Subscriber login Close [x]
remember me
You are not logged in.

Nick Gillett: Why vodka needs to break out of its boring ‘steady Eddie’ box

Published:  19 August, 2024

What do you think of when you hear the word ‘vodka’. Not much, right? Where the word ‘whisky’ evokes images of sipping from a glass next to a roaring fire and ‘rum’ transports you to tropical climates grasping a glass filled with amber liquid on ice – vodka just doesn’t deliver the same dreamy (if clichéd) scenarios. But vodka is estimated to have a global value of $40.25 billion by 2030, with a CAGR of 5.6% each year until then (IWSR Vodka Innovation Trends report). So, the category has to be doing something right, surely?

Now let me caveat this from the start – there are some tremendous vodka producers out there who are doing incredible things. These brands are innovating, creating delicious liquids, even marketing themselves brilliantly. And all of this is great for the evolution of the category. My complaint – we need more of that creativity!

Vodka is resting on its laurels as the backbone of the spirits industry; yes, the size of the category and volume sold is gargantuan, but there’s such an opportunity here to be bolder and more engaging.

A dry definition

If we want to question where the issue starts, let’s hark back to 2020, when vodka enthusiasts lobbied for a change to the US federal definition of the spirit. The successful consultation changed the definition from, ‘neutral spirits distilled or treated after distillation with charcoal or other materials so as to be without distinctive character, aroma, taste or color’, to ‘neutral spirits which may be treated with up to two grams per litre of sugar and up to one gram per litre of citric acid’. The use of the word neutral remains unfortunate – but at least we stopped defining the spirit by its absence of character or taste. A fact which is laughably untrue.

Vodka was designed for mixing; a spirit that could deliver a punch of alcohol content and absorb the flavour of what it was mixed with. One in eight searches for cocktails will include vodka, so it is certainly a staple of the cocktail culture.

But don’t take my above comments as disparaging. In fact, it’s because of these very qualities that vodka lends itself to innovation. It can be made quickly, at a comparatively low cost, from any raw ingredient, and its aforementioned ‘neutrality’ means it can take on the subtlest of flavours from raw ingredients. It seems incredible that the creativity in this category isn’t more abundant. Yes, anyone can make vodka. But to make good quality vodka is an art.

Success stories

Some vodkas are created to attract the younger market and one such is Au Vodka. As a ‘disrupter’ brand it is a runaway success, exporting globally, and named the UK’s fastest growing company by the Growth Index 100 in 2023. The liquid might be bright, the flavours might be man-made – but the Au range is a great example of how vodka can innovate to really create some excitement around the category.

Closer to home (and perhaps to my own tastes) is another success story (not to mention a producer that’s always stocked in the home bar at Gillett HQ). And that’s Portobello Road. Another example of innovation at its finest and high-quality vodka, Portobello Road Distillery is creating new and interesting flavours; subtle, in many instances culinary, and with a programme of released limited editions that keeps the range fresh and encourages drinkers to explore. The British Potato Vodka is a high-quality staple spirit, and current flavours like British Asparagus, Toasted Coffee Bean and Calabrian Bergamot Citrus show exactly how to subtly bring something spectacular and fresh to the category.

Even good old Marks & Spencer has released its own seasonal vodka liqueurs, bringing Honey, Salted Caramel, and Cherry varieties to market, just in time for summer 2024.

If you’re a vodka lover looking for more great brands to explore, you’ve got FAIR and East London Liquor Company who are all creating exceptional liquids too. Whether mixing or enjoying neat or with a simple mixer, there’s something there for everyone.

Where it’s headed

Beyond these innovations that are already happening, I think the future of the category will largely be driven by drinks trends. And one such trend that’s sure to be driving growth right now is RTDs. ‘Ready to drink’ and ‘ready to serve’ products (whether complex cocktails or simple spirit and mixers) are expected to grow at a volume CAGR of 6% (IWSR Vodka Innovation Trends report), from now until 2027. And in many markets, including the big one – the US – the majority share of this growth is owned by vodka-based RTDs.

Some RTD producers are in fact enjoying so much success that they’re diversifying the other way – and now producing their own flavoured spirits. Purveyor of hard seltzers, White Claw, is a great example of this, releasing its range of flavoured vodkas last year after gaining success in the RTD category.

Other drinks trends that are driving change and innovation in the category are sustainability and provenance of ingredients. The flexibility of base ingredients to create vodka means it lends itself well to the use of waste materials, which has given birth to brands like Discarded, a zero-waste discarded grape skin iteration. Vodka’s clarity and reliance on raw ingredients also means it’s a great spirit to create if you’re using high-quality, locally sourced ingredients.

Despite my moaning, vodka is a success story in itself. It remains the biggest spirits category in the world by volume. You’ll find it behind every bar, on every booze shelf, in countries the whole world over. But in an industry bursting full of creativity and fresh approaches, I just feel like it could be working a bit harder. Or maybe I’m a grumpy man who needs to leave it well alone. After all, I think it was Mick Jagger who said, “There are no absolutes in life – only vodka.” And if that’s the case, it’s here to stay.

Nick Gillett is MD of premium spirit specialist Mangrove UK.



Keywords: