Alcohol Scam
The other day a regular reader of my blog mentioned how much I compare Mendis Coconut Brandy to vodka, so much so that vodka drinkers may want to try Mendis as an alternative now, though maybe not brandy drinkers. I would have to agree with their first point, not that I do this intentionally, rather there just is little news or movement in the brandy market to discuss about. Further more, out of all the brandy products around Mendis is the only product that has cross-category branding ability originated from it being a clear mixable brandy unlike all other brandies in the market (this fact alone will make it stand out in the brandy segment on store shelves), so I don't see need to push this fact as it will be visually evident on the store shelf. Sure there has been the odd hip hop song on a couple of Cognac brands, though these brands really have not been innovative in adapting new concepts to drive the market, it would be fair to say that a great majority of product development and innovation is coming from within the vodka category, i.e. premium and flavored vodkas. However, the main reason why I compare Mendis to vodka is because the whole truth is not out in the market about vodka.
The ironical thing about vodka is that a supposedly ultra-premium bottle of vodka sells for more than a same size bottle of brandy/Cognac, when in fact far greater care has gone into the production of brandy/Cognac than vodka. This comes from the fact that brandy/Cognac is matured under the watchful eye of a highly skilled Master Blender for several years of the products life, as the liquid breathes through the cask to produce a superior spirit that has mellowed from this process. Vodka is simply bottled straight off the still with no aging process to mellow the liquid, what this leads to is a low cost product for beverage companies to produce and mark up at ridiculous profit margins to them under the guise of ultra-premium branding.
In the production of brandy/Cognac a fair amount of our premium costing comes from the warehousing of the liquid in casks to produce a superior smooth product, the premium placement pricing element of brandy is a justifiable fixed cost in our production model. Whereas with vodka nothing has really changed from a cheap to a premium vodka, simple the way by which they market it- "ultra-premium vodka" as opposed to just straight "vodka" or distilled x amount of times.
The cheap production of vodka has enabled a flurry of small novice vodka companies to spring up all over the world, these companies are generally started by groups of investors wanting to catch onto the vodka boom and the categories short production life and high profit margins. Very few of these vodka companies even come near to the heritage of Mendis (60 years) or other Brandy/Cognac distillers. Simply put, the brandy/Cognac market is marked by heritage and prestige, whereas the vodka craze is generally run by short term investors after a quick exit strategy to make a nice return on their investment.
Most small vodka brands are running at a loss and do not project to break even for a long time, the main thing that drives a lot of these companies is the Grey Goose story, the hope of being bought out by a large beverage company before they go bottom up. Looking at the numbers for recent acquisitions (Turi, Grey Goose, 42 Below etc) in the vodka market, sales volume of between 70,000-100,000 9-liter cases in the US market will snag a vodka producer on a buy-out offer any where from $100 Million USD to $200 Million USD, even if the company is not profitable.
The main reason why I compare Mendis to Vodka is I feel the vodka market is based off hype and consumers need to be made aware of where true luxury and refinement of product lies within the distilled spirits market. It is clearly evident that Mendis is a unique and luxury brandy over all other brandies in the market, though massive marketing budgets in the vodka market segment have lead consumers to believe that they are getting a superior product, which is not true from a production stand point.
According to the Alcohol Tobacco and Firearms Identity of Distilled Spirits: Vodka must not have any discernible flavor or aroma (vodka is simply termed a neutral spirit). It is easy to boil out all the constituents (which vodka is) in ethyl alcohol to produce a clean clear distilled spirit, though it takes the experience of a Master Distiller to be able to produce a brandy with just the right constituents (which gives a distilled spirit its unique taste) in the final product to produce a balanced and refined product. There is no room for error when producing a refined brandy, cause the constituent (esters, higher alcohols, acid, furfural, aldehydes) are what imparts the unique aroma and taste in the final product.
With Vodka being a neutral spirit, the only difference in taste is the different water each brand uses to reduce in proof the final product (though many people will disagree with this statement). As a vodka drinker you are simply a fine connoisseur of filtered water, you are kidding yourself if you really think you are tasting a difference in the actual spirit. Sorry but this is the actual truth, all you are paying for in premium vodkas is a maybe better tasting filtered water at the end of the day. An excellent case in point is the recent blind taste testing done on several so called ultra-premium vodka brands by the award winning ABC news team, check it out here, this just goes to prove it's all in the mind and impact of marketing when it comes to vodka.
In my view Brandy/Cognac and whisky (in particular single malt whisky’s) are the only verifiable ultra-premium distilled spirit categories based on their age old trade secret distillation and maturation methods. Though this will not stop the large beverage companies pushing their highest profit margin products- vodka, to consumers making them think they are getting a premium product. This is why I compare Mendis to Vodka, Mendis is superior to Vodka yet has the mix-ability of it also, that other brandies do not. I don't see the need to compare Mendis to other brandies as Brandy drinkers will try Mendis based on it being a different premium product against products they already know on the store shelf. However, to make vodka consumers aware of what truly qualifies a product as premium it takes education and awareness of which we have to do. It’s not like vodka drinkers skim the brandy shelf- they enter the store wanting a vodka. Therefor we need to create brand awareness prior to them entering the store, to know what is the most premium clear mix-able product, that being Mendis Coconut Brandy.
The ironical thing about vodka is that a supposedly ultra-premium bottle of vodka sells for more than a same size bottle of brandy/Cognac, when in fact far greater care has gone into the production of brandy/Cognac than vodka. This comes from the fact that brandy/Cognac is matured under the watchful eye of a highly skilled Master Blender for several years of the products life, as the liquid breathes through the cask to produce a superior spirit that has mellowed from this process. Vodka is simply bottled straight off the still with no aging process to mellow the liquid, what this leads to is a low cost product for beverage companies to produce and mark up at ridiculous profit margins to them under the guise of ultra-premium branding.
In the production of brandy/Cognac a fair amount of our premium costing comes from the warehousing of the liquid in casks to produce a superior smooth product, the premium placement pricing element of brandy is a justifiable fixed cost in our production model. Whereas with vodka nothing has really changed from a cheap to a premium vodka, simple the way by which they market it- "ultra-premium vodka" as opposed to just straight "vodka" or distilled x amount of times.
The cheap production of vodka has enabled a flurry of small novice vodka companies to spring up all over the world, these companies are generally started by groups of investors wanting to catch onto the vodka boom and the categories short production life and high profit margins. Very few of these vodka companies even come near to the heritage of Mendis (60 years) or other Brandy/Cognac distillers. Simply put, the brandy/Cognac market is marked by heritage and prestige, whereas the vodka craze is generally run by short term investors after a quick exit strategy to make a nice return on their investment.
Most small vodka brands are running at a loss and do not project to break even for a long time, the main thing that drives a lot of these companies is the Grey Goose story, the hope of being bought out by a large beverage company before they go bottom up. Looking at the numbers for recent acquisitions (Turi, Grey Goose, 42 Below etc) in the vodka market, sales volume of between 70,000-100,000 9-liter cases in the US market will snag a vodka producer on a buy-out offer any where from $100 Million USD to $200 Million USD, even if the company is not profitable.
The main reason why I compare Mendis to Vodka is I feel the vodka market is based off hype and consumers need to be made aware of where true luxury and refinement of product lies within the distilled spirits market. It is clearly evident that Mendis is a unique and luxury brandy over all other brandies in the market, though massive marketing budgets in the vodka market segment have lead consumers to believe that they are getting a superior product, which is not true from a production stand point.
According to the Alcohol Tobacco and Firearms Identity of Distilled Spirits: Vodka must not have any discernible flavor or aroma (vodka is simply termed a neutral spirit). It is easy to boil out all the constituents (which vodka is) in ethyl alcohol to produce a clean clear distilled spirit, though it takes the experience of a Master Distiller to be able to produce a brandy with just the right constituents (which gives a distilled spirit its unique taste) in the final product to produce a balanced and refined product. There is no room for error when producing a refined brandy, cause the constituent (esters, higher alcohols, acid, furfural, aldehydes) are what imparts the unique aroma and taste in the final product.
With Vodka being a neutral spirit, the only difference in taste is the different water each brand uses to reduce in proof the final product (though many people will disagree with this statement). As a vodka drinker you are simply a fine connoisseur of filtered water, you are kidding yourself if you really think you are tasting a difference in the actual spirit. Sorry but this is the actual truth, all you are paying for in premium vodkas is a maybe better tasting filtered water at the end of the day. An excellent case in point is the recent blind taste testing done on several so called ultra-premium vodka brands by the award winning ABC news team, check it out here, this just goes to prove it's all in the mind and impact of marketing when it comes to vodka.
In my view Brandy/Cognac and whisky (in particular single malt whisky’s) are the only verifiable ultra-premium distilled spirit categories based on their age old trade secret distillation and maturation methods. Though this will not stop the large beverage companies pushing their highest profit margin products- vodka, to consumers making them think they are getting a premium product. This is why I compare Mendis to Vodka, Mendis is superior to Vodka yet has the mix-ability of it also, that other brandies do not. I don't see the need to compare Mendis to other brandies as Brandy drinkers will try Mendis based on it being a different premium product against products they already know on the store shelf. However, to make vodka consumers aware of what truly qualifies a product as premium it takes education and awareness of which we have to do. It’s not like vodka drinkers skim the brandy shelf- they enter the store wanting a vodka. Therefor we need to create brand awareness prior to them entering the store, to know what is the most premium clear mix-able product, that being Mendis Coconut Brandy.
Labels: alcohol scam
posted by Christopher Spafford Richardson at
4:13 PM
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