James Wilmore

Analysis - Vodka's global growth set to stay strong

By | 2 December 2013

Vodka producers have an opportunity among women in emerging markets, the report suggests

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.” 

Expert analysis

Vodka in G20 to 2015: Market Guide

This report provides in-depth detail on the trends and drivers of the Vodka market in G20. The report includes quantitative information (historic and forecast market values). The report provides data, analyses and opinion to help companies in the Alcoholic Drinks industry better understand the changes in their environment, seize opportunities and formulate crucial business strategies.

Sectors: Spirits

Companies: Diageo, Pernod, Absolut, Smirnoff

There are currently no comments on this article

Be the first to comment on this article

Related research

Pernod Ricard SA - SWOT, Strategy and Corporate Finance Report

Pernod Ricard SA - SWOT, Strategy and Corporate Finance Report, is a source of comprehensive company data and information. The report covers the company’s structure, operation, SWOT analysis, product and service offerings, detailed financials, and co...

Pernod Ricard SA - Mergers & Acquisitions (M&A), Partnerships & Alliances and Investment Report

MarketLine's Company Mergers & Acquisitions (M&A), Partnerships & Alliances and Investments reports offer a comprehensive breakdown of the organic and inorganic growth activity undertaken by an organization to sustain its competitive advantage....

Diageo plc - Mergers & Acquisitions (M&A), Partnerships & Alliances and Investment Report

MarketLine's Company Mergers & Acquisitions (M&A), Partnerships & Alliances and Investments reports offer a comprehensive breakdown of the organic and inorganic growth activity undertaken by an organization to sustain its competitive advantage....

Related articles

Analysis - Diageo dips in Q3 as China still chokes

"Disappointing" was how one analyst group described Diageo's trading update today. That sentiment has since been reflected on the London Stock Exchange.

Editor's Viewpoint - Spirits in China: The Blip is Here to Stay

I'm calling it, people. Today is the day that I feel confident enough to conclude that the China 'crisis' is not a blip.

just For Subscribers - The week in drinks

Here are the ten most viewed, subscriber-only items on just-drinks this week:

just-drinks tagline

Not a member? Join here

Decrease font sizeDecrease font sizeDecrease font size Increase font sizeIncrease font sizeIncrease font size Comment on this article Email this to a friend Print this page