Stateways

StateWays - May/June 2017

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

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StateWays | www.stateways.com | May/June 2017 40 FLAVORED VODKA | CATEGORY UPDATE LEADING FLAVORED VODKA BRANDS IN THE CONTROL STATES (9-Liter Cases) BRAND SUPPLIER 2015 2016 % CHG % SHARE New Amsterdam Peach E & J Gallo 214,420 179,826 -16.1% 5.7% Absolut Citron Pernod Ricard 106,644 107,154 0.5% 3.4% Pinnacle Whipped Beam Inc. 111,906 106,680 -4.7% 3.4% Smirnoff Raspberry Diageo 89,193 95,202 6.7% 3.0% Ciroc Apple Diageo 23,001 94,915 312.7% 3.0% New Amsterdam Pineapple E & J Gallo 100,089 92,876 -7.2% 2.9% New Amsterdam Berry E & J Gallo 96,293 84,726 -12.0% 2.7% UV Blue Raspberry Phillips Distilling 60,827 58,745 -3.4% 1.9% Ciroc Peach Diageo 74,560 55,860 -25.1% 1.8% Ciroc Red Berry Diageo 55,368 44,486 -19.7% 1.4% Top Ten Leading Brands 932,301 920,470 -1.3% 29.1% Others 2,242,295 2,237,592 -0.2% 70.9% Total Flavored Vodka 3,174,596 3,158,062 -0.5% 100.0% Source: NABCA data. For more data and analysis, visit www.BevInfoStore.com. fl avor introduction every week. Some companies churned out half a dozen or more in a year, throwing new varieties out there to see what stuck with consumers. Now releases are at a more measured pace, with an eye on macro trends and backed by research. "Most of the vodkas that have a very large portfolio of fl a- vors, or are launching a new fl avor every couple weeks, tend to use fully synthetic or 'nature identical' fl avors," says Grey Goose Global Ambassador Joe McCanta. "Much like a chef se- lecting the best ingredients fresh from the farm to use in his or her creations, when you really focus on the quality of the ingre- dients, you're not able to put out a huge range of fl avors." That's why Grey Goose offers only fi ve fl avors, with Grey Goose La Poire the best-seller. "As the vodka category continues to grow, consumer tastes will naturally change with it," says Hafer at Heaven Hill. "When considering new fl avors, thoughtful research and analysis goes into each decision to add a product to the portfolio." "Overall sales in beer and soda are declining, so it is very likely that consumers are looking for varying fl avor profi les that appeal to their palate," Robertson notes. "Cîroc takes a lot of time to research seasonal fl avor trends so that we make sure that when we launch a new fl avor, it is on par with what our consumers are looking for at the moment." MAKING ADJUSTMENTS In addition to making more thoughtful decisions about future releases, many companies are taking a closer look at their port- folios to identify best-selling SKUs and weed out any slow sell- ers. The idea is to focus resources on core products. "We have made some adjustments," says Burnette at McCor- mick. "We've weeded out some of the quirkier additions (like 360 Cola and 360 Buttered Popcorn), and have concentrated on our core fruity fl avors plus 360 Double Chocolate." Best-sellers include 360 Georgia Peach and 360 Huckleberry. "For a time, we had moved away from our core citrus range, but with Absolut Lime, we are focusing on injecting life back into citrus," Guastaferro says. The company is also taking a closer look at the entire line. "Today we have about 17 fl avors, but we will be rationalizing our fl avors down to 10 over the course of the next 12 months." Besides citrus, other strong fl avors like Ruby Red will play a part in the slimmed- down portfolio. Pinnacle Vodka has refocused its portfolio to meet evolving consumer demands, Wai-Poi says. As part of this shift, Pinnacle Vodka's primary focus is on its Original Vodka, as well as Citrus, Peach, Tropical Punch, Raspberry and Cucumber. "We look at our lineup of Skyy Infusions regularly," Black says. The strategy is two-pronged: a focus on a core set of fl avors and annual releases of new fl avors—only one this year. "Other fl avors address regional needs or cocktail needs," he says. "We are rigorously looking at those, and products that don't perform up to our standards will be discontinued." • THOMAS HENRY STRENK is a Brooklyn-based free- lance writer with over 20 years experience covering the beverage and restaurant industries. In his small apartment-turned-alchemist-den, he homebrews beer kombucha, and concocts his own bitters and infusions.

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