Blog: New Year's Resolution - Buy Blavod?
Olly Wehring | 3 January 2007
It seems that now is the perfect time for a buyer to come forward and breathe life into parts of the Blavod Extreme Spirits business.
The UK-based spirits group yesterday (2 January) posted a set of mixed half-year figures with a leap in sales leading to a cut in the company’s losses.
However, Blavod chief executive Jeff Hopmayer admitted that some of the revenue growth had come at the expense of lower margins in the UK and the US due to the “heavy promotion” of Blavod black vodka. Hopmayer pointed to growing competition in the vodka categories on both sides of the Atlantic for the company’s move to support its flagship product on price.
Citing competition from rival brands is a fair point but Blavod has yet to succeed in setting its black vodka apart from the rest of the category and needs to convince consumers that they should pay a premium for a niche product.
A brand-owner has to work hard at creating awareness of its product in the on-premise. That strategy will help build a loyal following that will stay with the brand when its moves into the off-trade. However, Blavod appears to have been too keen to secure listings with large retailers in the UK and the US without first developing a durable presence in top-end bars in both markets.
The concept behind the brand could prove a successful formula; every bar in the world could have a bottle of black vodka in theory. Takeover talk has surrounded Blavod in recent months, and maybe now is the right time for a suitor to come in and put fresher ideas and greater resources into the company’s black vodka, something the brand certainly deserves.
I'd imagine the term "hippie" is rarely used in a positive way in business circles. ...
It has been about two years since Heineken sponsored the 23rd James Bond movie, Skyfall. Remember when the brewer scored a huge marketing coup by arranging a scene in which the British super spy takes...
Part of a sainted tradition or a waste of a perfectly good whisky? That was the question some may have been asking when Queen Elizabeth II launched the Royal Navy's newest vessel in Scotland today (4 ...
Insomniac radio listeners may have heard me on the BBC World Service this morning, discussing the launch of baijiu in the US....
- Analysis - SABMiller to add bolt-ons in Africa?
- A-B InBev's Move on Tennent's Super Makes Sense
- India: Everyone's Favourite Spirits Market
- Brand Diversification Driving Craft Brewery Growth
- Analysis - Stock Spirits: Poland's number one
- Diageo scraps Arthur's Day, but singer left sad
- Pernod Ricard's Café de Paris Pear, Pomegranate
- PepsiCo CEO sees "profound" change in US consumers
- William Grant sinks GBP185,000 into "No" camp
- SodaStream silent on John Lewis pullout in UK