The British love of vodka looks more shaken than stirred in new data that shows the tipple has dramatically fallen out of favour with drinkers.
Volume sales have slumped 5% [Kantar Worldpanel 52w/e 13 June], pulled down by a struggling own-label sector that has dipped 4.4% in value and 11.6% in volume [Nielsen 52w/e 12 June].
While rises in VAT and duty hikes accounted for a 2.4% increase in value sales to £564.7m [Kantar], the increases had also driven shoppers away from vodka, claimed experts.
Fewer deals and a retailer shift away from cheap vodka had also put people off, suggested Tesco spirits manager Mark Suddaby. "Selling vodka below cost is over therefore there will be an impact on volume," he said.
Absolut was one of the worst-affected brands, falling 39.3% in value and 47.4% in volume [Nielsen].
Vodka had also lost out to spirits, such as gin and rum, which consumers perceived as being "more interesting", said Tim Dewey, marketing director of G&J Greenall. "Our discussions with consumers indicate the decline in vodka is down to a tiredness with it and a renewed interest in categories, like gin, that offer more in the way of distinct tastes."
There were, however, vodka brands that bucked the trend. Market leader Smirnoff Red Label grew 12.2% and Russian Standard shot up 54.3% [Nielsen], both on the back of extensive marketing.
"Russian Standard has continued to perform well because we have invested over £10m in marketing over the past year," said John Hyman, sales director of brand owner First Drinks. "The vodka sector has become more competitive and brands have been forced to invest in heavyweight ads to boost awareness. This is one reason why own label has declined because credible brands have upped investment."
Over the past year, the total spirits market recorded a 8.4% increase in value to £2.7bn, with volumes up 2.6%. This was driven by a 21.3% jump in value for cream liqueurs and 9.4% increase in blended whisky.
Volume sales have slumped 5% [Kantar Worldpanel 52w/e 13 June], pulled down by a struggling own-label sector that has dipped 4.4% in value and 11.6% in volume [Nielsen 52w/e 12 June].
While rises in VAT and duty hikes accounted for a 2.4% increase in value sales to £564.7m [Kantar], the increases had also driven shoppers away from vodka, claimed experts.
Fewer deals and a retailer shift away from cheap vodka had also put people off, suggested Tesco spirits manager Mark Suddaby. "Selling vodka below cost is over therefore there will be an impact on volume," he said.
Absolut was one of the worst-affected brands, falling 39.3% in value and 47.4% in volume [Nielsen].
Vodka had also lost out to spirits, such as gin and rum, which consumers perceived as being "more interesting", said Tim Dewey, marketing director of G&J Greenall. "Our discussions with consumers indicate the decline in vodka is down to a tiredness with it and a renewed interest in categories, like gin, that offer more in the way of distinct tastes."
There were, however, vodka brands that bucked the trend. Market leader Smirnoff Red Label grew 12.2% and Russian Standard shot up 54.3% [Nielsen], both on the back of extensive marketing.
"Russian Standard has continued to perform well because we have invested over £10m in marketing over the past year," said John Hyman, sales director of brand owner First Drinks. "The vodka sector has become more competitive and brands have been forced to invest in heavyweight ads to boost awareness. This is one reason why own label has declined because credible brands have upped investment."
Over the past year, the total spirits market recorded a 8.4% increase in value to £2.7bn, with volumes up 2.6%. This was driven by a 21.3% jump in value for cream liqueurs and 9.4% increase in blended whisky.
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