The Colossus Known as Vodka

but
subtle signs of a
pending shakeout appear to be looming. Perhaps more
expectation than signs, really, especially as vodka is still
the most consumed spirit in the market and goes into nearly
one out of four cocktails ordered. Overall, vodka is
expected to grow by another two million cases when data for
2OO6 are complete, bringing sales to 48 million cases.
Nothing is likely to happen in less than two to five years,
say some industry insiders, but given the sheer number of
brand rollouts in the last 12 to 18 months, a change is
inevitable. “Last year there were over 3O new vodka entries.
Based on that I still have not seen a slowdown, but it has
to come eventually,” says Aleco Azqueta, Group Marketing
Manager for Grey Goose Vodkas at Bacardi USA. “The success
rate of launching a new product is not high. It requires a
long-term commitment on both the financial side and being
incredibly passionate about what you’re selling,” he
says.

“Vodka is the
largest and fastest growing category within all of the
spirits. While there is no sign of a slow down, there does
seem to be a shakeout of brands,” observes Adam Rosen,
Senior Brand Manager of Stolichnaya at Pernod-Ricard. “The
vodka shelf has gotten too large and the smaller players are
being replaced with additional SKUs and new flavors from
brand leaders such as Stolichnaya,” he says. “The market
will shake itself out at some point, but now it’s still on a
huge growth trend. It’s not going to be like a bubble
bursting. As new vodkas are launched, others will
disappear,” predicts Tim Murphy, Senior Brand Director for
Absolut and Level at Absolut Spirits. “It’s hard to maintain
consumer and bartender attention. If you don’t have the
resources to do that you’re going to lose out,” he remarks,
saying, “I’d love to tell you there’s a magic formula, but
it’s a lot of blood, sweat and tears. Driving awareness,
working almost on an account by account basis, programming
the brand, getting it on menus and where retailers are
ordering the brand.”

While it’s
important to advertise, says Murphy, “You also have to get
[your vodka] into peoples’ mouths and into the
hearts and minds of bartenders. A bartender has to
understand what makes your brand different and better than
others out there.” Adds Mark McKethan, President of Soyuz
Victan USA, which launched SV The Silk Vodka last fall, “It
takes very sustained marketing. Don’t count on seeing
profits before revenue for a long time.” Some estimate that
it takes a minimum of $2O-million to launch a new vodka
brand successfully in the US, which helps weed out the
wannabes from brands that grow and thrive.

Along those
lines, one notable and growing trend is the number of
Russian vodkas being launched or re-launched in the super
premium and ultra-premium categories. Among these are SV,
Zyr, The Jewel of Russia, Russian Standard and Imperia. Of
course, Stolichnaya was the Russian vodka that started this
trend in America long ago, and the brand is still strong.
“Part of our research says ‘smooth.’ People are looking for
a very smooth taste in a vodka and there’s not necessarily
an association with smoothness in a Russian vodka. They’re
perceived as a bit rough,” says McKethan, noting that
smoothness is one of SV’s key selling points. “If we could
create our own niche and image, there’s enough new volume
coming into the category that we could enter without having
a negative effect on any other vodka out there. We believe
there’s a big enough pie for anyone willing to do it
correctly,” he says.

The Jewel of
Russia’s two vodkas, Classic (about $32 retail) and Ultra
($7O), have been in the market for a few years, says Art
Saguirian, President of BMC Imports, which imports and
markets the brand in the US. The brand also has cranberry
infused and bilberry vodkas. “We targeted mostly American of
non-Russian descent in their 3Os and 4Os with high
disposable income. These people can make their own judgments
and are not worried about looking cool or being hip,” he
says, adding, “We don’t want to play those hip games. Just
taste this without prejudging it.” Saguirian says he will
increase advertising this year, while focusing on the
Russian population, as well as visiting markets and high end
restaurants.

New vodka brands
must have two things to survive, says Drew Beaver, US
Communications Director for Russian Standard, which imports
the Imperia and Russian Standard Original brands to the US.
The brands launched last year in New York, Florida and other
major markets, and launched in Massachusetts in April.
“First, the scale and cash investment needed to compete in
an incredibly competitive category. To try to crack this
they need the resources. And two, they need the ability to
stay the course. You’re not going to become number one
overnight. You need to make investments for the long term,
an ability to invest year in and year out to build a brand
and slowly creep up to critical mass volume,” he says,
noting that, “some of the larger, public companies have a
short term mentality.” Also, he stresses, “If you’re going
to compete in a luxury category, you better have a luxury
product. American consumers aren’t going to gravitate away
from vodka, they’ll just get more sophisticated about
vodka.”

Russian
Standard, founded by Russian billionaire Roustam Tariko, is
also that country’s largest credit card company and spirits
importer. This, notes Beaver, positions Russian Standard’s
US portfolio with these two critical elements. “We are
absolutely in this business to be the number one premium and
number one ultra premium vodkas. We’re intent on doing in
the US what we did in Russia. As long as it takes, whatever
investment it takes, we’re willing to do that because
there’s a significant prize. “Our vodkas are made and sold
in Russia, and Russian Standard Original is the leading
premium vodka sold in Russia. Consumers intuitively believe
vodka comes from Russia. Scotch and tequila are married with
the authenticity story. If you go in and say ‘This is the
number one premium vodka in Russia,’ bartenders say ‘Oh,
that’s interesting,'” he observes.

While Russian
vodkas are looking to control an ever wider swath on back
bars and store shelves, some less traditional vodka
producing countries are looking for a place at the table.
Ireland may be known for its stout, whiskies and creams, but
Boru, named after Brian Boru, the last great High King of
Ireland, is looking to add vodka to the list of products
with an Irish heritage. “Straight forward and true, the way
vodka was meant to be” is how Bob Battipaglia, Eastern
Region Vice President of Sales for Castle Brands, describes
Boru. Massachusetts is Boru’s #1 market and Battipaglia
attributes this to the strength of the vodka category here
and the fact that Irish products have always done well in
the state. In order to highlight these qualities, Boru has
introduced a new package, featuring a clear bottle and
painted label.

Price doesn’t
seem to be a detriment, either, as vodkas priced at $33 and
above are the fastest growing part of the category, says
Sarah Gorvitz, US Brand Manager for Chopin at Moet Hennessy
USA. “The luxury consumer is generally not sensitive to
price. If you change the price, they’re going to still keep
buying your brand because it’s the brand they like to have
in their house or call for. A lot of people stick with
Chopin and become true brand loyalists because it’s so
different from other vodkas in the market,” she says. One
new approach she is introducing this year to restaurants is
the idea of cocktail and food pairings, along the same lines
as wine pairings. “Last year we had a huge event in New York
to introduce this concept. We saw it as a genuine
opportunity to talk about Chopin in a different way,” she
recalls.

Grey Goose
certainly proves the point that luxury vodkas sell as the
brand continued its remarkable surge growing almost 26% from
2OO4 to 2OO5 and reaching the number two import spot,
according to the 2OO6 adams liquor handbook. Azqueta
comments, “Our consumers have made up their minds that Grey
Goose is indeed the world’s best tasting vodka. Our
advertising serves as a reinforcement of the quality of the
brand, but is not the driver for the success of Grey Goose.
In the end the success of Grey Goose can be attributed to
the discerning taste of our sophisticated consumers.” He
adds, “Grey Goose can stand on its own. It has the perfect
composition of taste, quality, and image. There are numerous
super premium vodkas that have been very well supported
entering the vodka category and are unable to occupy the
same space with sophisticated consumers as Grey Goose.” In
addition to introducing their newest flavor, La Poire, this
winter, Grey Goose launched a Social Responsibility program
in February. Azqueta explains: “Grey Goose worked with
Rolls-Royce to create two customized Grey Goose branded
Extended Wheelbase Phantoms which will serve as a platform
to promote the social responsibility message. Throughout the
course of the program, the chauffeured Grey Goose
Rolls-Royce Extended Phantoms will make appearances at
charity and key media events where celebrities will ride in
the vehicles and serve as role models, delivering
testimonials and endorsing the idea of social
responsibility. We will also continue our sponsorship of two
time US Open winner Retief Goosen, further solidifying our
association with the world of golf. From a trade standpoint
we will be bringing the creator of Grey Goose, Francois
Thibault, to give trainings throughout the year.”

Not to be left
behind, Pernod-Ricard is planning a major new advertising
program for Stolichnaya, according to Rosen. “Stolichnaya is
going to launch our new advertising campaign in Spring 2OO7.
The campaign, consisting of TV, print, out of home and
internet will focus on Stoli’s brand proposition – a
pioneering authentic vodka from Russia. We will be spending
2O percent more in media than we have in the past year and
look to take our Stoli message of ‘authenticity’ through the
line via event marketing and PR,” he describes. “Stolichnaya
is a genuine authentic Russian vodka. The mother of all
vodkas, from the motherland of vodka. All of the new vodka
brands lack the heritage and tradition which Stolichnaya
possesses and we are excited to continue to build awareness
on Stoli, the first imported vodka ever to be sold in the
US,” Rosen continues. “Pernod-Ricard continues its focus on
the Stoli mother brand and our flavor franchise including
Blueberi. Elit, Stolichnaya’s ultra-luxury offering, will
continue to see investment as demand for the most expensive
and best tasting vodka grows throughout the country. FY 2OO8
will see Elit’s investment in advertising and below the line
activity double,” he says.

“It’s not just
about marketing. It’s hard to fool the consumer about
quality,” echoes William Eldien, President and CEO of Nolet
Spirits USA, the owner and importer of Ketel One. “Nowadays,
with $9 to $11 for a martini, you want to be sure you’re
getting a quality product,” he says, adding “We sell Ketel
One more like a fine wine than a spirit. We conduct seminars
for wait and bar staff about how Ketel One is made and how
to tell a potato vodka from a wheat vodka.” In 2OO6, Ketel
One sales volume grew 11 percent with cases sales of 1.7
million, he says, with Ketel One Citron growing at 18
percent and selling more than 1OO,OOO cases. Still, Eldien
says, even while on-premise vodka consumption continues to
grow, “The size of their bars is becoming smaller. And at
retail level, there’s no doubt they’re just not going to
carry 25 or 3O vodkas on their shelves. I think we’re
starting to see some leveling off from the six to eight
vodka brand accounts.” Once again, “People are saying it’s
ok to have a cocktail or a couple of drinks at a restaurant
with friends,” he says. “The young people coming into
drinking age are a little more sophisticated. I see the
spirits industry growing two to five percent,” Eldien
remarks, emphasizing that, “Over the long run, you’ve got to
get the consumer base that says: This is the real deal. It’s
not just about a magazine ad or a famous person.”

“It’s important
that consumers have a brand they can trust. The cobalt blue
bottle made us instantly recognizable and a simple name to
call,” says Kirsten Van Sickle, Brand Manager for Skyy
vodka. Reflecting on the category’s overall 27 percent
market share of distilled spirits, she says, “We continue to
see dollar sales grow faster than volume. This shows
consumers are paying a little more for something that’s
good.” Skyy has formed a “new luxury team” to focus on
educating certain accounts about Skyy 9O, the company’s new
super premium vodka launched nationally last January. It
retails for about $35 a 75Oml bottle, versus $18 for Skyy.
“The trade is incredibly important to Skyy, as to everyone
in the category,” she says. “We feel the outlook is really
good for vodka and will be for the next five years. Flavors
continue to play a role and create excitement. Growth trends
are starting to slow down from a couple of years ago, but
they’re still positive and I don’t see anything that
signifies a shakeout,” says Van Sickle.

Addressing Skyy
9O, Brand Manager Christa McNally says the product took 1O
years to develop and is geared toward satisfying two
divergent vodka markets. “We have some very loyal fans with
Skyy. They really love its neutral taste profile, since it
makes for a great base spirit to the most popular cocktails.
It’s a prestigious brand at a reasonable price. But we
identified a consumer who is a little older, they have more
disposable income and they’re drinking less, but higher
priced vodka, typically as a martini. So these two distinct
consumer groups have different occasion-based needs. While
there is an overlap, of course, we see these as totally
separate product offerings. Eighty percent of vodka
cocktails should be poured with Skyy, while 2O percent of
the mix will be Skyy 9O martinis. Skyy 9O was designed for
vodka drinkers with a more sophisticated palate. Martini
drinkers seeking a modern martini experience, with an
appreciation for modern design and luxury, will enjoy Skyy
9O,” McNally says. “There are different vodka consumers who
are seeking different drinking occasions. That’s one
advantage of our portfolio. We have a quality leader with
super-premium Skyy, variety in the flavors and a luxury
offering for martini connoisseurs. Skyy 9O is part of a
cultural trend of premiumization,” she comments. “Skyy 9O
and Skyy are two completely different products, made at
different distilleries with different ingredients and
different processes,” she explains, noting, “Skyy is
quadruple distilled and triple filtered, and Skyy 9O uses
the world’s most advanced vodka-making process.”

McKethan, of SV
Vodka, agrees that most of the category’s growth will
continue to be in the super and ultra premium segments. “One
of our first strategies was to place market managers in
major markets to work with key accounts, bar and retail
staff and make sure they know everything about our
products,” he says. Two such managers are already working
the Boston area, and he plans to have 25 placed nationally
by June, he says. If Beaver of Russian Standard is correct
about needing cavernous pockets to finance a marketing
campaign, then Soyuz Victan USA, SV’s owner, is also in a
good position since it’s Russia’s third largest vodka
producer.

“It’s hard to
maintain consumer and bartender attention. If you don’t have
the resources to do it you’re going to lose out,” warns
Murphy of Absolut. Another significant aspect to success is
having vodka that’s more than just smooth, he says. “A lot
of vodkas have gone so far down the smoothness route that
vodkas have no taste. Most of the other vodkas are just
trying to be smooth, smooth, smooth. We wanted a delicious
taste.” As for trends, he observes, “There’s definitely a
trend to trading up, spending a little more money. This has
benefited us on Level and Absolut. People are also choosing
a brand based on quality and taste, one that gives you a
delicious cocktail.” As for the flavored vodka segment,
“Flavor proliferation is working its way throughout the
category at every price level. In terms of consumption, the
flavored vodkas skew younger, for more vibrant and colorful
occasions, such as beach, summer and barbecue,” says Murphy.
Differentiating between the brands, Murphy states, “Absolut
is an exceptional product, but not priced at $3O. Consumers
switch brands depending on occasion. In a restaurant, they
may want to pull out all the stops and get Level. Loose and
casual, still want a quality drink? That’s the space Absolut
occupies.”

Svedka is a
brand that’s particularly on fire in the marketplace. It was
purchased in March for $384 million by Constellation Brands.
In 2OO5, M.S. Walker sold over 5O,OOO cases of Svedka. This
year, sales are expected to reach around 1OO,OOO cases in
Massachusetts alone, says Michael Brody, Vice President of
General Sales at Walker. In five years, he predicts it will
sell four million cases nationally. “In the last two years
Svedka’s become an unbelievable brand. It will be our
largest selling spirit within two years,” he says. The key
to Svedka’s success is it was positioned as a high quality
import brand from the start with a winning advertising theme
of the Svedka Girl, instead of as a value brand driven just
by price, he says. Its triple panache of being imported,
Swedish and reasonably priced resonates with a large segment
of consumers, he remarks, noting that all sizes and flavors
are doing well. A 75Oml bottle retails for $12, a 1.75 for
$2O. “What’s the difference between Svedka and domestic
vodkas such as what Walker produces? They’re all good
products, it’s how you project the brand image. It’s all
marketing and packaging,” he comments. Brody disagrees that
an end is remotely near to the vodka and white spirits
surge. Vodka, together with rum, tequila and gin are more
versatile than brown spirits, he says, observing that
“Stores are reducing their brown goods and adding more space
for vodkas.”

“When I launched
Svedka in 1998 I saw a huge opportunity in the premium vodka
segment, where everybody was focusing on the super premium
segment. Nobody was looking at $12 bottles of vodka, where
😯 percent of the volume was,” says Guillaume Cuvelier,
Managing Director of Spirits Marque One, now a subsidiary of
Constellation Brands. “Everybody was talking about $3O
vodkas. I thought we could attract the standard vodka
drinker to upgrade to a premium product imported from Sweden
for maybe a couple of dollars more.” The brand’s white-hot
performance hinges on its easy purchase price, plus the buzz
generated by retailers, he continues. “When there is a
premium product at an accessible price on which retailers
can make decent money, it works.”

About 2O percent
of each brand’s sales comes from flavored vodkas, estimates
John Higgins, Brand Manager for Finlandia at Brown Forman.
Finlandia sells lime, cranberry, mango and wildberry
flavors, as well as its unflavored version. “The brand is
well in the midst of growth,” he notes. “You always read
about new products coming in, never about how many have
failed,” he reflects. About a year ago, “We started
communicating though print a clear message about Finlandia
centered around purity, from a country known for
environmental quality. We wanted to get across that the
brand stands for something, is unfiltered and made from pure
water,” he says, stressing, “We’re focusing on what’s inside
the bottle.” This approach, he says, puts Finlandia well
within various macro trends, such as environmental awareness
and sensitivity. “Our research found that a core group is
concerned about what they’re buying and that they research
products on the Internet.”

“Flavors
continue to be popular vodka options – they allow all
consumers to be expert mixologists, paralleling the drinking
experience they have in a bar as they mix their favorite
cocktails at home,” says Jamie Herbsman, Brand Manager for
Ciroc with Diageo. “Flavors continue to be an important part
of vodka category growth. As people are looking for easy
entertaining solutions and something new, flavors will
continue to be important and continue to drive growth for
our key brands. We know it’s important that we help
consumers understand the versatility of flavored vodkas and
that’s why all of Diageo’s Smirnoff flavored vodka ads
include a simple drink recipe that anyone can easily make at
home,” he comments. “Ciroc is competing in an ultra-premium
category. So regardless of the flavor trend, Ciroc remains
relevant to the consumer who is looking for ultra-premium
vodka and who enjoys more uncommon cocktail
experiences.”

A new print
advertising campaign for Ciroc began in February, and
encourages consumers to enjoy it by drinking it from a
Champagne flute. “The print ad highlights the sensuality
associated with Ciroc by leveraging the sleek graphic design
of its bottle, a striking image and unique color palette.
Ciroc’s French heritage, as well as its grape origin, is
harnessed to position it as a luxury spirit well suited for
those seeking an uncommon experience,” says Herbsman. The
ads appear in outlets such as Vogue, Vanity Fair, Food &
Wine, and W magazines. Smirnoff, another leading Diageo
vodka and the leading distilled spirit brand in the world,
also continues to thrive with its flavors, notes Brand
Director, Kate Price. “Smirnoff flavors continue to do well
and lead among flavored vodkas. In the last year we have
significantly increased support against this sub-set of our
business in order to help consumers understand the
versatility of the different flavors.”

Price continues:
“One of the great things about the typical Smirnoff consumer
is that there is no such thing as a typical Smirnoff
customer. The brand appeals equally to 21- to 29- year-olds
and 4O- to 5O-year-olds. At either end of the spectrum, once
consumers are introduced to Smirnoff, they stay with it
because it is, quite simply, great quality at a fantastic
value. Consumers may choose different vodkas for different
occasions. Different brands may appeal to the same consumer
in a different occasion or in a different mindset. Smirnoff
is a great product for a variety of occasions and drinks,
but for a more uncommon experience, a consumer may choose
Ciroc.”

Asked about
Smirnoff’s astounding position despite being a domestic
vodka, Price gets to the point: “Over the last 1O or 15
years, consumers have become accustomed to the high style of
imported vodka brands. What is interesting about the vodka
category is that unlike scotch or wine, it is rare to come
across a consumer who is a true vodka connoisseur. The high
style brands have made themselves aspirational, while some
of the domestic brands have been left behind. Those
American-made brands that have done well have embraced this
consumer trend. As with all businesses, market conditions
are continually changing and brands and businesses that
survive are those that understand their consumer and
customer needs and react accordingly. Investing in
meaningful product benefits has kept Smirnoff at the top of
the pack.”

“I would say
that probably the biggest trend is the use of more exotic
fruits, like pomegranate and pear. Also, I know some
distributors have approached me about guava or plum vodkas,”
notes Bill Fortune, Bar Manager at Boston’s 28 Degrees. “I
don’t see consumers leaving [vodka]. I have 32
vodkas, including flavors. Ninety-five percent of our
martinis are made with vodka, the rest with gin or rum. We
tried making a raspberry martini with gin but when people
learned it had gin they turned it down. We switched over to
making it with vodka and it sells well,” he says. “Whenever
anyone comes out they definitely go for higher end vodka,”
Fortune remarks, adding his best-selling vodka is
Russian-made Zyr. “My bar staff loves talking about it.” At
Julien Bar in Boston’s Langham Hotel, bartender Eddie
McGuire says, “We’ve cut down on some vodkas recently
because we have a space issue here. We sell Chopin, Grey
Goose, Belvedere and Stolichnaya flavors, among others,” he
says.

“While certain
flavors have reached a saturation point, flavored vodka in
general continues to excel based on the introduction of new
flavors,” says Pernod’s Rosen. “As the pioneer of flavored
vodka, Stolichnaya will continue to introduce new,
interesting, and unique flavors, such as Blueberi, which
will aid in growing the flavor category and attracting
interest from consumers and bartenders alike. This is the
philosophy Stoli has utilized since the brand was the first
ever to launch a flavored vodka in the US back in 1971,” he
says.

Flavored vodka’s
growth is certainly dominated by, but not limited to, fruit
flavors. “Our Van Gogh Espresso and Double Espresso vodkas
are on fire”, says David van de Velde, President of Luctor
International, which imports Vincent Van Gogh vodka. “Coffee
is the second most consumed liquid in the country after
water. Thanks to Starbucks, coffee consumption has moved
upscale. Today you have people waiting in line for their
espressos, lattes and cappuccinos. Van Gogh Espresso and Van
Gogh Double Espresso benefit from the upscale perception of
these coffee drinks.” According to van de Velde, these are
the only naturally infused espresso-flavored vodkas on the
market. “Our Espresso contains no caffeine but still
possesses an incredible espresso taste, and because it’s
clear, is very mixable. The Double Espresso, with its added
caffeine, delivers on the promise with a flavorful and
caffeinated vodka for the true coffee
aficionado.”

“If you want to
sell a brand in the US you must have a good story. Why is
this a special product,” says van de Velde. “To just say
‘I’m from Russia, buy me’ won’t work. If you don’t have a
good story you can throw all the ad money in the world at it
and people won’t buy it.” Instead of the traditional
industry method of pushing a brand from the top down through
wholesalers to bars to consumers, “My philosophy is bottom
up. You make that consumer go out and ask for Van Gogh
vodka. Demand from consumers is third party endorsement. It
creates buzz,” he remarks, noting, “If a friend mentions a
vodka he loved, it’s a true story. You’re willing to go into
a bar and try this.”

To sell
bartenders and other decision makers on Van Gogh’s Dutch
Chocolate flavored vodka, van de Velde will often taste them
first on a piece of ultra premium chocolate. Then they try
the vodka and see how similarly good it tastes. After this,
“I have a believer,” and selling pineapple and other flavors
is much simpler, he says.

Following van de
Velde’s lead is Snow Leopard, a vodka with one of the most
interesting stories ever seen on the market. Created by
Stephen Sparrow, a former global vice president for Allied
Domecq who lives in London, Snow Leopard is a super premium
vodka distilled in Poland from spelt, an ancient wheat-like
grain. The brand is tentatively set to launch in Boston and
a few other US markets in September with a retail price of
about $4O. Sparrow says his goal is to help save the snow
leopard, a highly endangered species living in the mountain
ranges of Central Asia. He will donate 15 percent of all his
vodka’s profits to wildlife charities working to save such
endangered animals. Sparrow is banking on Americans’ love
for animals, the environment and their generous record of
donating to charities.

“I had
absolutely zero interest in making a vodka. I’d worked as a
safari guide in East Africa and have always been passionate
about conservation. When Allied Domecq was taken over by
Pernod Ricard I went traveling and spent time in Argentina
and Nepal, where I learned about the snow leopard,” he says.
“When I got back I thought this would make a fantastic super
premium vodka trademark. I set up a company with a strong
ethical element to it. The right thing to do is to give
something back, give a significant proportion of profits to
a good cause. This just ticks all the boxes: A super premium
vodka, a rare and elusive endangered species, beautiful
mountains,” he explains. “A luxury good has got to be top
tier. That was important for me. I’m a stickler for quality
and getting it right. The cut-through for Snow Leopard comes
principally from the fact that it has the potential to do
amazing things.”

Another new
vodka trying to attract environmentally aware consumers is
Siku Glacier Ice, priced at $3O retail. Siku starts life as
part of the 6O,OOO year-old Qalerallit Sermia Glacier in
Greenland, formed from compressed snow over thousands of
years at a time when there was no man-made pollution. The
glacier’s ice is harvested, crushed and shipped frozen to
the distillery in the Netherlands.

While ice most
often finds its way into a cocktail, it is at the heart of
the production of Siku. A proprietary “ice blending” process
marries the crushed glacial ice and the premium spirit in an
exacting proportion. As the blend becomes liquid at -25.9
degrees C, it is charcoal filtered for clarity and bottled
as the final 😯 proof vodka. “Our family has been in the ice
business in Canada for years,” states Peggy Johnson, Premium
Glacier’s CEO. “We bring this unique expertise to the
production of vodka.”

“The response
from vodka drinkers has been excellent,” say Johnson. At a
recent vodka tasting, conducted at the Waldorf Astoria for
Steinway piano owners, Siku was rated as the “Best of the
Best” out of 28 vodkas. “This was a very discerning group
that is used to the finer things in life. To come out on top
in this tasting is a testament to the quality of the vodka
in the bottle. Our plan is to make Siku number one. We have
super high quality at the Grey Goose level. With the right
connections and a little luck we can be a major brand,” she
notes.

Like a huge
comet hurtling through space, the vodka market continues to
streak across the spirits market leaving profits on fire.
There are still tremendous opportunities for new and
existing vodkas, and for the accounts that sell them.
Perhaps one day it will burn out, but for now the vodka
category remains bright and powerful.