Spirit of invention

The vodka juggernaut rumbles on, driven by the usual mainstream suspects – but it’s in the premium sector where innovative points of difference are being developed.  Patrick Schmitt reports

YOU SAY POTATO… I say triple-distilled and charcoal filtered. You say tomato… I say yes and Tabasco.  Bloody Mary! It’s just vodka – or is it? There’s a new message being bandied around by those behind the UK’s fastest growing spirit, one aiming to differentiate vodkas in terms of taste by exposing the varied ingredients of this colourless spirit, as well as the many production techniques.

Rye or potato, pot or continuous still, charcoal-filter or glacial meltwater, the new lure is not the look of the label or the country of origin but nutty notes and a buttery finish. So whatever your mixer, it’s hoped consumers won’t simply shout vodka, but Zubrowka, Wyborowa or should it be Stolichnaya?  Actually make it Grey Goose.

There’s good reason for this proliferation of brands, however, and their increasingly premium positioning, as the sales of vodka have been increasing at some 7%, compared to growth in the overall spirits category of 3.1% (ACNielson MAT 2003 on 2002, vol), while the super-premium or luxury category (best defined as vodka retailing at £18 plus per bottle) has leapt from 2,000 cases at the turn of the millennium to around 10,000 to 12,000 today.

And this sector is significantly bigger in the States at around 1.5m cases where the US$15 Martini made with a range of top-end vodkas is hardly rare.  In fact, talking of the Martini, it is the mixability of vodka coupled with the craze for cocktails, especially the current one for Cosmopolitans, that’s most probably driving the category.

But, it must be remembered that the majority of vodka consumed is still the more mainstream versions, with Smirnoff accounting for 2.3m of the 6m cases sold in the UK last year while the top two or three brands serve over 50% of the market by volume.

The largest premium brand is Absolut, in fourth position, but at only 120,000 cases it is some way behind Smirnoff, Grants and Vladivar.  In fact, premium vodkas account for only about 5% of the market, while the real growth is being "driven by Smirnoff and own-label vodkas," according to John Burke, marketing controller at Bacardi Martini.

While certain niche vodkas have shown impressive increases, it is from a very small base, or in many cases from nothing.  However, this is why the latter are interesting. They have not only managed to crack a sector but create a category – a luxury level – and in a short space of time.

Furthermore, the technique employed – selling taste – is surprising for a spirit traditionally famed for its lack of flavour.  An often used approach is to sell the primary constituent of the spirit. Polish vodkas, Belvedere and Wyborowa for instance, have used rye as their point of difference, which results in a sweeter taste than usual, while Finlandia, a brand which boasts a "six-row barley" base, has more spicy, nutty notes.

Grey Goose has gone a stage further, pioneering a multi-grain style, using a blend of wheat, barley and corn as well as rye. Furthermore, it’s French, which is hardly traditional vodka producing territory, proving that having heritage isn’t necessarily key to conquering this new class of vodkas.

It’s not just the initial ingredients that companies are currently promoting for their brands, but the number of times the product is distilled as well as the method.  You see, it’s not just about taste, but "mouthfeel", or how smooth the vodka is, and to achieve the desirable silken qualities of a premium vodka some advocate repeating distillations as many as five times.

On the other hand, others, famously Ketel One, believe a pot still is preferable. Filtration is a further selling point, with Stolichnaya passed first through quartz sand and then through birch charcoal, while Wyborowa is famed for a triple filtration.  And don’t forget the water content of vodka. 

In Finlandia this is glacial meltwater, while for Thor’s Hammer it’s liquid drawn fresh from an aquifer.  Of course, no proliferation of brands would be complete without a few playing the environmentally-friendly card, and America’s Rain promotes an organic grain base while the British challenger, Utkins UK5 uses organic rye. But, despite the worthy intentions, it is difficult to detect any particular benefits flavour-wise from using organic grain, partly because neither brand produces a non-organic equivalent with which one could compare.

Nevertheless, for all the product tales, the packaging still counts, and premium vodka manufacturers have produced some particularly striking designs to stand out in back bar displays and entice consumers.

In fact, there are already certain cues communicating class in the top end of the category. Notable are the unusually tall and slim bottles, seen with Belvedere and Chopin, while frosted glass is another cue, especially if it includes a window through which a picture can be seen.

Overall though, clear glass is a definite signal as are plain designs. For example, much of Facile & Co’s success with their Seriously vodka – which should hit 40,000 cases this year (0.5m bottles) despite only being launched at the turn of the 21st century – can be attributed to the packaging, which "people love because it’s very simple," according to marketing and operations controller Intersar Haquani.

Furthermore, it leaves plenty of space for personalising the label, something the brand first did for W1’s Wellington Club, which wanted to have the names of regulars printed on the bottles, for instance "Seriously… Kate Moss".

The venue was given one year’s exclusivity but now Facile is using the idea with other bars, printing personalised labels, using logos as well as names, and "the idea has really taken off," comments Haquani.

Another interesting example is the soon-tobe- launched VK Vodka 37.5% ABV from GBL International.  This is because it has an identical bottle design – only the colour is different – from the 40%ABV more expensive VK Pure Vodka, making it "a premium vodka for the mainstream," according to Andrew Bond, creative manager.

Furthermore, while most seem to be producing more luxury lines, CBL International is attempting to tap into the wider market for the spirit with this equivalent of a house vodka. But there aren’t any rules with vodka packaging, and anything from coloured glass to aluminium, like the Danska bottles, is apparent.  Nevertheless, as with other spirits categories, shelf standout is key.

However, back to what’s inside the bottle, because if there is a clear trend among nearly all vodka manufacturers, it is the addition of flavoured versions to their brand portfolio. These have increased 12% over the last year, and although not a revolutionary concept – Zubrowka’s bison grass vodka’s been around for about 400 years – many have only recently gone the flavoured route to develop the market.

For instance, Stolichnaya last year added to their Vanil and Razberi with a Strasberi; Absolut has expanded its range with a vanilla version, this time in a frosted bottle; Seriously has introduced Pinky and Finlandia has just launched a clear cranberry vodka.

The idea of these spirits with a fruity zest is to increase the versatility of vodka for the barman, adding a twang to the flavour, but without diluting the drink.  However, while some have suggested these new fruity drinks may be replacing the originals not supplementing them, Cariel, a new Swedish brand distributed by Facile & Co and launched onto the market in May this year has started with a vanilla vodka – the flavoured spirit is its original.

It seems these ever more imaginative vodkas are not only reacting to a consumer demand for more choice, but also to the current growing interest in cocktails. RTDs, many believe, have had their day, with people preferring to interact with a bartender when it comes to ordering drinks.

"There is a trend towards seeing a real drink mixed," comments Cathryn Sleight, ADUK marketing director, "and this, I believe, is a long-term trend, not a fad."  However, CBL’s Bond disagrees, commenting: "Flavoured spirits are part of the cocktail syndrome, they burn brightly for around eight months and then die down again."

But, whatever the time span, it’s space in the shaker most are marketing for. With vodka making up 28% of spirits in the on-trade (2002) – 24% in 2001 – it’s a large share, and one brands are scrambling to dominate.

At the luxury end of the market the approach seems to revolve around creating exclusive drinks recipes – for example Belvedere’s couture cocktails which include an Alexander McQueen Belvedere Martini – and the aim is to create combinations "that really show the flavour of vodka," according to Emily Gleed, brand manager for Stolichnaya at First Drinks, who use mixologist Alex Kammerling in their campaigns.

Finlandia, which is also trying to differentiate vodka by taste, is educating bartenders with its Finnishing School, because "barmen don’t understand why they should use a premium over let’s say a Smirnoff," according to a spokesperson for Finlandia. "We need to raise the awareness of vodka and so we are helping to educate people who are the front-line between a brand and its customers."

As for flavoured vodkas, well it seems that creating various concoctions with catchy names is the best policy.  Thus, we have Cariel’s Carieltini, a vanilla vodka Martini or Wyborowa’s Appletini, both of which are used to promote their respective flavoured spirits.

And for these brands, a mixture of PR, sponsorship and word of mouth recommendations seems to work best.  "Our target audience enjoy discovering brands, they don’t like being marketed at," explains Gleed.

"However, we do work with outlets within the topend style arena to drive the visibility of Stolichnaya in its natural environment."  But while this is all very well – and some are starting to "drink less and better vodka" according to Terry Barker, joint director of Cellar Trends, distributors of Grey Goose in this country – the majority who drink vodka aren’t interested in its taste.  For that you need a rare breed, the spirits purist.

And in any case, as mentioned at the start, the real volume drivers are the mainstream brands who rely on advertising to promote their product, not tastings.  

As James Pennefather, marketing manager for Smirnoff at Diageo GB comments, "Consumer advertising has driven Smirnoff vodka in the UK, from the ‘Through the Bottle’ campaign in the 90s to the current ‘If Smirnoff Made…’ campaign."

While Vladivar, the number two vodka brand in the UK (value), is soon to receive a boost from brand owners Whyte and Mackay.  The company has announced a £50m spend on promoting the product using TV and press advertising to "communicate Vladivar as a confident, witty and straight-talking brand," according to Glen Gribbon marketing director at Whyte and Mackay – an approach that instantly smacks of Absolut, a brand known for its humour due to its advertising.

The target market for Vladivar’s campaign will be 18 to 24 year-olds who, although accounting for only 11% of the population, represent 35% of heavy vodka consumers, according to Gribbon.

But what about the taste? Where’s the hype about primary ingredients, distillation, even filtration. Where’s the Vladitini? Well, think about it. Most of us just want a vodka with their mixer. Some may ask for JD and coke but very few ask for GG and tonic.