FLAVORED SPIRITS: GROWTH BUSTER OR GROWTH DRIVER?

Almost every week brings a new flavored vodka or rum it seems like, which has surprisingly helped the category as a whole instead of hurt it. The flavored spirits sector, particularly vodka and rum, has shot through the roof in recent years with consumers more than willing to try new things. AC Nielsen reported that for 2005, flavored spirits (vodka, brand, gin, rum and tequila) were responsible for over 25% of the category volume gains, and while they account for only a small portion of overall spirits sales, they are growth drivers that command premium prices in most segments.

Always the discerning ones, WSD readers agreed. On our survey given in May, 75% of you told us that the increasingly large amount of vodka flavors would NOT dampen overall growth rates.

That’s good news for Heaven Hill that just added its 13th flavored vodka (grape) to its Burnett’s stable, the largest in the flavored category. The product line includes citrus, orange, raspberry, vanilla, sour apple, cheery, watermelon, mango, coconut and the recently added peach. Sounds like a pack of skittles.