Abstract
With over 40 data tables providing total consumption volume for all major
markets and brands, this latest edition of our popular global market review of
vodka provides an excellent overview of the historic, present and future
market for the sector. This edition includes 2008 actual full-year volumes,
recently updated by The IWSR. Vodka is the most dynamic category in the global
spirits industry today. Not only is it the largest global category with total
sales of 512.7m cases (2008), but its growth trajectory has been nothing but
phenomenal. Over the course of the past 20 years the category has added a
staggering 246.7m cases (a CAGR of 3.5%).
Much of this growth has come in the vodka belt countries of Russia and Poland,
where there has been a move from unregistered to registered brands. In Russia
alone legal sales increased by 21m cases over that 20-year period. That has
been driven by tighter government controls and rising affluence.
The US has been the other major source of growth, rising by 21.2m cases over
the 20-year period. Sales in the US look set to continue growing due to the
favourable demographic profile there. Other major contributors over that
period include the UK (+4.48m cases), Germany (+6.1m cases) and Canada (+1.8m
cases).
Vodka' s performance has also been impressive due the breadth of markets
enjoying growth. Vodka has enjoyed considerable growth across a broad spectrum
of markets. Between 2004 and 2008, vodka posted gains in 41 of its top 50
largest global (domestic) markets. In many of these it was double-digit CAGR
growth.
This new edition of vodka has been completely written from scratch and follows
on from where last year' s edition concluded.
Chapter 1 Scope of the market
This chapter provides analysis of the major issues facing the global vodka
market. With extensive extracts of interviews with the leading brand players,
it discusses the premium evolution, how a new frugality is reaching the
previously high-growth markets such as the US (Davide Campari-Milano SpA group
marketing director Cesare Vandini: "We are seeing some trade down from the
super-premium. Skyy is definitely benefitting from this and gaining share."),
whether downtrading is here to stay, loyalty towards established brands, venue
shifts, the growing cocktail culture, flavour and packaging innovation, and
how Eastern Europe groups are establishing their place in the business.
This chapter contains the report' s overview data comprising world vodka sales
from 2004 to 2014 for each major market. This table contains data for 30
markets - all with historic data up to and including full-year 2008 and
forecasted data to 2014.
Chapter 2 Market reports
This chapter reviews each of the key markets for vodka worldwide, commenting
on their 2008 performance and providing data (typically 2003 to 2008 volumes)
for the top ten brands and top five owners in each of the key markets.
Strategic acquisitions, consumer trends and interviews with the key brands all
feature.
Commenting on the US market:
Finlandia Vodka US brand manager Nick Nelson says: "The poor economy has
impacted the vodka category as the super-premium and premium brands' - Grey
Goose, Absolut, and Stolichnaya - performance has softened, while the
popular priced and value brands - Skyy, Svedka, and Sobieski - are seeing
strong growth. This would be a strong indicator that consumers are trading
down significantly."
Comments on Russia:
Consumers are trading down to cheaper versions. The premium and import
segments, in particular, have been hard hit. Diageo Eastern Europe and Russia
marketing director Mark Sandys says: "The biggest impact on sales has been the
drop in consumer demand since the impact of the crisis was felt in Russia in
December. With disposable income and consumer confidence falling, consumers
have traded down in vodka and imported spirits. Across the total spirits
category, there have been some price rises since February, as you would expect
in a high inflation environment, but not at a greater rate than in previous
years.
"The crisis in Russia has changed the dynamics of the drinks industry and our
strategy has been to adapt our portfolio and our offering to meet these
changing demands. For the medium- and long-term, premiumisation and
super-deluxe spirits will remain very relevant in Russia. In the short term,
however, it is important that we also build brands at a wider range of price
points to provide great value for consumers."
Starting with the Americas, the chapter moves on to Eastern and Western
Europe, Asia, Australasia, South Africa and finally reviews the travel retail
sector.
Chapter 3 Leading companies
This chapter reviews the key players' strategies, developments, brand plans
and features interviews with the leading companies. Profiled companies:
Diageo, Pernod Ricard, Central European Distribution Corporation (CEDC),
Bacardi-Martini and Campari.
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