Vodka, a Clear Point of Difference

In these lean times, the vodka category has adopted a strategy of diversification to maintain consumer interest and minimize the risk of failure. People can find a raft of new packaging formats, interesting flavors and inventive pre-mixes.

In drinks, there’s little that’s more flexible, mixable and multifarious than vodka. With a presence at the cheapest end of the spirits scale, as well as luxury labels at the top, not forgetting the many flavors and ready-mix variants, it’s extremely well placed to weather the economic storm.

Hence the raft of new packaging formats, ever more unusual flavors, and increasingly inventive pre-mixes.

Further, to compel customers who have been going out less and looking for cheaper products vodka brands have been altering their marketing mix. As Richard Brown, managing partner at Cognosis Consulting, witnesses: “Over the last year to two years I have seen a move away from a reliance on the on-trade as the principle brand-building mechanism. Brands are built through experience, but that need not be in the bar.

“As a result there’s been more enthusiasm for integrated campaigns: advertising with PR and sponsorship associated with admired celebrities as well as social networks.”

“A good example is Russian Standard, which has achieved a very rapid establishment and growth by getting its advertising right in TV and cinema, doing on-trade events along with on-pack promotions in the off-trade. Together these have driven recruitment and trial.”

Interestingly, upmarket Moët-Hennessy-owned vodka Belvedere has, according to Claire Smith, head of spirit creation and mixology, “had its busiest year in 2009”. Boosting the brand was four different US-based product launches, two of which were unveiled in the off-trade first, “to support what is an interesting market for us”, explains Smith, who admits that “the on-trade has slowed down a bit”.

As for the flavors, Smith stresses: “It’s important to be natural, not artificial, and we’ve had a huge uplift on our macerations which have worked well with females.” As she sums up: “Yes vodka is becoming a commodity in the US but some are withstanding that.”

Overall, vodka is trying hard to adapt to the trend towards increased at-home consumption and bringing back the RTD – even if it now has a different name – is one seemingly successful reaction. The latest pre-mix launches are an attempt to emulate the cocktail experience, as well as offer a convenient, low-cost and consistent taste of well-known combinations.