StateWays is the only magazine exclusively covering the control state system within the beverage alcohol industry, with annual updates from liquor control commissions and alcohol control boards and yearly fiscal reporting from control jurisdictions
Issue link: http://read.uberflip.com/i/821685
FLAVORED VODKA | CATEGORY UPDATE Whiskey Punch? The question of whether the rapid rise of fl avored whiskey products is impacting the vodka category is open to interpretation. Some believe the two are competing for the same cus- tomer, others think the spirits are aimed at different consumption occasions. Still others are more sanguine. "Flavors are encouraging trial in new categories across the board," says Heaven Hill's Josh Hafer. "Both fl avored vodkas and fl avored whiskeys are experiencing similar fl avor trends and welcoming consumers through an approachable way to try the product." "Flavored whiskey has not hurt fl avored vodka tremendously, because they don't really compete head to head," McCormick's Burnette says. "Flavored whiskey is more of a shooter, but the typical fl avored vodka drinker is enjoying it in mixed cocktails." "The weakness in growth of fl avored vodkas was likely due to some cannibalization from other fl avored products—primarily fl avored whiskeys," says Ozgo at DISCUS. "Brown spirits as a category are on the rise; fl avored whiskeys are merely a natural part of the expansion, similar to how fl avored vodkas rose alongside the vodka category," Rob- erson adds. "The vodka drinker and whiskey drinker are different. However, we are seeing that many legacy vodka drinkers are now switching over to the whiskey category because brown spirits are currently trending." "We see fl avored whiskey as an entry for consumers into that category, not detracting from vodka" says SKYY's Black. The VP is bullish on the category as a whole, predicting a bright future. "We see vodka continuing to grow at low single digits, which is impressive for a category of its size." StateWays | www.stateways.com | May/June 2017 38 FRUIT FORWARD Indeed, the consensus is that fruit is the current "it" vodka fl avor. "It seems the fad for confectionary fl avors has diminished. But the more mainstream fruity fl avors have remained strong and we are starting to see a fl urry of new fruit fl avors coming on the market," says Ken Burnette, Vice President of Sales and Marketing for McCormick Distilling Co. The company's 360 Vodka brand counts a dozen fl avors in its portfolio; the most recent release was 360 Red Delicious Apple. "Classic fruit fl avors are the most popular within the fl avored vodka category," says Russ Pareti, Brand Director for Stoli Group USA. "As the fl avored vodka market became fl ooded with superfi cial and artifi cial fl avor offerings, consumers experienced fl avor fatigue." Among the top fl avors from the leading vodka brands in Control States are citrus, peach, apple, pineapple and various berries, according to NABCA data. The only non-fruit entrant is Pinnacle Whipped. "Pinnacle Vodka's portfolio consists of roughly 30 fl avors, with Pinnacle Whipped continuing to play a key role as the brand's best-selling fl avor," says Clayton Wai-Poi, Vice President of Marketing for Beam Suntory Vodka Brands. Classics such as Peach and Citrus are also best-sellers.