Diageo seeks to regain vodka volumes with Ursus

Eyebrows were raised this week as Diageo announced the launch of a new vodka in the US, seemingly in competition with its market-leading Smirnoff brand.

However, a closer look at the product and its positioning suggests the company is cleverly seeking a way to claw back volumes lost to cheaper brands in recent years.

Ursus Vodka – a line of brightly-coloured, flavoured vodkas – was launched this week. The name is Latin for “bear” and the vodka is triple distilled and comes in Original, Blue Raspberry, Green Apple and Punch varieties.

Despite Smirnoff’s dominance of the category in general, Diageo has nevertheless noticed that recent newcomers to the sector, such as Glen’s and the lower-abv Vodkat, have been stealing away consumers who are perhaps looking to part with slightly less cash for their vodkas.

While the company enjoys success in the mid-to-top ends of the US market with Smirnoff, Ketel One and Ciroc, it was missing out on the lower-end of the scale. Ursus, at $10.99 per 750ml bottle, aims to plug that hole.

“We know our party-faring consumers are constantly searching for new ways to stand out at their gatherings, but without breaking the bank,” said Adam Rosen, Ursus brand director.

“Ursus vodka’s attention-grabbing liquid, quirky polar bear logo and color-changing label makes for a vodka with tons of personality and just the right dose of light-hearted fun at an affordable price.”

The launch will be supported by an integrated marketing effort that includes promotions, event sponsorship and merchandising, in addition to digital media buys.

Alan Lodge, 30.06.2010