Analysis: Spirits in global travel retail

30th January, 2018 by admin


In DF and TR, vodka rules the white spirits segment, and is led, in volume terms, by Absolut and Smirnoff. In the broader wine and spirits sector, vodka has a 6.5% share by value, and is seeing interesting development at the high end of the market.

One of the drivers here has been Bacardi-­owned Grey Goose, which has witnessed good performances in the US, UAE, Germany and the UK. “We are also making significant strides in introducing Chinese and Indian travellers to the portfolio, many of whom are exploring the vodka category for the first time,” says Mike Birch, managing director at Bacardi Global Travel Retail.

John McDonnell, managing director of Tito’s Handmade Vodka, says that his brand has also built loyalty outside of the US thanks to the craft spirits trend. He says: “Right across the globe, the pattern is consistent: it’s all about craft spirits. Increasing craft offerings will help operators survive any upcoming storm.”

Vodka brands at the super­-premium end of the market are trying to build positions in the key Asia Pacific domestic markets to take luxury leader status, especially on the domestic cocktail circuit, and secure higher DF and TR sales. They have a difficult task, given that this region skews heavily to whisky.

Differentiating products has, however, enabled greater segmentation throughout the category.

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