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| Fizz biz gets pricy |
| Sapna Agarwal / Mumbai May 04, 2009, 00:50 IST |
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There has been a flurry of super-premium vodka launches.
This is one segment that hasn’t had the time to think about the economic downturn. Liquor companies are launching super-premium vodkas like never before: look at the number of product extensions, introduction of customised cocktails and product promotions in Tier II and III towns in the last one month.
Super-premium vodkas such as Belvedere from Moet Hennessy, Grey Goose from Bacardi, Ketel One from Diageo and Pinky from United Spirits cost over Rs 2,000 a bottle in the retail market. But all of them are registering a growth of over 50 per cent per annum — a fact that has encouraged Belvedere to launch a raspberry-flavoured vodka (price tag: Rs 2,830) and the ultra premium Belvedere Pure (Rs 3,500). Mathieu Duchiem, business development director, Millennium (the vodka and rum division) of Moet Hennessy, says: “Our consumers are quality conscious”.
What he doesn’t say is while liquor companies have seen a pressure in the middle market, which is extremely price conscious, the super-premium drinkers don’t mind shelling out some extra bucks.
Belvedere Pure, for example, is catering to a market that may be niche, but is extremely profitable. Listen to Diageo marketing director Santosh Kanekar: “Super-premiums account for less than 0.5 per cent of the 4.5 million cases of vodka sales by volume, but constitutes 2 per cent of the Rs 555 crore vodka market’s revenues.”
But industry leaders say it’s just a matter of time before super-premiums account for 10 per cent of the overall vodka market revenues and 2-3 per cent of volume sales.
With these two new launches, Belvedere is extending its positioning. “We now have a complete portfolio to cater to the early evening drinkers at bars and lounges (the fruit-variant vodka) as well as the ones that go to late night clubs and lounges (Belvedere Pure),” says Duchiem.
A super-premium vodka drink or cocktail at a fine dining restaurant could cost anything upwards of Rs 500 plus taxes. But they are selling like hot cakes, it seems. “Over 90 per cent of the super premium vodka sales are on-trade — restaurants, bars, lounges and hotels,” says Arvind Krishnan, marketing head, Bacardi Martini India.
To keep the excitement going, super-premium vodka makers are also promoting customised cocktails. For instance, Grey Goose partnered with the Delhi and Lakme Fashion weeks to have designer cocktails like Clove martini la Wendell Rodrigues and Espresso top la Vikram Phadnis, just to name a few. On Valentines Day, the company tied up with restaurateurs for offering the drink in Swarovski glasses along with chocolates. “We are a lifestyle drink and are looking at different ways to make the drink appealing and attractive to the youth and the fashion conscious,” says Krishnan.
Likewise, Belvedere has launched Downtown Nights, which promotes a new range of Martinis made from nectars. Also coming your way is a higher-end Belvedere IX, which is made from nine energy-based ingredients like ginger and ginseng. Marketers are also looking at getting deeper into non-metros — Tier 1 and II cities. “The rich don’t live in the metros only, and hence we are reaching out to the premium clubs there,” says Anand Iyer, head of the luxury division at United Spirits, which makes the super-premium Pinky vodka.
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