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Monday, May 17, 2010

Flavoured vodka is dead, long live flavoured vodka......

Online spirits sales unlike wine has been in a small decline in the last six months as people focus on spending their income wisely. There are though some interesting trends in online spirits sales which should not be ignored.
For the last five years the spirits industry and online spirits has been driven by the amazing growth of vodka, which has now overtaken whisk(e)yas the number one category. This growth has fuelled online spirits sales and driven retail pricing, but it has peaked. Six percent of all vodka online is flavoured vodka, and gin is, after all a flavoured vodka.

It is now surprise that the online vodka drinker is moving into gin, and the category is growing in a robust manner. Premium gin online is in the most growth at 9% with brands like Beefeater 24, Tanqueray No Ten, Hendrick's, Brockman's and a very new brand Sipsmith steaming ahead. All these great brands have one thing in common, small batch production, great bottle design, clever marketing and above all great tasting product. Online spirits will bounce back into growth via the gin category and ironically it will be the online space where consumers discover these brands.

Vodka online is suffering from the same problems the wine online merchants have with champagne sales, as the category has become too ostentatious and expensive. Sparkling wines such as Prosecco are replacing champagne online and gin is replacing vodka.

There is also another two online spirits categories which are pushing the industry out of decline. The first one is bourbon which is American whiskey, which must consist of at least 51% corn with the remainder being wheat and/or rye, and malted barley. Originally created out of Bourbon county. This great category has been in dynamic growth for 6 years lead by the daddy Mr Jack Daniel's, but other brands like Wild Turkey, Buffalo Trace and Blanton's are growing. Online bourbon sales have continued to be strong and certain key words are not cheap to buy because of their growth.

The second one is online gold rum with brands such as Havana Club, Matusalem, Pampero and Appleton's and it is the cocktail industry that is driving this growth as well as a trend back to authentic spirits.
Online spirits will come back into growth and it will be authentic spirits that pull them through, but for gifts online or special occasions you cannot go far wrong with a spirit. Flavoured vodka online may not be dead but it is the old flavoured gin that will steal the show online.

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