MARCH 2012 The No.1 choice for global drinks buyers IAN STOLI'S BOOTLEG WISNIEWSKI SUCCESS BOOZE Asks what's next Val Mendeleev We investigate the for vodka p14 reveals all p20 silent problem p24 News Rathnau wins Smirnoff tops 2012 Brand by the Vodka Cup Value list inlandia has selected the 14th champion of its ive vodka brands feature in this annual international cocktail competition, the F year’s Brands by Value list, with F Finlandia Vodka Cup. Smirnoff at the top of the category, in Polish bartender Krzysztof Rathnau prevailed from a fourth place behind Johnnie Walker, 20-strong field to take the honours in Helsinki and a Bacardi and Hennessy overall. winner’s prize of US$15,000. The list – compiled by brand Contestants had to create an aperitif, long drink and valuation consultancy Brand Finance ‘quick mix’ cocktail, with a Finlandia product required to – features in the March issue of be the primary ingredient of each. Drinks International. While Rathnau accumulated the most points overall, Brand Finance created the list using Monica Berg of Norway scored highest in the ‘quick mix’ a complex matrix of calculations based category, Jarkko Issukka of Finland took the aperitif on financial results, future forecasts, round and Andrei Todosi of Romania scored highest for brand strength and ‘royalty relief’. his long drink. The other vodka brands are, at Rathnau’s long drink: Rose Marie number 11 Absolut, number 13 Grey 4cl Finlandia Tangerine, 2cl De Kuyper Sour Rhubarb, Goose, 40 Ketel One and 42 Ciroc. 1cl home-infused rosemary syrup, 4cl fresh orange juice, 4cl lychee juice, a piece of fresh mango, 15cl Schweppes ginger ale. Garnishes: melon, chrysanthemum leaves and Ads to educate flower, apple slices, lime slice, lemon slice, orange slice, Grey Goose is taking flight with Virgin Atlantic. The grape, star anise. vodka brand has created movie-inspired cocktails that about flavours Muddle mango with rosemary syrup. Add alcohol, orange will be available in the Loft at the Virgin Clubhouse juice and lychee juice. Shake with ice. Strain into hurricane at London Heathrow airport. The theme is in honour iageo GB is to invest £1m in an glass. Top with ginger ale. Garnish. of the awards season and cocktails include Le Citron D outdoor advertising campaign for Julep inspired by The Help; the Grey Goose Silent Vanilla Smirnoff to educate consumers Martini inspired by The Artist and the French Hawaiian on how to drink flavoured vodka. inspired by The Descendants. According to Diageo, vodka is the Over the coming months, Virgin Atlantic Upper largest category in the off-trade and is Class passengers can expect more events in the growing at +10% in the latest MAT, Grey Goose Loft as the brand partners with art, with Smirnoff No.21 growing ahead music, fashion and film. of this at +13%. The flavoured vodka category is growing at 18% year-on- year. Diageo said Vanilla Smirnoff has Quince is ripe for drinking “performed well”, reaching a retail sales value of £1.1m 16 weeks after its EDC has launched a quince vodka under its Soplica launch in September 2011. C brand. Soplica Pigwowa has been made using ripe The flavour range also includes: quinces harvested in 2011, in Poland. Soplica Pigwowa Lime Smirnoff, Green Apple Smirnoff extends the portfolio of Soplica tinctures (Sour Cherry, and Blueberry Smirnoff. Hazelnut, Raspberry). The new product will have an RRP of PLN 22 (£4.45). The launch will be supported with PoS and through Antek Soplica’s Facebook profile: facebook.com/antek.soplica. Pinnacle to distribute SSG in the UK and Ireland tock Spirits Group (SSG) has world’s fastest growing spirit in 2009 Some of the brands have already Sstruck an agreement with (Millionaires 2010); Limonce, made debuts in the UK and Irish The Pinnacle Drinks Partnership to which SSG claims is the world’s markets through Tesco and other distribute some of its key brands in biggest selling limoncello; Stock XO, independent retailers. the UK and Ireland. a brandy; Grappa Julia Superiore; The Pinnacle Drinks Partnership was The SSG brands include Czysta and Keglevich Fruits – a formed in mid 2011 by Steve Howard De Luxe Zoła˛dkowa vodka, the vodka liqueur. and Mike Heaton. 6 DRINKS INTERNATIONAL Launches Skyy Infusions Coconut Cîroc Peach BRAND OWNER Campari America BRAND OWNER Diageo RRP in 50ml: $1.99, 750ml: $18.49, 1l: $23.49 and 1.75l: $26.99 RRP $34.99 for a 75cl bottle MARKETS US MARKETS US CONTACT skyyspirits.com CONTACT Diageo +44(0)208 978 2749 Skyy Infusions Coconut joins Dragon Fruit, Blood Orange, Pineapple, Ginger, Cîroc is made using French Mauzac Blanc and Cherry, Grape, Citrus, Raspberry and Passion Fruit. Ugni Blanc grapes, which are distilled five Jason Daniel, brand director, Skyy vodka says: “The coconut category as a times. Cîroc launched nationwide in September whole, especially coconut waters, has seen a tremendous surge of popularity 2003. In October 2007, Diageo entered into in recent years. Campari America has elevated this trend by creating a natural, a strategic alliance with Sean “Diddy” Combs. refreshing infused coconut vodka that will appeal to both consumers and Cîroc Peach is available in 5cl, 20cl, 37.5cl, bartenders as they search for more exotic and authentic flavour experiences.” 75cl, 1l and 1.75l sizes. The abv is 35%. Platinum 7x BRAND OWNER Sazerac Company RRP $12.99 75cl MARKETS US CONTACT sazerac.com The seven times distilled vodka has been repackaged. The launch will be supported by trade advertising and the vodka is made using American grain. It comes in 1.75L, 1L, 75cl, 37.5cl, 20cl, 10cl and 5cl Valt Vodka bottles. The vodka is 40%abv. BRAND OWNER Valt Vodka Company RRP €35, £27.99 MARKETS UK, Singapore, Thailand, Malta, Spain, Italy, Germany, Austria, Latvia, Poland & Ukraine. CONTACT Valt Vodka Company, 21 Forbes Place, Paisley, PA1 1UT +44(0)1418 492090 Valt is a single malt vodka, made from Absolut London Scottish malted barley BRAND OWNER Pernod Ricard and Highland water. RRP £17.89, €21, US$28 Although it has been MARKETS UK only around for a few years, CONTACT Pernod Ricard UK 2012 marks a new era +44(0)208 538 4484 for the brand as it is The latest Absolut incarnation is a collaboration with now made at a new UK artist Jamie Hewlett. The bottle was launched in distillery, in a specially Selfridges and Harvey Nichols on March 1 and from designed reflux copper March 22, fifty Absolut London collectors’ gift pot still. The independent packs will be available to fans exclusively through company is run by partners www.facebook.com/absolutuk. The bottle will then Ricky Christie, Donald be available to the wider on- and off-trade from April. Buchanan, and Oliver Absolut London is the newest edition – and Storrie. It is bottled first European city – to feature in the Absolut at 40%abv. Cities collection. 8 DRINKS INTERNATIONAL Overview Overview he recent launch of Naga region grew by more than 1% in Corporate Landscape in Vodka Chilli Vodka (containing 2011 as the resurgent cocktail culture THE Tipple’s Vodka continued to remain a fragmented the equivalent of 100,000 and consistent promotional and NEUTRALITY category in 2011, with the top five Scoville units and coming innovation activities retained interest in AND companies accounting for only 24% of with a skull and crossbones the category in the face of any and all MIXABILITY global volumes, compared to 74% in Twarning sign on the label) fittingly socio-economic headwinds. blended Scotch. summarises vodka’s predicament. However, if the otherwise crumbling HAVE BEEN Local and regional companies dominate The ubiquitous tipple’s neutrality and Western European market looks relatively BOTH A the top of the rankings, with Diageo and mixability have historically been both a healthy, the vast majority of regions BLESSING Pernod Ricard positioned first and third, blessing and a curse, making it accessible are positively booming. According to AND A respectively, being the only international to hordes of young urbanites around Euromonitor International, vodka’s CURSE companies appearing in the top 10. the globe while gimmicky launches regional growth rates ranged from a irreverently tested the boundaries of healthy 2% in the post-Arab Spring Leading international vodka innovation, production methods or, Africa and the Middle East companies ultimately, common sense. Interestingly, to a skyrocketing 8% in advancing In 2011, Diageo strengthened its position and to the dismay and bewilderment of Latin America. as the world’s leading vodka player, purists and spirits aficionados, this has Vodka’s relevance hence remains increasing its volume share to more than the indiscreet charm also repeatedly proven to be a winning universal while the dual drivers 7% thanks to sales growth of 5%. It strategy. It still is. of premiumisation and flavour was not, however, its leading Smirnoff According to Euromonitor sophistication continue to expand the brand which drove growth but its super- International, vodka witnessed relatively category’s penetration, demographic premium Cîroc brand which continued to of neutrality healthy, if unspectacular, total global appeal and drinking occasions. perform exceptionally well. In contrast, volume growth of 1% in 2011. While this Can this last? The long and short Smirnoff saw its volumes remain static figure might appear underwhelming at of it is, yes. Vodka has repeatedly yet again and has not seen any real first, it has to be analysed in the context demonstrated its chameleon-like growth since 2008. of the mature Russian market which adaptability and remains one of Smirnoff continues to suffer from the faces the additional burden of a series the pioneers in terms of radical maturity of its two largest markets, the of Kremlin-backed legislative attacks.