Analysis - Vodka's global growth set to stay strong
Vodka producers have an opportunity among women in emerging markets, the report suggests
Vodka's global growth prospects remain “positive” with an opportunity for producers to grow volumes in mature and emerging markets, according to an analyst.
In a detailed report on the global vodka market, Bernstein Research said companies have an opportunity among female consumers in emerging markets in the mid-to-long term. This is as women become “more important” as purchasers and consumers of alcohol in these markets, the report said.
Bernstein also flagged an opportunity for continuing premiumisation. “It (vodka) is a category that is still extremely crowded with cheap vodka, and we believe there is still a lot of potential to move from cheap vodka to standard vodka, and ultimately premium vodka over time,” the study said.
Turning to two global producers, the report suggested Pernod has a “slightly more premium vodka portfolio overall” than its rival Diageo, but the French firm “lacks the strength Diageo has in the super-premium vodka markets, particularly with Cîroc”.
“Over the last five years, Diageo has gained global value share in vodka, growing at approximately 7% per annum according to IWSR, driven by solid performance of Smirnoff and explosive but slowing growth of Cîroc,” the report said.
“Over this time frame, Pernod has lost underlying share, growing at an average 1%, due to relatively weak performance from Absolut, notably in the US.”
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