Top 10 fastest-declining spirits brands

New for 2016, we analyse the performance of the world’s fastest-declining brands – and for one category in particular, the past year was particularly bleak.

We reveal the world’s top 10 fastest-declining spirits brands

Many brands in the vodka category continued to struggle amid financial hardship, flavour fatigue and the rise of ‘craft’ labels, but it was Eastern Europe and Russia which bore the brunt of the declines – brought about by Russia’s political tensions with Ukraine and the west, which has damaged its export volumes.

Diageo’s Indian drinks subsidiary United Spirits too witnessed troubles across the board, with alleged financial impropriety creating internal conflict with former chairman and non-executive director Vijay Mallya. The tycoon resigned from his position in February this year and was paid US$75 million by Diageo, but an investigation is ongoing.

Central and Eastern European producer Stock Spirits also features heavily in this list, with significant losses leading to an internal revolt which saw CEO Chris Heath take early retirement.

The company also saw its operating profits plummet 22.3% last year due to further “disruption” in the Polish market.

Click through the following pages to discover the world’s top 10 fastest-declining spirits brands, listed in order of their percentage drops.

10. Belenkaya

2015: 3.5m

2014: 4.7m

% change: -26.5%

Synergy-owned Belenkaya vodka continued its downward trajectory once more this year. The bread peaked at 7.3m case sales in 2012, and witnessed year-on-year decline due to the impact its home market’s political tensions with Ukraine and the west has had on exports. The brand once held a spot as the world’s top three best-selling vodka position, this year marks its lowest recorded figure in the last five years. 

9. Bulbash

2015: 1.2m

2014: 1.7m

% change: -28.7%

Bulbash has a very similar story – as a Russian brand, it too has struggled against economic and political turmoil, posting its lowest volumes since 2010. However, could its fortunes – and that of Belenkaya – be about to change? The Russian vodka industry saw year-on-year exports grow 2.4% to US$39 million for the first five months of 2016, signalling the first signs of recovery for the category.

8. Ciroc

2015: 1.8m

2014: 2.6m

% change: -30.8%

Sales of Diageo’s grape-based Ciroc Vodka were hit by a new “replenishment model on innovations” in the US, which reduced shipments. The brand has been active – launching an apple-flavoured variant as well as Ciroc Ten, sponsoring the Grammy’s and becoming the first alcohol brand to advertise on Instagram – however it was not enough to counteract damage. Rapper Sean “Diddy” Combs owns a stake in the brand and also acts as its global brand ambassador.

7. McDowell’s No. 1 VSOP

2015: 3.5m

2014: 4.7m

% change: -30.8%

Several brandy players had a tough time keeping sales afloat, one of which was United Spirits’ McDowell’s No. 1 VSOP. The troubled Indian drinks group has seen a turbulent year, with the resignation of former chairman and non-executive director Vijay Mallya and the investigation that has ensued – which no doubt disrupted business.

 

6. Talka

2015: 1.8m

2014: 2.8m

% change: -35.7%

Produced in Siberia by Roust, vodka brand Talka too suffered significant double-digit volume declines as the struggle and strife of the vodka category played out in 2015. The 35.7% drop in sales took the brand to the lowest volumes seen since its launch year.

5. Men’s Club

2015: 2.06m

2014: 3.28m

% change: -37.2%

Men’s Club Brandy earned the title of Cognac & Brandy Brand Champion 2014 after recording an impressive 1,300% growth, and continued an upward trajectory in 2015. However its most recent results tell quite a different story: the Indian brand suffered the greatest decline of any Cognac and brandy label in 2015. This again is likely attributed to United Spirits’ ongoing struggles. 

4. Hayward’s Fine

2015: 6.5m

2014: 10.4m

% change: -37.2%

After surpassing the 10m case mark for the first time in 2014, United Spirits-owned Indian whisky Hayward’s Fine tumbled back down to its 2011 sales in 2015. Marking a continuation of USL’s financial woes, Hayward’s Fine’s loss was the most significant of any Indian whisky brand last year.

3. Green Mark

2015: 2.5m

2014: 4.2m

% change: -39.5%

The turmoil experienced by Roust-owned Green Mark Vodka in 2015 is indicative of the troubles faced in the Russian vodka market as a whole. In 2015, Russian vodka exports hit a 10-year low, greatly impacting some of the world’s best-selling vodka vodka brands – as this round-up well attests. However, Green Mark has experienced rapid decline over a number of years, tumbling from 9.3m case sales in 2011.

2. Zoladkowa Czysta De luxe

2015: 2.5m

2014: 4.2m

% change: -41.2%

The world’s second fastest declining spirit brand in 2015 was another of Stock Spirits Group’s Russian vodka brands, Zoladkowa Czysta De Luxe. The brand has lost almost 2m cases since 2011, but it’s most rapid decline was witnessed last year, when volumes plummeted more than 42%. In 2014, Zoladkowa was the 11th best-selling vodka brand in the world; in 2015 the label fell down to 22nd place.

1. 1906

2015: 0.6m

2014: 1.18m

% change: -47.7%

With almost half the volumes it boasted in 2014, Stock Spirits-owned Russian vodka label 1906 was the fastest declining spirit brand (out of the million case sellers) of 2015. The result of geopolitical factors in Russia that impacted the country’s entire domestic vodka market, 1906 vastly dropped below the million case mark in 2015, and was therefore excluded from The Spirits Business‘s Brand Champions list. It’s dramatic decline is indicative of the troubles faced by Stock Spirits, which ultimately led to an investor revolt and early retirement of CEO Chris Heath.