Vodka. A Sippable Spirit?

VODKA

A SIPPABLE SPIRIT?

THE ORIGINS OF VODKA CAN BE TRACED BACK TO RUSSIA OR POLAND AROUND THE 12TH-CENTURY. THE HULU SERIES, THE GREAT FICTIONALISING THE BALLSY LIFE OF RUSSIAN EMPRESS CATHERINE THE GREAT, FEATURES THE ARISTOCRACY OF THE RUSSIAN COURT THROWING BACK VODKA SHOTS WHENEVER REQUIRED, A KIND OF 18TH-CENTURY PROZAC IF YOU LIKE. ITS NASTY ETHANOL FLAVOUR ENCOURAGED THE ‘KNOCK IT BACK’ CONSUMPTION METHOD. THERE IS NOTHING HERE TO SIP AND SAVOUR. RIGHT? MAYBE THEN, BUT IS 21ST-CENTURY VODKA THE NEW SIPPABLE SPIRIT?

For a long time, the United States Bureau of Alcohol, Tobacco & Firearms defined vodka as, "neutral spirit so distilled, or so treated after distillation with charcoal or other materials, as to be without distinctive character, aroma, taste or colour."

As recently as April 2020, this changed to ‘vodka is a neutral spirit which may be treated with up to 2 grams per litre of sugar and up to 1 gram per litre of citric acid with min strength of 40 % alc vol.’

It would indicate that perceptions around whether vodka has distinctive character, aroma, taste and colour are irrevocably changing, and it is giving distillers the freedom to be creative and innovative in their approach to vodka. Huzzah!

Vodka remains the biggest selling white spirit despite the world’s love affair with gin and hard seltzer. Globally, revenue in the Vodka segment amounts to AU$409m in 2021 and the market is expected to grow annually by 6.83% (CAGR 20212025). In the Vodka segment, volume is expected to amount to 6.8ML by 2025. The market for Vodka segment is expected to show a volume growth of 3.2% in 2022. (Source:Statista.com).

According to Drizly, an alcohol e-commerce platform, the biggest selling spirit in the US during the pandemic is the independently owned Texan vodka brand, Tito’s. A US online liquor retailer told Forbes magazine it was selling a bottle every five minutes over 24 hours.

Latest IWSR research shows that vodka volume in Australia grew by about +21% last year (and value increased +27%), on top of a

volume CAGR of +6% 2015-2020 (and +8% value CAGR 2015-2020).

IWSR forecasts that vodka in Australia will grow by +2% CAGR 2020-2025 (volume) and about +3% CAGR 2020-2025 (value).

Whilst still holding the lead, the popularity of hard seltzer puts vodka's previous modus operandi at risk, and well, gin is the current golden child of flavour possibility booming with brands of distinction from every corner of the world.

So how is the vodka category responding?

According to Ewen Pettit, owner and creator of Australian vodka brand, Idle Hour it’s about ramping up vodkas flavour credentials and repositioning vodka as a sippable spirit to be appreciated for its raw ingredient credentials, in his brand’s case, rye. Distillers are pushing to impart flavour from the raw ingredient through the distillation method, the filtration process and the quality and mineral content of the water used, all of which impart flavour.

Idle Hour launched in the heart of the pandemic in 2020 but has already achieved a degree of success despite the challenges indicating there is a market for vodka that is more than a cocktail ingredient. After spending time in the US marketing White Claw, Pettit says vodka has a cultural opportunity. It’s one of the biggest selling spirits in the US, and he says the huge success of Tito’s Handmade Vodka, is down to what he says is a Bourbon brand with vodka in the bottle.

“I want Idle Hour vodka to be the vodka that everybody asks for to enhance the drink they want,” says Pettit.

“From a brand perspective, we know that brands like Absolut and Smirnoff are not firing on the same neuron-level as, say Four Pillars is at the moment. There is an idea that vodka is vodka at a product level, but I wanted to shift what that expectation is fundamentally. We can create a tastier vodka.

Pettit says they have a contemporary Australian brand with a liquid that is more influenced by Bourbon and whisky. Rather than get it as neutral as possible, he says he wants to make an Australian vodka that stands out for being Australian which is why

It is going back to that belief we are trying to challenge that vodka is flavourful

– Genevieve Ireland, Belvedere Vodka.

they use local ingredients.

“Now we have started to innovate on a liquid level; we are releasing limited editions using native ingredients such as Kakadu Plum and Ginger. We have another exciting one launching in February 2022 using local flavours where provenance matters. We have launched two SKUs a filtered and an unfiltered to sip over ice, how you might drink a 12-Year-Old whisky.”

“We want to balance the rye back into the drink because we think that the rye is the most compelling part of the liquid, so we are constantly trying to feature the rye – even in our RTDs.”

Other Australian craft vodkas are following the same path. Grainshaker, for example, has produced three vodkas made from different raw ingredients, rye – powerful, rich and spicy; corn – caramel and vanilla and wheat – citrus and crisp. They say their philosophy is to distil to achieve the character of the ingredient for flavour and smoothness. 78 Degrees Distillery in Adelaide Hills distils native Boab tree tubers to achieve a vodka that moves away from the philosophy of vodka as neutral to produce vodka with the emphasis on flavour. In contrast, Seven Seasons Spirits founded by indigenous food entrepreneur Daniel Motlop in the Northern Territory produces the Native Yam Vodka distilled with two types of native

yams harvested during the rainy season and give the vodka a warm, creamy flavour with a hint of nuttiness. Seven Seasons promote the vodka in a martini to focus on appreciating the flavour and character nuances.

Polish vodka brand Belvedere is one to go even further than the raw ingredient and focus on the flavour of rye from different terroirs, much like wine, and launched the Single Estate brands Belvedere’s Smogóry Forest and Lake Bartezek vodkas in 2018. It is the first vodka brand to launch styles of vodka-based on place.

Brand Ambassador for Belvedere Vodka, Genevieve Ireland, says, “In the past, the vodka category has historically been known as somewhat tasteless and associated

with neutrality, so we champion the core ingredient of Belvedere which is our Polska rye or Polish rye.”

The reason behind the launch of Belvedere’s Single Estate range was to position vodka as a spirit with flavour. Ireland says the best way to describe it is that rye bread has more taste and character than white bread.

“The two products represent forest

Distilleries vodka brands are reconsidering what vodka is - Orlando Marzo

and sea. They are both named after the village or the state where they come from in Poland. They are 100% single grain from one location, so pioneering terroir in vodka and the impact of place on taste and character.

“You can taste the difference between the two in a lineup in terms of their flavour profile. Smogóry Forest is bolder and savoury with notes of baked bread, sea salt and caramel, while Lake Bartezek is surrounded by lakes and is much colder so that vodka is fresh and delicate with notes of menthol, fresh hay and biscuit.”

The Belvedere range has had a positive reception from mixologists and bartenders. Ireland says the two vodkas are ideally promoted through the trend for mini martini flights, and the bartender can educate the consumer on flavours in vodka.

As a brand, Belvedere challenges the belief that vodka is a neutral spirit which is a philosophy that continues through its Heritage 176 label. Technically it is not a vodka because of its lower abv; however, it is produced with an ancient Polish malting technique of heating the rye in a kiln to 176 degrees imparting a richer complex character full-bodied depth to the spirit. Belvedere promotes it as a sippable spirit and recommends serving it over ice with a lemon twist.

“It is going back to that belief we are trying to challenge that vodka is flavourful,” says Ireland.

Do consumers care? Based on the explosion of gin as a category, we think yes, which brings us to vodka and botanicals.

Vodka is moving away from the sickly, sweet flavoured vodkas of a decade ago toward creating flavour profiles with subtlety and distinction, following a path of gin without the juniper. Adding flavour to vodka has become more considered.

Infusing vodka with herbs and spices was once to mask vodkas' aggressive odours and flavours in times past. Today they act as enhancers to add extra flavour to be savoured.

Drinks consultant and mixologist Orlando Marzo says consumers are now paying as much attention to drinks as they are food.

“We get the excellent sourdough we want to know where the cheese comes from, and we are getting the same way about drinks – better vodka, better sodas, better tonics.

“In the last decade, gin has sky-rocketed because we want flavour, and we have a more educated palate. Vodka producers are either promoting the clean, pure character of the spirit or adding flavours such as botanicals or honey or barrel ageing.

Marzo says there is an opportunity to produce vodka with flavour that rides on the popularity of gin.

“Flavour is the key. Used in a genuine and transparent way, it is the key. Some people don’t like the piney, forest flavour of juniper but love other flavours.

“Distilleries and vodka brands are reconsidering what vodka is,” says Marzo.

It’s an exciting time full of flavour and promise for one of the world’s most popular white spirits.