Saturday, July 7, 2007

The Next Big Trend

If you have spent any time lately in your local bar, liquor store or establishment that serves alcohol, you would not be wrong if you had the notion that people are drinking more distilled spirits, particularly the clear (otherwise termed “white”) spirits, such as vodka and certain rums. You will see from my blog the other week (Market Trends 1) that this trend has been going on for some time.

The growth that vodka and rum has enjoyed over the past several years is due to a wave in popularity of cocktails and mixed drinks with consumers. Vodka is viewed as the most mixable product of all the distilled spirit categories, more than likely due to vodka having the least aroma, character, color and flavor over other categories. A products aroma, character, color and flavor is determined by the level of secondary constituents (termed congeners) present in the distillate. Secondary constituents provide the character and flavor to different distilled spirits, these consist of:

Acids - this is formed during the fermentation process (prior to distillation) and provide the pungency to the final product.

Aldehydes - impart a fiery taste to the finished product

Esters - impart a pleasant odor to the finished product

Higher Alcohol - impart aroma to the finished product

Under U.S. and European law vodka must not have any distinctive aroma, character, color or flavor. Even though people swear they can tell a difference between vodkas, the truth of the matter is legally there shouldn’t be any discernible difference between brands.

Besides vodka, differences between different kinds of spirits and between various brands of the same class of spirit is due to variations in the character or amounts of the secondary constituents in the distillate. The following table gives the average results obtained with regard to these secondary constituents, by analysis of rum, whisky, brandy and Mendis coconut brandy in relation to every 100 liters of absolute alcohol.



The growth of vodka over the last decade has seen the category now become the largest distilled spirits sector in the US, over taking whisky which used to be the number one selling category. More recently, tequila has experienced notable growth on the back of the industry sector ramping up its marketing for certain brands, though tequila has limitation in relation to mix-ability due to its distinctive flavor. The distilled spirits market is constantly shifting in relation to consumers changing tastes and social trends, what might be in one decade can slowly fall from grace as another category comes into fad.

Given the recent fad of vodka and mix-ability, there has been massive growth in the flavored spirit market, with the introduction of flavored vodkas and rums. A fair majority of these flavored products are artificially flavored. We view that clear brandies will become the next growth market. Clear fruit brandies are 100% natural, clear and mixable like vodka, distilled straight from fruit without the addition of any flavorings or additives. As we like to say, “why settle for an imitation when you can have the real thing“, maybe you will be saying this in a few years time when you go to buy your drink.

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