoholic beverage made from in appropriate The refinement of the raw and hardly
agricultural products. fashion as the drinkable spirit spread quickly within
country’s ‘dry law’ Russia and subsequently to other
ends in 1924
International story countries in Europe. During the 19th
The first form of vodka did not have century, Russian vodka production
much in common with the pure, clear was one of the world’s most modern
alcoholic beverage that we today label and technically advanced industries.
as vodka. Originally it was called bread Russia was a stronghold of continuous
wine and was most likely a cloudy, distillation, originally invented in
pungent, barely drinkable decoction of Scotland, outrivaling the traditional batch
grains. In the east the use of the name distillation.  p26

march 2010 drinksint.com VODKA SUPPLEMENT Drinks International 25


Vodka History

As early as 1902, a State Vodka Research Institute government-run production monopoly, which lasted
was founded. That same year, the Russian chemist, until 1995, when it again became permissible for
Dmitri Ivanovich Mendeleev (credited with being Swedish companies to produce alcohol.
the creator of the first version of the periodic table of
elements), determined the ideal alcohol content as 38% Go west
(rounded upwards to 40%), and was appointed by the Today we speak of a “vodka belt” extending
tsar to standardise the production. During the Soviet over the nations of northern and north eastern
era all vodka distilleries were owned by the State, and Europe. Hard liquor has long dominated alcohol
vodka became the national beverage of the continent. consumption there due to the lack of winemaking,
Strangely enough, there is no evidence of the and so the production of vodka and “akvavit” in
infamously parched and bibulous Vikings coming these countries became world leading. It is only in
into contact with distilled libations on their recent years that vodka has become an established
“business trips” deep into Russia. When vodka concept in the west.
as a drink made its triumphal procession all over It was Pyotr Arsenijevic Smirnov’s son Vladimir
the Nordic countries in the 1500s it was mainly who introduced vodka to the western world, settling
as a universal medicine to cure everything from in France after fleeing the Russian revolution. From to become world leading. In addition, Absolut was
witchcraft and pests to haemorrhoids and bad hair there he sold the rights to production of Smirnoff in the trailbreaker establishing vodka as the world’s
days – and even alcoholism. post-Prohibition North America to another Russian foremost premium hard liquor.
In the 18th century Swedish authorities banned émigré, Rudolph Kunett. Production began in 1934,
private distillation for four years. During this period, although Vladimir never got the chance to witness it, Shift in taste
more than 180,000 stills were seized, which should dying in August of the same year. Recently vodka has developed in a completely
be seen in the context that Sweden had fewer than Despite struggling to find an audience in its early different direction. Several prestigious vodkas
300,000 households. Despite this attempt, there were years, Smirnoff vodka grew outstandingly popular, claiming to taste a lot instead of a little, greatly
more than 175,000 remaining stills in 1829 split eventually being marketed as “white whiskey”, and more sophisticated and characteristic than their
among 450,000 households. by the end of the 1940s it was a staple in bars all predecessors, have appeared on the market.
With an annual alcohol consumption of 107 litres over the country – when James Bond himself relaxes First there was Grey Goose from France, Polish
per person it is obvious the stills were quite busy. with a drink in a bar in the movie Doctor No from Belvedere and Dutch Ketel One. Next Russia’s
This over-consumption resulted eventually in a 1962, it is with a glass of Smirnoff in his hand. Stolichnaya raised the bar with Elit, followed by Polish
player Ultimat, the grape-based vodka Cîroc from
Dawn of the design era France, and the Russian vintage vodka Kauffmann.
In the modern sense of the word, vodka has little in The most lustrous example is perhaps the
common with the original bread wine from the east. Swedish brand Purity, which has been picking up
To a greater extent it has become a mixed drinks international competition gold medals regularly in
base from which flavour and character have been recent years. Purity is the first vodka distilled in a
filtered out. Blenders and product developers have traditional pot still that has achieved the European
created a spirit that goes unnoticed when mixed with Union alcoholic proof standard of 96%.
juices, soft drinks and ice. Incidentally, the presence of greater numbers of
Vodka is, however, precipitated by a billion dollar quality vodkas on the market has changed consumer
industry with enormous resources. When Absolut habits. All over the world the big brands are losing
vodka was launched in 1979, it became such a market share to vodka brands that cost twice as
landslide success that it caused a deep crisis for much. In keeping with this trend many producers
many traditional drink producers. In addition, when of quality alcohol have started to take an interest in
influential American TV series such as Dallas and vodka, and the launch of new brands is extensive. In
Falcon Crest taught the world how to mix a cocktail, the US alone, a couple of hundred new vodka brands
whiskey and cognac producers felt the cold draught are attempting to gain access to the market each year.
of the consumer’s fleeting drinking habits. The well-established brands, headed by Absolut,
Absolut vodka also manifested the importance of try to take on newcomers by merchandising vodkas
Distillery in Ödåkra, elegant design and modern branding. Absolut was no tasting of orange, lemon, pear and pepper in a
Skåne, southern better than its main competitors, but the marketing neverending stream of ingenuity.
Sweden, c.1900
was savvy and it did not take long for the brand Today vodka is the biggest selling spirit in the
world, so in this respect it does not matter if you like
Vin & Sprithistoriska Museet, Stockholm it or not, if you drink it or not, or if you don’t care at
Unique in Sweden, and possibly unmatched in Europe, the Historical Museum of Wine & Spirits gives all – you have to tip your cap to the industry.
visitors a comprehensive insight into the story of spirits and wine in Sweden. Whether it be from Russia, Poland, Ukraine,
Subjects waiting to be uncovered include why arrack punsch was so popular at the turn of the 20th Scandinavia or wherever, they have done a pretty
century; how the Swedes almost drank themselves into obliteration in the 19th century; a tasting room good sales job with this crystal clear, tasty, lovely
from the 1920s, as well as an original turn-of-the-century wine store. little water of life.
On top of this, visitors can get to grips with an archive of 200 Swedish drinking songs and test their
olfactory ability on the 55 different vodka and liquor spices in the museum’s “scent organ”. Hasse Nilsson has been writing about spirits and
Entry to the museum costs 50 kronor (E5), with an audio guide in English available, and full details can wine in Scandinavian drink and food magazines for
be found on the vinosprithistoriska.se website. 15 years, and is also the author of Maxxium’s book
Feel Famous

26 Drinks International VODKA SUPPLEMENT drinksint.com march 2010


Vodka Cocktails

While vodka is the undisputed customer


favourite, are bartenders turning their
backs on the category? Tom Sandham
puts the question to bar professionals
from around the world

Friend or

V
odka isn’t a spirit that to head to the Finlandia Vodka Cup.
looks like it could win Held in Lapland back in February, the
in a fistfight with other cocktail competition attracted bartenders
categories. True, it from 31 different countries this year – the
could be confused with 12th of the annual competition – each
pure alcohol, which is obviously very keen to flex their mixing muscles with the Anton Velich’s Role of the bartender
dangerous to the liver, but stick it in white spirit. winning One method of encouraging a change in
the flavour ring with a single malt or an With more than 450 very different consumer palates is to switch-sell and
Finlandia Cup
aged rum and the mismatch is akin to a vodka cocktails being made during the Eric Alperin, who runs the Vanish Bar
cocktail (Long
flyweight taking on Muhammad Ali. competition, the Vodka Cup successfully in Los Angeles, is an advocate of such
The process by which vodka is showcased how flexible the spirit can be.
Drink) measures.
Finlandia Icecream
produced points to a weaker constitution As an example the competition winner’s “I would look to switch-sell,” he says.
0.4cl Finlandia Mango
as well; multiple distillations ensure little Cu-Martini aperitif included lime, peach Fusion Vodka
“If you can’t budge them, then make a
character remains so that, while other tree liqueur, pomelo syrup and a slice of 0.2cl Coconut syrup vodka cocktail. But gain their trust and
spirits bulk up in ancient oak casks, cucumber, while elsewhere everything 0.2cl Lime juice the next round they might be more open
vodka enjoys nothing more than the from mango and mint to coconut and 0.5cl Mango juice to change.
status of “neutral”. Even gin can bite and champagne were thrown in the mix. 0.5cl Strawberry juice “While it’s true that vodka is devoid
scratch with its botanicals. If you consider vodka in the context of Method: Shake of a strong individual personality, I do
This, combined with the advent cocktail heritage, then it obviously has its Garnish: Fresh mint & consider it a challenge to bring out the
of social networking and shared place. The Bloody Mary first mixed by strawberry subtleties in this particular distillate. But
information on the internet, could be the Ferdinand Petoit in 1921 at Harry’s New I get fed up with the category’s branding
reason bartenders favour interesting or York Bar in Paris is a respected classic, influence, so most of the time I ask if they
undiscovered and complex spirits. Indeed, and the more recent Cosmopolitan had would consider gin, or I just make them a
if you ask a bartender in London what an enormous impact on cocktail culture gin cocktail and they love it.”
they prefer to mix with right now, it’s in New York during the 1990s. Like Eric, Jon Cowley, who manages
gin, dark rum or tequila that will most Then there’s the Martini, at heart a Milk & Honey in London, is certainly
likely top the list. The same goes for New gin-based drink, but given its global not one to question a customer choice,
York and, as they are the two markets renown when Bond ordered his favourite but he also recognises the significance of
that constantly set the cocktail trends vodka variant. switch-selling.
globally, this shift is likely to reach the Even with this consumer demand “It’s not just vodka we should switch-
consumers soon. though, and competitions such as the sell,” says Cowley. “It’s anything and
Finlandia Vodka Cup, there remains everything. If people just want vodka,
Finnish line a negative response in some bartender then we’ll happily serve it, but if they like
All that said, if you wanted evidence that quarters. Vodka is undoubtedly here to vodka and are willing to try other things,
the global bar community is still happy to stay but this hasn’t stopped some trying then we should encourage them. We’re not
play with vodka then you would do well to influence choice in the bar. here to educate everyone though  p30

march 2010 drinksint.com VODKA SUPPLEMENT Drinks International 29


Vodka Cocktails

– drinking is supposed to be fun after all the opportunities in this category.” Purity Vodka then mass-produced flavours – their
– and nothing is worse than a bartender Since Velich was the overall winner signature story, process and branding have more
who thinks they know best serving in the aforementioned Vodka Cup this character than the big hitters.”
cocktails
someone who just wants a vodka soda.” takes us back to Finlandia, a brand that This could be why Chase has managed
Cowley is more than capable of making has successfully launched a number Rosie Z to capture the imagination of UK
5cl Purity Vodka
a tasty vodka beverage but, as he points of flavours. Indeed, in recent years the bartenders. There’s an apparent craft to
0.5cl Martini Rose
out, if bartenders are to use it the trick is “flavoured vodka” sector has become the process.
1.5cl Rosewater
to play with the multitude of additional important to the evolution of the category. More recently, the addition of Babicka
1 dash Angostura aromatic
ingredients at their disposal. Absolut ruled this particular roost bitters has seen the first wormwood vodka arrive
In many cases the creativity in using for many years but more recently the Method: Stir with ice in a on the scene and the team behind this
vodka comes from marrying the likes premium vodka market has seen all the mixer glass and serve in brand are confident there’s room for them
of liqueurs, fresh fruits or other spirits. players make a flavoured move. This does a chilled cocktail glass. in the market.
Approached in this way vodka has add spice to the category, but is there a Decorate with a leaf of rose. “The initial reaction to a new vodka
actually taught young bartenders much point at which the development of these is, so what?” says Alex Clarke, chief
about flavour. products can go too far? Purity Bubbles executive of Babicka. “But if you
Javier Bravo, who manages the Long American bar magazine Radius recently 3cl Purity Vodka communicate your message clearly to
Island bar in Cork, Ireland, admits he ran a list of vodka launches to the US 0.9cl Amaretto bartenders then it can work. We’ve found
enjoys working across the breadth of spirits market. It included an alarming array 0.1cl Campari the response has been positive because
categories, but is certainly not dismissive of nine new products, including Chase’s 4cl Champagne Brut bartenders can see our reason to exist.
of vodka. “It’s number one in terms of the apple vodka from the UK, a jasmine Method: Stir carefully into a There are no other wormwood vodkas on
drinks we sell,” says Bravo, winner of the flavoured vodka called (originally) cocktail glass and decorate the shelf so we have a unique quality.”
Quick Mix category at the Finlandia Cup Jasmine and a Fairtrade vodka called with a red cherry on a stick Generally though, it’s difficult to make
this year with his Finflavor concoction. “So Fair. All this in a category where there a mark in a category that has already
you have to try to appreciate the versatility are already more than 1,000 variants saturated the market and, in the end, the
– something like whisky is actually quite – and the bartender response? question of whether vodka becomes dull
restrictive in mixed drinks. “Stop it, stop it, stop it,” cries Jon because of this is entirely relevant.
“We make sure we put aside time to Cowley. “Some vodka brands just want to Fortunately for the brands
involved there remains a passion
and determination in the bartending
community that ensures some will do
what they can to make the best drinks
with the products in the bar.
“The question of whether vodka is
dull is the problem here,” says Cowley.
“Too many bartenders get caught up
in what they like/dislike/find dull etc. If
Costas Gordon Ramsay found cooking steak
regularly discuss and work with the be inspirational products. The bottle design Nicolaides, bar dull, you can bet your bottom dollar he’d
consultant
product because you always need to pay and marketing campaign has become more make sure his steak was the tastiest steak
for Shakers
attention to it. Its impact and its heritage important than the liquid. If they invested Moving Bar in you’ve ever tried.
in the spirits world means you simply half the money they spend on advertising Cyprus “Bartenders need always to remember
can’t ignore it.” into making a better product, you’d see that they’re making drinks for their
Costas Nicolaides, who works as a bar benefits in the category and more customers, not for themselves.
consultant for Shakers Moving Bar in bartenders would embrace it.” If someone wants a vodka drink, let
Cyprus, agrees and remains confident the them have it.
category has its place. “Vodka’s lack of Too much of a good thing? “If the drink is considered
complexity is what makes it useful in mixed Going back to Eric Alperin in dull by the bartender, then he’s
drinks,” he says. “I’ll drink it straight LA: “Artisanal vodkas are got to up his game and make a
and enjoy it but appreciate the versatility definitely more interesting better drink.” DI
when it comes to cocktails. The customers
actually like the fact that it’s neutral so it’s Javier Bravo: Eric Alperin: Jon Cowley:
“Something “Artisanal “Some vodka
up to us to show off the drinks.” like whisky is vodkas brands just
actually quite are more want to be
Contrasting flavours restrictive in interesting” inspirational
mixed drinks” products”
Anton Velich is an up-and-coming
bartender from Slovakian bar Rio
Grande, and he is also enthusiastic about
vodka. “It’s an important category,”
says Anton. “But we don’t only have
the standard vodkas to play with. In the
Finlandia Vodka Cup competition I could
use the flavoured varieties, which adds to

30 Drinks International VODKA SUPPLEMENT drinksint.com march 2010

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