Vodka Continues to Dominate United States Market

The vodka type of alcohol continues its American dominance, with all price level brands surging forward with sales.

Vodka dominates the spirits market and now consumption of the beverage accounts for over 26.6% of all distilled spirits sold in the United States. This figure results to more than 44 million 9 liter cases. Other spirit categories also continue to be on the rise, however Vodka remains America's favorite libation. Large quantities of new vodka brands continue to enter the market including high quality brands face difficult odds but an ever expanding market.

The best selling vodka brand in the United States remains Diageo's Smirnoff brand with sales of more than 7.25 million 9 liter cases. The Smirnoff twist line has become extremely popular.

The popularity of the vodka brand is primarily due to the alcohol's mixability. Vodka is often featured in many more recipes than other types of spirits. High end vodkas have also fueled the rise in vodkas popularity as these spirits are consistently mixed in Kamikazes, Lemon Drops and others.

Vodkas are the result of microclimate, technique and water. Vodkas have base commodities like grain, grapes or potatoes that are nurtured by the soil and sun. The vodka distillation process renders the composition into the lightest of the spirits because it is not effected by barrel aging techniques. Water is the main ingredient in vodka and gives it its unique identity.

Following is a summary of what is happening around the world with vodka.

To that end, here is our scouting report on what's happening in the world of vodka.

NORTH AMERICA

As stated above, the best selling vodka in the United States is Smirnoff. The brand has expanded its influence with the release of a broad range of dynamically flavored vodkas, the most recent being Strawberry Twist. Others include Cranberry Twist, Citrus, Orange, Raspberry, Green Apple and Vanilla. The brand recently launched a line of Prepared Cocktails, called Smirnoff Signatures, which include the Screwdriver and the Cape Codder.

HOLLAND

While Ketel One and Vox continue to lead the Dutch contingent in sales, the two heavyweights are relatively unalike. Vox Vodka is made from 100% wheat and demineralized water. The vodka is distilled in column stills and filtered through screens made of inert material. Ketel One is distilled with alembic copper pot stills and made entirely from wheat. After distillation, the vodka is rested in tile-lined tanks for six weeks.

The superpremium import Ketel One Vodka saw double-digit percentage sales increases in 2004, to more than 1.33 million 9-liter cases.

And both brands have extended their range into flavors. The Vox portfolio now includes Vox Sour Apple and Vox Raspberry. Ketel One Citroen is an infusion of all-natural citrus flavors. For its part, Ketel One has seen tremendous growth over the past five years, and the superpremium had sales of more than 1.33 million 9-liter cases nationally in 2004.

Kutskova Vodka is made in the heart of Moscow, and is double-distilled in small batches from grain and soft spring water. Priced in the low $20s, Kutskova is one of the good values on the market.

Other impressive Russian brands are Magadanskaya, made from grain, potatoes and pure mineral water in the once closed Siberian city of Magadan; Original Cristall, produced from winter wheat and glacier water, then filtered through quartz crystals to achieve its purity; and Ikon, a continuous-distilled Russian vodka made from grain and artesian water, which is then filtered four times through birch charcoal.

New to the U.S. is Bogorodskaya Vodka, a bold, hardy spirit made in the traditional Russian style. The same can be said about Staraya Moskva. Distilled at the Cristall Distillery. Staraya is triple-distilled from grain and filtered through a proprietary filtration system.

POLAND

By most accounts, wodka was first produced in Poland over 500 years ago. Those who savor vodkas with body and flavor eventually visit the brands produced in here. Among the renowned vodkas distilled in Poland, perhaps the most famous is Wyborowa, a spirit distilled entirely from rye and the preferred brand of Pablo Picasso. It typifies the style and character of the region. Last year Pernod Ricard successfully launched 100% rye Wyborowa Single Estate Vodka. As the name implies, the distillers not only grow the grain, they also distill the product with spring water found on their estate near the Polish village of Turew.

The best-selling Polish vodkas continue to be Chopin and Belvedere. Chopin is made entirely from Stobrawa potatoes from the Siedlce region of Poland. It is distilled four times in small batches. Belvedere is a spicy and zesty spirit quadruple-distilled from premium rye and filtered through charcoal. The distillery has released two flavors of Belvedere -- Pomarancza (mandarins and oranges) and Cytrus (lemons and limes). The superpremium brand notched sales of 440,000 9-liter cases nationally in 2004.

Much of the success Polish vodka currently enjoys in the U.S. is because of Adam Bak, longtime owner of Adamba Imports of Brooklyn. One of his franchise brands is Ultimat Vodka from the Polmos distillery in Bielsko-Biala, Poland. The vodka is distilled from a singular blend of potato, wheat and rye.

Back in the U.S. after a brief hiatus is Królewska, a luxury vodka made in column distilled from 100% wheat and spring water and packaged in a tall, elegantly appointed bottle. Also new on the market is handmade Potacki Wódka, a rye vodka double-distilled in copper alembic stills.
ENGLAND & IRELAND

One of the fastest-growing vodkas is Three Olives, imported from England by from White Rock Distilleries, of Maine. Featuring six flavors (Apple, Chocolate, Raspberry, Vanilla, Cherry and Orange), the brand doubled its sales nationally last year to 350,000 9-liter cases.

To no great surprise, Ireland has entered the fray with a viable contender. Boru Irish Vodka is made by West Cork Distillers in County Cork. The superpremium spirit is quadruple-distilled in small batches from grain and soft spring water and filtered through 10 feet of Atlantic Irish oak charcoal. Boru has three flavor extensions -- Crazzberry (cranberry/raspberry), Orange and Citrus.

SWITZERLAND

Xellent Vodka is the first Swiss representative on the American market. It's a small batch vodka made from high-altitude Swiss rye, which is first distilled in traditional copper alembic stills, then further refined in 45-plate column stills. The all-important water source is the Titlis glacier in the heart of the country.

Ever since the millennium's odometer rolled over, the ranks of premium vodkas have continued to swell. As long as Americans make vodka the country's most in-demand spirit, distillers around the world will continue to roll out new and exciting brands with which to tempt aficionados and novices alike.

Carrying a broad selection of vodka brands and affording aficionados with new taste experiences is vital. Enticing your clientele with a wide array of intriguing vodkas will stimulate sales and enhance the appreciation for this deceptively unpretentious spirit.

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