Vodka Report
Super premium vodka brand Van Gogh is available in 19 different flavors and in wheat, gin and “regular” versions. In worldwide duty free the best sellers are Espresso, Double Espresso, Acai Blueberry, Van Gogh Blue, Chocolate and Caramel, all selling in duty free for under $25. Van Gogh’s single strongest duty free market is Israel, with Western Canada, Puerto Rico, Australia, Asia, Peru and the Caribbean all also making strong contributions. The brand is also present in the US, throughout the Caribbean, and in Europe, Japan, Taiwan and India. Van Gogh doesn’t do much airport business apart from a presence at Dallas/Fort Worth International and New York JFK. Most worldwide duty free business comes through border stores. Van Gogh is also poured aboard half a dozen cruise lines. “Van Gogh is distilled in a 132-year-old distillery in Holland,” says Kevin Smith, Export Director and Vice President for Duty Free Worldwide. Distillation is in small flavored batches, and the infusion of each batch with premium Dutch spirits, takes from six to eight weeks to attain the optimal flavor balance. Van Gogh has more five-star ratings than any other vodka, Smith says. The Van Gogh wheat vodka is made from Van Gogh Blue wheat and is the only triple wheat vodka in the world. Sales in the US and Canada have been flat lately, attributable mainly to the decision not to undertake deep price discounting the way competitors have. Fortunately, Van Gogh doesn’t have all of its eggs in one basket: international sales now account for over 40% of business and are growing at double digit rates. Smith believes product samplings and special two-for-one price promotions Van Gogh’s will be the key to unlocking draBlue Triple matic sales increases in future. Wheat Vodka
Stolichnaya Premium vodka recently announced the launch of Stoli Hot and Stoli Sticki in the travel retail market via Dufry Do Brazil, one of the largest travel retailers in Latin America. The company is offering a very special price for the launch, making the two variants mustbuys for budget-conscious travelers. Following the availability in travel retail of Stoli Premium vodka, Stoli Chocolat Razberi and elit by Stolichnaya, Stoli Hot and Stoli Sticki will launch in Rio de Janeiro and San Paulo airports with a special introductory offer of two 1L bottles for US$35 instead of the usual US$40 price. Highlighting the partnership between SPI Group and Dufry Do Brazil, the distribution agreement will give Brazilian customers a chance Stoli Hot and Stoli Sticki will launch in Rio de Janeiro and San Paulo airports with a special introductory offer of two 1L bottles for US$35 instead of the usual US$40 price
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THE AMERICAS DUTY FREE & TRAVEL RETAILING APRIL 2013
to discover the two new flavors. Originally created for the 50th anniversary of Stolichnaya flavors, Hot and Sticki are based on Stoli’s first Pepper and Honey & Herb flavors, introduced in 1962. Tasting bars will allow shoppers at the airports to sample the two flavors before they purchase. Stolichnaya has remixed the original 1962 recipes to achieve “the perfect taste” for both flavors, produced using the brand’s four-stage filtration process. Stoli Hot offers the warm, fiery flavor of jalapeño peppers, which Stolichnaya says is “spicy on the palate, yet with a delicate smoky quality, making it ideal for Bloody Marys or drinks with a kick.” Stoli Sticki takes its cues from the candied taste of premium honey and incorporates complex floral notes to complement its sweetness; “the perfect vodka for a Sticki Moscow Mule,” Stolichnaya said. All of Svedka’s flavored vodkas are distilled five times
Care in choosing price point is key to the success of the Svedka Vodka brand, says Willy Brevet, Divisional Director – Spirits for Stansfeld Scott. “We’re at about two-thirds the price of Absolut,” Brevet says, “but at the same time we’re not an entry level either,” he says. “That price point attracts customers who are looking for that kind of value product, something that’s trendy, young and fresh.” Brevet adds that Svedka, which was named an Impact “Hot Brand” last year, has built its market success on prestige and quality, as well as on price point. Svedka is one of the top ten fastest growing spirit brands, in addition to being the second largest imported vodka in the US, Brevet says. The focus is currently on local markets, but Brevet notes that placement in duty free is important for the development of Svedka’s new Colada is promoted as the brand in the a consumer “experience” purchase Caribbean. Brevet and has redesigned packaging expects customers from the Caribbean and Central America to make up the bulk of visitors to the brand’s IAADFS booth. For 2013, Svedka has expanded its distribution by around 50% in the domestic and duty free markets. The Caribbean has taken to the new Svedka Colada, a blend flavored with Indonesian coconuts, pineapple and a hint of mango. Other flavors in the vodka range include Citron, Clementine, Grape, Raspberry, Vanilla and Cherry. The new Colada is being promoted now as a consumer “experience” purchase, with a grassroots strategy that tailors promotions and brand building to the characteristics of each individual market. Colada was launched in redesigned packaging, with targeted promotions in North America and some global markets scheduled for this year. Also, just like the other Svedka flavors, it is distilled five times.